Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Guangdong Electric Power Development Co., Ltd.
2016 Annual Report
April 2017
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors , Supervisory Committee ,Directors, Supervisors and Senior Executives of the Company
hereby guarantees that there are no misstatement, misleading representation or important omissions in this report
and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
Mr.Huang Zhenhai, The Company leader, Mr. Li Xiaoqing, Chief financial officer and the Mr.Meng Fei, the
person in charge of the accounting department (the person in charge of the accounting )hereby confirm the
authenticity and completeness of the financial report enclosed in this Annual report.
All the directors attended the board meeting for reviewing the Annual Report except the follows:
The name of director who did The name of director who was
Positions Reason
not attend the meeting in person authorized
Hong Rongkun Director Due to business Gao Shiqiang
Li Mingliang Director Due to business Yang Xinli
Zhang Xueqiu Director Due to business Liu Tao
Wang Xi Independent Directorr Due to business Shen Hongtao
This annual report involves the forecasting description such as the future plans, and does not constitute the actual
commitments of the company to the investors. The investors should pay attention to the investment risks.
The Company is mainly engaged in thermal power generation. The business of thermal power generation is
greatly affected by factors including electric power demand and fuel price. Refer to Section IX(4) of Chapter 4 of
this 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 of
5,250,283,986 for Base on the Company‘s total share capital ,the Company would distribute cash dividend to all t
he shareholders at the rate of CNY 0.80 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. 2016 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Definition
Refers
Terms to be defined Definition
to
Refers
Yudean Group Guangdong Yudean Group Co., Ltd.
to
Refers
Zhanjiang Company Zhanjiang Electric Power Co., Ltd.
to
Refers
Yuejia Company Guangdong Yuejia Electric Power Co., Ltd.
to
Refers
Yuejiang Company Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.
to
Refers
Zhenneng Company Maoming Zhenneng Thermal Power Co., Ltd.
to
Refers
Jinghai Company Guangdong Yudean Jinghai Power Co., Ltd.
to
Refers
Zhanjiang Wind Power Company Guangdong Yudean Zhanjiang Wind Power Co., Ltd.
to
Refers
Zhongyue Compamy Zhanjiang Zhongyue Energy Co., Ltd.
to
Refers
Bohe Company Guangdong Yudean Bohe Coal & Electricity Co., Ltd
to
Refers
Guangqian Company Shenzhen Guangqian Electric Power Co., Ltd.
to
Refers
Huizhou Natural Gas Company Guangdong Huizhou Natural Gas Power Co., Ltd.
to
Refers
Red Bay Company Guangdong Red Bay Power Co., Ltd.
to
Refers
Pinghai Power Plant Guangdong Hluizhou Pinghai Power Co., Ltd.
to
Refers
Humen Power Company Guangdong Yudean Humen Power Co., Ltd.
to
Anxin Electric Inspection & Installation Refers
Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd
Company to
Refers
Guohua Taishan Guangdong Guohua Yudean Taishan Power Generation Co., Ltd.
to
Refers
Yudean Industry Fuel Company Guangdong Power Industry Fuel Co., Ltd.
to
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Refers
Huadu Natural Gas Company Guangdong Huadu Natural GasT Thermal Power Co., Ltd.
to
Refers
Dapu Company Guangdong Dapu Power Generation Co., Ltd.
to
Refers
Wind Power Company Guangdong Wind Power Co., Ltd.
to
Refers
Lincang Company Lincang Yudean Energy Co., Ltd.
to
Refers
Qujie Wind Power Company Guangdong Yudean Qujie Wind Power Generation Co., Ltd.
to
Refers
Electric Power Sales Company Guangdong Yudean Electric Power Sales Co., Ltd.
to
Refers
Weixin Yuntou Weixin Yuntou Yudean Zhaxi Energy Co., Ltd.
to
Refers
Binglang Jiang Company Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd.
to
Refers
Yongan Natural Gas Company Guangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd.
to
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
II. Basic Information of the Company
1.Company information
Stock abbreviation Yue Dian Li A, Yue Dian Li B Stock code： 000539、200539
Stock exchange for listing： Shenzhen 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 粤电力
any)
English name (If any) GUANGDONG ELECTRIC POWER DEVELOPMENT CO.,LTD
English abbreviation (If any) GED
Legal Representative Huang Zhenhai
Registered address 23-26/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province
Postal code of the Registered
Address
Office Address 23-26/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province
Postal code of the office
address
Internet Web Site http://www.ged.com.cn
E-mail ged@ged.com.cn
Ⅱ.Contact person and contact manner
Board secretary Securities affairs Representative
Name Liu Wei Qin Xiao
36/F, South Tower, Yudean Plaza, No.2 36/F, South Tower, Yudean Plaza, No.2
Contact address Tianhe Road East, Guangzhou,Guangdong Tianhe Road East, Guangzhou,Guangdong
Province Province
Tel (020)87570276 (020)87570251
Fax (020)85138084 (020)85138084
E-mail liuw@ged.com.cn qinxiao@ged.com.cn
Ⅲ. Information disclosure and placed
Newspapers selected by the Company for information China Securities Daily, Securities Times and Hong Kong Commercial
disclosure Daily(overseas newspaper for English version)
Internet website designated by CSRC for publishing
http://www.cninfo.com.cn
the Annual report of the Company
The place where the Annual report is prepared and Affair Dept. Of the Board of directors of the Company
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
placed
Ⅳ.Changes in Registration
Organization Code 91440000617419493W
Changes in principal business activities
No change
since listing (if any)
Changes is the controlling shareholder in
No change
the past (is any)
Ⅴ. Other Relevant Information
CPAs engaged
Name of the CPAs PWC Certified Public Accountants (special general partnership)
11th Floor,PricewaterhouseCoopers Center,2 Corporate Avenue 202 Hu Bin Road, Huangpu
Office address
District,Shanghai 200021, PRC
Names of the Certified Public
Wang Bin, Chen Junjun
Accountants as the signatories
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 index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□ Yes √ No
Changed over last year
2016 2015
（％）
Operating Gross income（RMB） 22,681,120,022 25,723,810,816 -11.83% 29,046,568,685
Net profit attributable to the
shareholders of the listed company 936,534,941 3,237,733,312 -71.07% 3,003,977,134
（RMB）
Net profit after deducting of
non-recurring gain/loss attributable
1,074,697,758 2,953,985,089 -63.62% 3,113,672,193
to the shareholders of listed
company（RMB）
Cash flow generated by business
8,704,775,818 10,442,437,145 -16.64% 8,392,794,644
operation, net（RMB）
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Basic earning per
0.18 0.62 -70.97% 0.57
share(RMB/Share)
Diluted gains per
0.18 0.62 -70.97% 0.57
share(RMB/Share)(RMB/Share)
Net asset earning ratio（%） 3.99% 14.42% -10.43% 14.94%
End of Changed over last year
End of 2016 End of 2014
2015 （％）
Gross assets（RMB） 70,677,003,760 71,919,934,143 -1.73% 69,084,825,852
Net assets attributable to
shareholders of the listed company 23,378,847,225 23,754,596,981 -1.58% 21,310,054,597
（RMB）
Ⅶ.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
√ Applicable □Not applicable
In RMB
Net profit attributable to the shareholders of the Net Assets attributable to the shareholders of
listed company the listed company
Amount in the Amount in the previous End of the reporting Beginning of the
reporting period period period reporting period
According to CAS 936,534,941 3,237,733,312 23,378,847,225 23,754,596,981
Items and amount adjusted according to IAS
a. The difference arising from
recognition of goodwill after
64,623,000 64,623,000
merger of enterprises under
the same control
b. Difference arising from
recognition of land use value -630,000 -630,000 18,860,000 19,490,000
after enterprise merger
c. Influence on minority
54,120 54,120 4,701,979 4,647,859
interests
According to IAS 935,959,061 3,237,157,432 23,467,032,204 23,843,357,840
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √Not applicable
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
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) 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 quarter Second quarter Third quarter Fourth quarter
Operating income 4,405,938,708 5,829,050,858 6,207,318,559 6,238,811,897
Net profit attributable to the
110,019,230 628,355,554 738,187,983 -540,027,826
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
110,018,307 633,483,659 744,574,860 -413,379,068
to the shareholders of listed
company
Net Cash flow generated by
2,036,376,774 2,660,123,408 3,353,518,303 654,757,333
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index 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. 2016 Annual Report
Items Amount (2016) Amount (2015) Amount (2014) Notes
Non-current asset disposal
gain/loss(including the
write-off part for which assets -3,723,321 238,178,694 -57,685,202
impairment provision is
made)
Govemment subsidy
recognized in current gain and
loss(excluding those closely
19,074,097 16,112,458 20,895,756
related to the Company’s
business and granted under
the state’s policies)
Gains and losses from
exchange of non-monetary 21,977,012
assets
Asset impairment provisions
due to acts of God such as -101,877,473
natural disasters
Yuejia company owned Meixian power plan
t shut down in August 2016, some employee
s and Dapu company signed a labor contract,
Expenses on business the company must pay the remaining retreat
reorganization, such as or termination of labor contract employees c
-59,541,635
expenses on staff orresponding dismissal benefits, and accordi
arrangements, integration, etc. ng to the same period bonds interest rate as a
discount rate Calculate the present value of
future cash outflows and confirm the dismiss
al benefits.
Gain/loss from change of fair
value of transactional
financial asset and liabilities,
and investment gains from
disposal of transactional
financial assets and liabilities 808,317
and sellable financial assets
other than valid period value
instruments related to the
Company’s common
businesses.
Switch back of provision for
depreciation of account 20,790 1,623,216
receivable which was singly
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
taken depreciation test.
Gain/loss on loans obtained
563,812
by entrusting others
In accordance with requirements of Program
Effect on current
for Promoting the Tax Check and Random
gains/losseswhen a one-off
Check Implementation SZF[2015] No. 104
adjustment is made to
from Tax State Administration of Taxation,
current gains/losses
-125,842,425 the company headquarters and affiliated
according to requirements of
units were selected by the tax bureau for the
taxation, accounting and
tax check and had paid the tax dues, penalty
other relevant laws and
and overdue fine by the end of the current
regulations
year subject to relevant penalty results.
Pinghai company received Written Decision
of Administrative Penalty (YHZCF [2016]
No. 019) issued by Guangdong Ocean
&Fishery Administration on November 14,
2016, in which, Pinghai company was
subject to the penalty decision of 172
million yuan due to the action that Pinghai
has conducted Pinghai plant site levelling
and bank protection project, the penalty
amount will influence the net profit
belonging to the parent company by 77.40
Other non-business income
million yuan or so. Pinghai has already
and expenditures other than -104,916,156 29,997,321 -40,486,215
applied the administrative reconsideration
the above
for the project above, which is still under
negotiation and coordination among many
parties. In accordance with Agreement for
Assets Purchase through Issuing Shares
concluded between Yuedian group and the
company in 2012, Yuedian group will
compensate the company for the actual
losses caused by the event above subject to
the result of the administrative
reconsideration of lawsuit for the penalty
event above.
Less: Amount of influence of
18,950,258 17,651,335 -16,945,739
income tax
Influenced amount of minor
-155,736,881 4,886,717 -49,516,991
shareholders’ equity (after tax)
Total -138,162,817 283,748,223 -109,695,059 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
We are mainly occupied in investment, construction and management of electric power projects. We have been
upholding “electricity-oriented, pluralistic development”, with power as the mainstay and diversified structure of
power source. With the exception of development, construction and operation of large-scale coal-burning
power-generating plants, we also set our feet on clean energy projects like LNG power generation, wind power
generation and hydroelectric generation, which are reliably transmitted to innumerable users through power-grid
companies. As of December 31,2016, the controllable installed capacity is 20 million KW, where the controllable
installed capacity of coal-burning power generation, LNG generation and renewable energy generation like wind
power and hydropower is 17.35 million KW, 2.34 million KW and 310000 KW respectively.
Income source is primarily contributed by power production and sales, and main business income is derived from
Guangdong Province. The company electricity sales price is subject to the benchmark price verified by the price
authority per relevant policies based on National Development and Reform Commission (NDRC) and the
electricity transaction price through the market trade implementation per Guangdong Electricity Market Trade
Basic Rules and supporting files.
In the reporting period, the electricity sold is 56.513 billion KWH, 3.828 billion KWH YoY drop; average price
stated in the consolidated statements is 466.67 Yuan/ KWH (tax inclusive, the same below), YoY drop of 25.54
Yuan/ KWH. The company business revenue realized was 22.681 billion yuan in the statement of consolidated
statement with year-on-year decrease of 11.83%.
Coal-burning power generation is our focus. As fuel costs hold a great proportion in operating costs, fluctuations
in coal price mean a lot to the business performance. In the reporting period, the power fuel cost is 11045.3255
million Yuan, accounting for 62.07% of main business, 273.6882 million Yuan YoY drop, 2.42% decline.
The power supply standard coal unit price (kerosene oil-gas) is 625.95 yuan/t increased by 3.43% in amount of
20.77 yuan/t on year-on-year basis.
Within the report period, under the influence of the excess power sector capacity and intensifying market
competition, the company’s generated energy decreased obviously; simultaneously, the state reduced the on-grid
electricity price again after January 1, 2016 and the coal price recovered obviously resulting in the sharp decrease
of the company electricity generation business profits and the investment revenue of associated companies. At the
same time, the affiliated partial power plants coal-fired units conducted the ultra-low emission and energy-saving
and emission reduction transformation with impairment provision for partial dismantled or scrapped equipment
parts in advance. Besides, the non-operation items including the administrative penalty for Pinghai power plant
excessive reclamation, supplementary payment of taxes, fines and overdue fees, etc. through the tax audit, etc.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
also produce influence on the company profits. Based on factors above, the company net profit belonging to the
parent company shareholders decreased sharply by 71.07% on year-on-year basis and the profit belonging to the
parent company shareholders was 936.5349 million yuan realized in 2016.
Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
Equity assets No major changes
Fixed assets No major changes
Intangible assets No major changes
Construction in process No major changes
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
I. Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. Regional power-generating company with installed capacity expanded in a stage-based and leap-frog way
The power-generating assets are mainly distributed in Guangdong. Major assets reorganization realized since
2012 has given great impetus to power-generating installed capacity. The controllable installed capacity has been
expanded to 20 million KW of year-end 2016 from 8.08 million KW of year-end 2011, power generation to
59.923 billion KWH in 2016 from 35.305 billion KWH in 2011.
2. Yudean Group has oriented our company as a sole listed platform for domestic power-generating assets
integration
We are the shareholder of Yudean Group, one of the biggest power-generating groups in south China, which
takes advantage of its source, assets scale, to give sustaining support to our company’s advancement and
expansion. It has oriented us as a sole listed platform for domestic power-generating assets integration. We are
endowed with a priority offered by it in power source development, asset acquisition. It has undertaken that in five
years of the last major asset reorganization, it will inject its asset complying with listed conditions through
acquisition, restructuring and other ways. Based on this, our installed capacity is going to embrace another
leap-frog growth.
3. State-of-the-art unit performance built on implementation of the energy-saving dispatching policy
By virtue of high parameters, large capacity, nice efficiency, low coal consumption, reliable operation and
environmental protection, our thermal power generating unit units are given priority in energy-saving dispatching.
As a result, our units are more competitive in on-grid price.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
4. Stepwise optimization of industrial structure and power source structure
The company takes the power generation as the core business accompanied with optimized development of the
coal-fired power, stable development of gas electricity and energetic development of the wind power and water
power, etc., optimizes the power source structure constantly and improves the market competition. which are
gradually optimized accompanied by acquisition of and progress in clean energy projects.
5. Experienced management, sophisticated production technology
Administrators and technical experts are veterans in operation and management of power plants, and key
staff have years of practical experience in the power sector. We have invested enormous efforts to the standard of
management, intensifying management and paying high priority to launch energy-conserving and
consumption-reducing programs. Finally, coal consumption on thermal power units is declining year by year in
return for these efforts.
6. Hold fast to the opportunity of “electric price reform”, exploit new realms of business
In July, 2015, we established a wholly-funded electric marketing company, aiming at competing with electricity
marketing, sharing dividend from “”electric price reform”, The electricity sales company has already accumulated
plenty of clients based on the power generation enterprises. The company will continue promoting the electricity
sales business vigorously, adopt positive measures subject to relevant polices of the national power system
reformation for expanding the power distribution and sales business and comprehensive energy services and
cultivating the new profit increase points.
IV. Management’s Discussion and Analysis
Ⅰ.General
In 2016，The total energy consumption in Guangdong was 560.412 billion KWH increased by 5.53% on
year-on-year basis with recovered growth rate on year-on-year basis. But XD group electric quantity increased by
2.81% on year-on-year basis and accounted for about 32.72% of the overall-allocation electricity purchase
quantity within the province upon additional distribution of 17.4 billion Kwh beyond the plan, the nuclear power
increased by 15.79% on year-on-year basis and the provincial coal-fired units power generation space would be
squeezed further. Within the report period, the company completed accumulatively the power generation 59.923
billion KWH in the statement of consolidated standards with on year-on-year decrease of 6.50%; completed
90.02% of the whole-year on-grid energy planned upon completion of the on-grid energy 56.513 billion kWh
with year-on-year decrease 6.34%. The company on-grid energy completed for one whole year accounted for
15.87% of the provincial electricity purchase market decreasing by 2.17% on year-on-year basis, the average
utilization hours for the company holding coal-fired units are 3348 hours decreased by 720 hours on year-on-year
basis.
Under influence of adverse factors including the serious surplus of the power supply, increasing competition in
the side of the power sales, continuous decrease of the electricity price and obvious recovery of the coal price, etc.,
the company power generation business profits decreased sharply accompanied with sharp decrease investment
revenue in the associated companies. At the same time, the affiliated partial power plants coal-fired units
conducted the ultra-low emission and energy-saving and emission reduction transformation with impairment
provision for partial dismantled or scrapped equipment parts in advance. Besides, the non-operation items
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
including the administrative penalty for Pinghai power plant excessive reclamation, supplementary payment of
taxes, fines and overdue fees, etc. through the tax audit, etc. also result in the share decrease of the company
profits on year-on-year basis. By the end of 2016, the company total assets in the statement of consolidated
standards were 70.677 billion yuan with year-on-year decrease of 1.73%; the interests belonging to the parent
company shareholders were 23.379 billion yuan with year-on-year basis of 1.58%. The company business revenue
realized was 22.681 billion yuan in the statement of consolidated statement with year-on-year decrease of 11.83%;
the net profit belonging to the parent company shareholders was 937 million yuan with year-on-year decrease of
71.07%; the earning per share was 0.18 yuan (0.62 yuan for the same period in the previous year). The company
loan in the statement of consolidated standards was 41.34 billion yuan in total with the asset-liability ratio of
58.49%.
As the power industry was depressed overall and the power market competition became increasingly competitive,
the company strived to change positively. On one hand, took part in positively electricity quantity competition
with the “market electricity”, the affiliated power plants completed the market transaction electric quantity 12.521
billion KWH for the whole year accounting for 28.67% of the “market electricity” matched with the installed
proportion; on the other hand, based on the power sources and technical advantages, the affiliated power
companies won 11.2 billion KWH in the side of users for the whole year accounting for 25.45% of the provincial
“market electricity”, the electricity sales scale, bid acceptance probability, bid-acceptance electricity quantity and
price standard all ranked first among the province with realization of about 104 million yuan profits and
supplementation of the “market electricity” surrender part of the profits. Simultaneously, the whole-year
electricity quantity and profitability level of the gas power generation company and wind power company of the
company and small hydro-electric power plants sharing by the company increased on year-on-year basis against
the trend, the clean energy business accounted for 13.29% and 45.63% respectively of the net profits for the
on-grid electricity quantity and of the profits belonging to the parent company in the statement of consolidated
standards, which increased respectively by 1.57% and 35.47% on year-on-year basis.
Within the report period, the company focused on promoting the project construction including Dapu “developing
large units and suppressing small ones” project #2 unit, Bohe project, Huizhou gas combined heat and power
generation expansion project, Lincang hydropower Dayakou project, Zhanjiang Hongxinlou, Qujie and Shibanling
wind power, etc., and promoted the implementation of the affiliated coal-fired power plants ultra-low emission
and energy-saving transformation. And, Dapu “developing large units and suppressing small ones” project #2 unit
was put into operation in June and Dianbai hot water and wind power project passed the trial run for 250 hours in
April and was put into the commercial operation, both of which may increase the control installed capacity
649,500 KW. The company continued intensifying the development of the clean energy, increased one 2×400,000
kW gas combined heat and power generation project passing approval and 6 wind power projects of 298,000 kW
in total were approved; and another 2 wind power projects of 80,000 kW in total were included into the local wind
power development and construction program in 2016 and would be approved in January 2017.
Within the report period, the company completed preparation of the 13th Five-year Development Plan Report,
determined the strategic position of “the large-scale group power generation listing company with the power
generation business as the main development field, the industrialization operation as the main development idea,
the domestic first-class power generation listing company with the international competition as the main
development direction and serving for national strategies, group strategies and urban development” and built the
new image for Yudean brands strongly.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
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
2016
Increase /decrease
Amount Proportion Amount Proportion
Total operating
22,681,120,022 100% 25,723,810,816 100% -11.83%
revenue
Industry
Electric power ,
Steam sales and 22,522,639,179 99.30% 25,527,421,644 99.24% -11.77%
labor income
Other 158,480,843 0.70% 196,389,172 0.76% -19.30%
Products
Sales Electric Power 22,342,322,648 98.51% 25,385,066,625 98.68% -11.99%
Labor income 110,563,280 0.49% 72,016,608 0.28% 53.52%
Steam income 69,753,251 0.31% 70,338,411 0.27% -0.83%
Comprehensive
65,549,708 0.29% 109,461,097 0.43% -40.12%
utilization of fly ash
Sales material
58,627,109 0.26% 61,632,082 0.24% -4.88%
income
Lease revenue 9,538,280 0.04% 11,071,005 0.04% -13.84%
Certified emission
reduction sales 164,291 0% 2,805,445 0.01% -94.14%
revenue
Other 24,601,455 0.11% 11,419,543 0.04% 115.43%
Area
Guangdong 22,654,178,908 99.88% 25,707,559,952 99.94% -11.88%
Yunnan 26,941,114 0.12% 16,250,864 0.06% 65.78%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating
Profit with Profit over 10%
√ Applicable □Not applicable
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
Industry
Electric power ,
Steam sales and 22,522,639,179 17,750,728,050 21.19% -11.77% -1.41% -8.28%
labor income
Products
Electric power ,
Steam sales and 22,522,639,179 17,750,728,050 21.19% -11.77% -1.41% -8.28%
labor income
Area
Guangdong 22,654,178,908 17,777,851,729 21.53% -0.06% -1.47% -8.28%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
Classification Items Unit 2016 2015 Changes
Sales volume Billion kwh 56.513 60.341 -6.34%
Electric Power
Production Billion kwh 59.923 64.091 -6.50%
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 22.342 billion yuan
taking up approximately 98.51% of annual sales. Company and company’s holding subsidiaries had signed a
Power Purchase Agreement with China Southern Power Grid and its holding subsidiaries in accordance to related
provisions. By the end of the reporting period, the agreement had been executed rightfully.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
(5)Component of business cost
Industry and product classification
In RMB
2016
Proportion in the Proportion in
Industry Items Increase/Decrease
Amount operating costs Amount the operating
(%) costs (%)
Electric Power Fuel cost 11,045,325,529 62.07% 11,319,013,763 62.70% -2.42%
Depreciation
Electric Power 3,897,930,880 21.91% 3,620,711,810 20.06% 7.66%
expense
Electric Power Labor cost 1,454,916,789 8.18% 1,402,718,794 7.77% 3.72%
Electric Power Other 1,395,453,184 7.84% 1,711,310,393 9.47% -18.46%
Notes
The Company is in power sector and mainly engaged in power generation at present. The cost is composed of
fuel cost, depreciation expenses, labour cost and other expenses. Fuel cost accounts for about 62.07% of total cost.
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes □No
New Subsidiary Establishment of the Year
Name Business Registered Nature Registered capital Proportion (%) Acquired
place address
Guangdong Yudean Yongan Natural gas Zhaoqing Zhaoqing Electric 100,000,000 90% Invested
Thermoelectric Co., Ltd. Power
Guangdong Yudean Pingyuan Wind Meizhou Meizhou Electric 30,000,000 100% Invested
power Co., Ltd. Power
Guangdong Yudean Heping Wind Power Heyuan Heyuan Electric 30,000,000 100% Invested
Co., Ltd. Power
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of the Company’s top 5 customers
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Total sales amount to top 5 customers (RMB) 22,559,545,563
Proportion of sales to top 5 customers in the annual
99.47%
sales(%)
Proportion of the sales volume to the top five customers
0.73%
in the total sales to the related parties in the year
Information of the Company’s top 5 customers
No Name Amount（RMB） Proportion
1 GPGC 22,342,322,648 98.51%
Guangdong Yudean Environmental
2 104,804,428 0.46%
Protection Co., Ltd.
3 Huizhou Huiling Huacheng Co., Ltd. 51,289,034 0.23%
Guangdong Yudean Group, Shajiao C Power
4 49,180,735 0.22%
Plant
5 Guangdong Yudean Yunhe Power Co., Ltd. 11,948,718 0.05%
Total -- 22,559,545,563 99.47%
Other explanation :
√Applicable □Not applicable
The Company with Guangdong Yudean Environmental Protection Co., Ltd., Guangdong Yudean Group Co., Ltd
Shajiao C Power Plant and Guangdong Yudean Yunhe Power Co., Ltd.are controlled by Yudean Group, where
relationship exists.
Principal suppliers
Total purchase of top 5 Suppliers（RMB） 9,862,571,084
Percentage of total purchase of top 5 suppliers In total
61.18%
annual purchase(%)
Proportion of purchase amount from the top 5 suppliers in
the total purchase amount from the related parties in the 45.01%
year
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
Guandong Electric power Industry Fuel
1 7,256,425,415 45.01%
Co., Ltd.
2 Guangdong Dapeng ING Co., Ltd 1,656,461,155 10.28%
Guangdong Zhutou Electric Power
3 477,428,457 2.96%
Industry Fuel Co., Ltd.
4 Energy China GPEC 262,991,754 1.63%
5 Guangdong Mingyang Wind Power 209,264,303 1.30%
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Industry Group Co., Ltd.
Total -- 9,862,571,084 61.18%
Other explanation :
√ Applicable □Not applicable
Guangdong Electricity Power Industrial Fuel Co., Ltd is the joint venture of the Company and Yudean Group Co.,
Ltd., where relationship exists.
3.Expenses
In RMB
Increase/Decrease(
2016 2015 Notes
%)
Sale expenses Due to the new power sales company
2,807,165 1,839,453 52.61%
sales costs incurred.
Administration expenses 775,880,023 921,738,681 -15.82%
Financial expenses 1,369,698,178 1,581,536,918 -13.39%
4.R& D Expenses
□ Applicable √ Not applicable
5.Cash Flow
In RMB
Items 2016 2015 Increase/Decrease(%)
Subtotal of cash inflow received
25,227,420,875 30,671,666,575 -17.75%
from operation activities
Subtotal of cash outflow
received from operation 16,522,645,057 20,229,229,430 -18.32%
activities
Net cash flow arising from
8,704,775,818 10,442,437,145 -16.64%
operating activities
Subtotal of cash inflow received
534,734,411 1,117,139,770 -52.13%
from investing activities
Subtotal of cash outflow for
3,315,903,498 5,456,331,056 -39.23%
investment activities
Net cash flow arising from
-2,781,169,087 -4,339,191,286 -35.91%
investment activities
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Subtotal cash inflow received
12,506,909,008 23,365,281,996 -46.47%
from financing activities
Subtotal cash outflow for
18,473,048,814 28,769,398,444 -35.79%
financing activities
Net cash flow arising from
-5,966,139,806 -5,404,116,448 10.40%
financing activities
Net increase in cash and cash
-42,533,075 699,129,411 -106.08%
equivalents
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
1.The cash inflow for investment activities deceased by 52.13% on year-on-year basis for the main reason of
receiving the amount disposing the oil shale company and Binlangjiang company within the previous report
period;
2.The cash inflow for investment activities deceased by 39.23% on year-on-year basis for the main reason of
payment decrease in cash for long-term assets purchase within the report period;
3. The net cash inflow caused by investment activities decreased by 35.91% for the main reason of receiving the
amount disposing the oil shale company and Binlangjiang company within the previous report period and
payment decrease in cash for long-term assets purchase within the report period;
4.The cash inflow for financing activities deceased by 46.47% for the main reason of the cash decrease obtained
from newly-added loans within the report period;
5. The cash inflow for financing activities deceased by 35.79% for the main reason of the cash decrease for the
loans repayment within the report period;
6. The net increase of the cash and cash equivalents decreased by 106% for the main reason of the decrease of the
net cash flow caused by operation and investment activities within the report period.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
√Applicable □ Not applicable
The main impact of non-cash outflow of assets, depreciation and amortization, interest expense of non-business
activities.
Ⅲ.Analysis of Non-core Business
□Applicable √Not applicable
Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2016 End of 2015
Proportion Notes to the significant
Proportion Proportion in the
Amount Amount increase/decrease change
in the total total assets(%)
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
assets(%)
Monetary fund 5,184,873,650 7.34% 5,237,406,725 7.28% 0.06%
Accounts
2,776,061,909 3.93% 2,484,683,890 3.45% 0.48%
receivable
Inventories 1,513,153,241 2.14% 1,333,654,623 1.85% 0.29%
Investment real
8,932,237 0.01% 9,567,835 0.01% 0.00%
estate
Long-term equity
5,432,637,750 7.69% 5,924,410,159 8.24% -0.55%
investment
Fixed assets 41,814,685,521 59.16% 44,330,167,621 61.64% -2.48%
Construction in
6,343,293,763 8.98% 5,613,398,840 7.81% 1.17%
process
Short-term loans 5,758,860,000 8.15% 6,288,060,000 8.74% -0.59%
Long-term loans 19,888,172,037 28.14% 21,303,229,910 29.62% -1.48%
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/loss on
Cumulative fair Impairment Purchased
fair value Sold amount in
Amount at year value change provisions in amount in the Amount at
Item change in the the reporting
recorded into the reporting reporting
beginning reporting period year end
equity period period
period
Financial assets
3.
Avaliable-for-sa
553,350,488 -133,614,180 164,407,692 419,736,308
le financial
assets
Subtotal of
553,350,488 -133,614,180 164,407,692 419,736,308
financial assets
Total 553,350,488 -133,614,180 164,407,692 419,736,308
Financial
0
Liability
Did 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
Not applicable
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
V.Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2016(RMB) Investment Amount in 2015(RMB) Change rate
857,880,000 1,761,257,008 -51.29%
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
Gain or Less Whether
Share Date of
Name of the Main Investm Investment Capital Investment Product Progress up to Balance or the to Involve
Proport Partner Disclosure Disclosure Index
Company Invested Business ent Way Amount Source Horizon Type Sheet Date Current in
ion % (Note 5)
Investment Lawsuit
Name of
The total construction Announcement :Announcement
progress for the wharf on External Investment
Guangdong Yudean Thermal October
Capital Electric project maritime work is
Bohe Coal-fired power,lo 300,000,000 100 % Ownfunds No Long-term -14,768,678 No （2012-45），Published in
increase power completed about 72% 31,2012
Power Co., Ltd gistics China Securities Daily,
and the power plant
project is not approved Securities Times and
http//.www.cninfo.com.cn
Name of
Guangzhou Guoye The gas combined heat Announcement :Announce
Kunsheng and power generation
GuangdongYudean Natural Electricp ment on External
Investment project was approved by
Huadu 广 Natural gas Capital ower July Investment
19,500,000 65 % Ownfunds Management Co., Long-term the Provincial -7,251,884 No
Gas Thermoelectric generati increase and 21,2015 （2015-39），Published in
Ltd( Development and
Co., Ltd. on steam China Securities Daily,
（Shareholding Reform Commission in
August 2016 Securities Times and
ratio：35%）
http//.www.cninfo.com.cn
Name of
The project company Announcement :Announce
Zhaoqing Hejiang was established in June ment on External
GuangdongYudean Natural Electricp
New Electric Power 2016 with 90% holding Investment
Yongan Natural Gas gas ower March
establis 90,000,000 90 % Ownfunds Development Co., Long-term and the land auction was -692,531 No
Thermoelectric Co., generati and 26,2016 （2016-08），Published in
hed Ltd.（Shareholding completed, which will
Ltd. on steam China Securities Daily,
ratio：10%） be reported and
approved in 2017. Securities Times and
http//.www.cninfo.com.cn
GuangdongHuizhou Natural CNOOC Refco Electricp The gas combined heat Name of
Natural Gas gas Capital Group Ltd ower and power generation April Announcement :Announce
131,570,000 67 % Ownfunds Long-term -- No
Thermoelectric Co., generati increase （Shareholding and expansion project 26,2013 ment on External
Ltd. on ratio：33%） steam commenced already and Investment
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
the usage amount in （2013-36），Published in
total was 800.4 million China Securities Daily,
yuan accounting for Securities Times and
22.8% of the total http//.www.cninfo.com.cn
investment planned for
the project.
Name of Announcement of
the Investment and
Invest in Heyuan Construction of Guangdong
Windpw Ziyuanzhang project Yudean Heping
Guangdong Wind June
er Capital Electricp through capital increase Ziyunzhang Wind Power
Power Generation 136,870,000 100 % Ownfunds No Long-term -- No
generati increase ower in Guangdong Wind 8,2016 Project . （2016-29），
Co., Ltd.
on Power company (49,500 Published in
kW) China Securities Daily,
Securities Times and
http//.www.cninfo.com.cn
Name of Announcement on
the Investment to the
Invest in Pingyuan
Construction of Guangdong
Windpw Maoping project
Guangdong Wind Yudean Pingyuan Maoping
er Capital Electricp through capital increase August
Power Generation 148,190,000 100 % Ownfunds No Long-term -- No Wind Farm Project
generati increase ower in Guangdong Wind 10,2016
Co., Ltd. （2016-34），Published in
on Power company (49,500
China Securities Daily,
kW)
Securities Times and
http//.www.cninfo.com.cn
Name of announcement of
Qujie and Shibanling
the Establishement of
wind power projects are
Guangdong Yudean Qujie
Windpw under smooth
Guangdong Yudean Wind power Generation
er Capital Electricp construction, which will October
Qujie Wind Power 31,750,000 100 % Ownfunds No Long-term -- No Co., Ltd. （2014-36），
generat increase ower be put into operation in 30,2014
Generation Co., Ltd. Published in
ion July and September of
China Securities Daily,
2017 respectively
Securities Times and
through prediction.
http//.www.cninfo.com.cn
Total -- -- 857,880,000 -- -- -- -- -- -- -22,713,093 -- -- --
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
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
In RMB
Book
Book
value
Cumulat Purchas value
Mode of balance Changes Sale
ive fair e Gain/los balance
Stock Initial accounti at the in fair amount Account Source
Security Security value amount s of the at the
Abbrevi investm ng beginni value of in the ing of the
category code changes in the reportin end of
ation: ent cost measure ng of the this this items shares
in this g period the
ment the period period
equity period reportin
reportin
g period
g period
Financia
Domesti Fair
l assets
c and Shenerg 235,837 value 419,268 -93,294, 90,136, 325,974 Own-Fu
600642 0 availabl
foreign y ,988 measure ,488 180 320 ,308 nds
e for
stocks ment
sales
Financia
Domesti Fair
Shenzhe l assets
c and 15,890, value 123,732 -37,170, 70,671, 86,562, Own-Fu
000027 n 0 availabl
foreign 628 measure ,000 000 372 000 nds
Energy e for
stocks ment
sales
Financia
Domesti Fair
l assets
c and 3,600,0 value 10,350, -3,150,0 3,600,0 7,200,0 Own-Fu
831039 NEEQ 0 availabl
foreign 00 measure 000 00 00 00 nds
e for
stocks ment
sales
-133,61
255,328 553,350 164,407 419,736
Total -- 4,180.0 0 0 0 -- --
,616 ,488 ,692 ,308
Disclosure date for the
notice of approval by the
Board (If any)
Disclosure date for the
notice of approval by
shareholders’ Meeting (If
any)
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
（2）Investment in Derivatives
□ Applicable √ Not applicable
Nil
5.Application of the raised capital
□ Applicable √ Not applicable
Nil
Ⅵ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable √ Not applicable
Nil
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 Company Sectors engaged Registered Operating
Total assets Net assets Turnover Net Profit
Name type in capital profit
Guangdong
Power
Yudean Jinghai
generation and
Power Subsidiary 2,919,272,000 9,910,493,715 3,743,272,973 4,045,943,116 577,720,074 417,511,874
power station
Generation Co.,
construction.
Ltd.
Shenzhen Power
Guangqian generation and
Subsidiary 2,208,887,157 1,502,158,756 1,604,671,158 327,240,158 244,841,209
Electric Power power station 1,030,292,500
Co., Ltd. construction.
Guangdong
Power
Guohua
Sharing generation and
Taishan Power 2,700,000,000 15,000,937,922 9,853,493,719 6,309,810,906 1,349,300,140 1,030,668,936
Company power station
Generation Co.,
construction.
Ltd.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Guangdong
Huizhou Power
Natural gas generation and
Subsidiary 2,571,419,546 1,585,681,817 1,651,548,233 277,017,314 205,238,001
Power power station 1,159,370,000
Generation Co., construction.
Ltd.
Guangdong Power
Red Bay Power generation and
Subsidiary 2,749,750,000 7,520,648,853 3,274,858,683 3,160,742,921 293,544,653 207,359,152
Generation Co., power station
Ltd. construction.
Guangdong
Yudean Electric Electric Power
Subsidiary 230,000,000 354,854,853 333,484,378 150,973,470 138,499,589 103,779,834
Power Sales sales
Co., Ltd.
Acquirement and disposal of subsidiaries in the Reporting period
√Applicable □ Not applicable
Way of acquiring and disposing of
Impact on the whole producing operation
Company name subsidiary corporations within the
and performance
reporting period
Zhaoqing Dinghu Natural Gas
Guangdong Yudean Yongan Natural Gas It was invested and established by the Thermoelectric project was in the early
Thermoelectric Co., Ltd. company. working stage, and the construction had
not yet started within the reporting period.
Pingyuan Maoping Wind Power Project
By the Company’s wholly-owned
Guangdong Yudean Pingyuan Wind Power was in the early working stage, and the
subsidiary of Guangdong Wind power
Generation Co., Ltd.（Indirect subsidiary） construction had not yet started within the
Generation Co., Ltd to set up investment.
reporting period.
Heping Ziyunzhang Wind Power Project
Guangdong Yudean Heping Wind Power By the Company’s wholly-owned
was in the early working stage, and the
Generatlion Co., Ltd, （Indirect subsidiary of Guangdong Wind power
construction had not yet started within the
subsidiary） Generation Co., Ltd to set up investment.
reporting period.
Overview of main share holding and share participating companies
（1）During the report period, the profits for the coal-fired power plant of the company decrease sharply on
year-on-year basis due to the electric quantity decrease, electricity price decrease and coal price increase; the
business losses occur in Zhongyue, Yuejiang, Yuejia and Dapu companies.
（2）The company holding subsidiary Jinghai, Guangqian company, Huizhou natural gas and Red Bay company
generation profits account for more than 10% of the company net profits, among which, the net profits for the
coal-fired units of Jinghai and Red Bay company decrease sharply on year-on-year basis due to the electric
quantity decrease, electricity price decrease and coal price increase; and the profits for coal-fired units for
Guangqian and Huizhou natural gas companies increase by 53.34 million and 6.25 million yuan respectively on
year-on-year basis.
（3）The company set up the wholly-owned electricity sales company in July 2015 and the electricity sales
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
company realized the net profit of 103.78 million yuan during the report period.
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
The competition is continuously pluralistic in Chinese power generation industry, Main power assets of the
company gather in Guangdong Province.The region there are many other power producers, and greater impact by
the west electricity send to the east. From the power supply aspect, the power demands increase slows down with
over capacity, the market competition intensifies and the coal-fired power unit utilization hours may decrease
continuously as a result of the preferential accessing to the grid policy of the clean energy. Affected by the policy
that clean power source is given priority to surf the internet, thermal power is relatively inferior in the competition
among power sources. The improvement of the clean power source in energy production and generating efficiency
poses a certain pressure on thermal power supply.
(II) Development strategy
Pursuing the concept of “creating green energy intentionally”, we will positively arrange and distribute clean
energies including wind power, hydropower, and gas power in the future and optimize power generation structure;
actively promote the thermal power project to develop large units and suppress small ones, conduct upgrading and
transforming, and promote power quality; strive to explore the power-sold side business, conform to the
reformation of electric power system and open up new business areas and development space;
During the “13th Five-year Plan”, the company insists the development concepts of innovation, coordination,
green, open and share; sticks to the development mode of innovation and upgrading and platform integration;
insists the two-wheel drive development of industrial and capital operation based on Guangdong, facing the whole
country and developing the international market; and strives to build the first-rate large-scale group electric listing
company at home with international competition, which integrate the traditional energy and new energy
generation.
(III) Production and operation plan
The company’s on-grid power budget target in 2017 is 58.261 billion KWH, and the expected investment is 561
million Yuan with main capital sources of company owned capital and bank loan.
(IV) The background and the countermeasures
Firstly, the unit utilization hours may decrease continuously. In 2017, it’s predicted that the social electricity
consumption in total within the province only increase by 4% on year-on-year basis with the growth falling to
1.53%; simultaneously, the installed capacity will be added with about 8.9 million KW within the province, the
provincial overall-arrangement installed capacity increases by 5.9% on year-on-year basis, and Yangjiang Nuclear
Power No. #4 Unit (1. 086 KW) and Taishan Nuclear Power No. 1 (1.75 kW) will be put into production within
the current year. Such factors above may result in the continuous decline of the unit especially the coal-fired unit
utilization hours.
Secondly, the market competition becomes intense day by day. In 2017, the provincial “market electricity” scale
will account for almost 20% of the overall electricity consumption of the society with increase by above 2 times
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
on year-on-year basis upon realization of 100 billlion KW, the newly-added combined heat and power generation
and Southeast surplus water and electricity also participate in bidding, the electricity sale price may decrease
sharply under the situation of oversupply. Simultaneously, the coal price trend is not positive and the operation
management is confronted with very large pressure.
Thirdly, the development limit needs breakthroughs urgently. Recently, the state cancelled and suspended the
check and building of a batch of coal power projects, the State Council Report on the Work of Government in
2017 will eliminate, suspend and stop the coal power capacity more than 50 million KW definitely within the year,
Provisional Regulations on Sewage Discharge Permit Management becomes effective at the same time, the
company’s anti-risk capacity is weak due to the coal power business structure. Although the company clean
energy business had a breakthrough in 2016, its proportion was still low and the main business development
potential is insufficient severely. At the same time, the company still needs substantive breakthroughs on
vitalizing the inventory assets and participating into the electric industry whole-industry chain especially at
aspects of the terminal competition and using the capital market for exploitation, etc.
In 2017, the company will still seek for development through changes in the reformation and market competition,
strive to find out the new profit increase points, open channels for investment and financing through many
methods, continue developing the clean energy sector, optimize the power structure and promote the main
business project with benefits. In the aspect of operation management, the company will continue strengthening
the marketing degree, participate in bidding scientifically and battle for the market electricity quantity share
positively; for the aspect of searching for new profit increase points, the company will research the investment
increment grid distribution business and energy storage equipment and expand further the power industry
whole-industry chains; speed up implementation of the power factory land resources development, explore the
utilization of other resources including the sea areas and wharfs, etc. and vitalize the inventory assets; strengthen
the capital operation, search for high and new technology project and high-end manufacture project based on main
direction of new energy, materials and technologies and explore for investment opportunities of high-quality
projects.
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
Reception time Way of reception Types of visitors Basic index
Details can be found in the Record Chart
of the Investor Relation Activity
March 4,2016 Onsite investigation Organization disclosed on Juchao
website(www.cninfo.com.cn) on 9
March 2016.
Details can be found in the Record Chart
of the Investor Relation Activity
June 13,2016 Onsite investigation Organization disclosed on Juchao
website(www.cninfo.com.cn) on 14 June
2016.
Details can be found in the Record Chart
June 28,2016 Onsite investigation Organization
of the Investor Relation Activity
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
disclosed on Juchao
website(www.cninfo.com.cn) on 29 June
2016.
Details can be found in the Record Chart
of the Investor Relation Activity
July 15,2016 Onsite investigation Organization disclosed on Juchao
website(www.cninfo.com.cn) on 20 July
2016.
Details can be found in the Record Chart
of the Investor Relation Activity
September 29,2016 Onsite investigation Organization disclosed on Juchao
website(www.cninfo.com.cn) on 29
September 2016.
Reception times
Reception agency amount
Reception personal number
Others
Whether to disclose, reveal or disclose non-public
No
material information
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
√Applicable□ Not applicable
The profit distribution policy in the Articles of Association of the company is as follows:
Article 155
The company highly valued the investors especially the reasonable investment returns for the small and
medium 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 of
dividends that allowed by the laws, but shall give the priority to the cash dividends distribution for profits
distribution. If it meets the conditions required for cash dividends distribution, then the company shall adopt the
cash dividends for the profits distribution.
(3) If the net profits attributable to shareholders of the parent company realized by the company in the year
are positive and the cumulative distributable profits in the end of the year are positive, the company shall
distribute dividends.
(4) The profits annually distributed by the company in cash dividends shall be not less than 10% of
distributable profits realized in the year, and the accumulative profits distributed in cash dividends in the most
recent three years shall be not less than 30% of the mean distributable profits realized in the most recent three
years. When the company carries out the profit distribution, the proportion of the cash dividends shall be not less
than 20% in the profits distribution.
(5) The company can carry out the interim profit distribution.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article
Yes
of Association (Yes/No)
Well-defined and clearly dividend standards and proportion
Yes
(Yes/No)
Completed relevant decision-making process and mechanism
Yes
(Yes/No)
Independent directors perform duties completely and play a
Yes
proper role (Yes/No) Y
Minority shareholders have ample opportunities and their
Yes
legitimate rights and interests are effectively protected (Yes/No)
Condition and procedures are compliance and transparent while
Yes
the cash bonus policy adjusted or changed (Yes/No)
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Statement on profit distribution plan and capitalization of capital reserve plan of the Company in nearly three
years (including the report period)
The company’s dividend distribution plan of the year 2016 was: Based on that the total share capital of the
company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.80 (tax
inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive) per
10 shares.
The company’s dividend distribution plan of the year 2015 was: Based on that the total share capital of the
company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 2.3 (tax
inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 2.3 (tax inclusive) per 10
shares.
The company’s dividend distribution plan of the year 2014 was: Based on that the total share capital of the
company is 4,375,236,655 shares, for A-share, the company will distribute cash dividends of RMB 2 (tax
inclusive) and two bonus shares per 10 shares; for B-share, the company will distribute cash dividends of RMB 2
(tax inclusive) and two bonus shares per 10 shares.
Cash dividend in latest three years
In RMB
Net profit
Ratio in net profit
attributable to the Amount of cash Proportion of cash
attributable to the
Cash dividend over of the parent dividends from cash dividends from cash
Year parent company in
(Including Tax) company in the offer to repurchase offer to repurchase
the consolidated
consolidated shares of the funds shares of the funds
financial statements
financial statements
2016 420,022,718.88 936,534,941 44.85%
2015 1,207,565,316.78 3,237,733,312 37.30%
2014 875,047,331 3,003,977,134 29.13%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□ Applicable √ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Distributing bonus shares for every 10 shares
(share)
Distributing cash dividend for every 10 shares (tax
0.80
included) (RMB)
Equity base for distribution preplan (share) 5,250,283,986
Total amount distribution in cash (RMB) (tax
420,022,718.88
included)
Profit available for distribution (RMB) 3,235,248,290
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Cash distributing accounted for the proportion of
100%
the total amount of profit distribution (％)
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 2016, the base number for the company’s net profits distribution is RMB935,959,061, plus the non-distributed profits of RMB
2,299,289,229 in the prior year, thus the upper limit of the distributable profits is RMB 3,235,248,290. According to the Articles of
Association of the company, draw RMB212,960,545 for the statutory surplus reserve taking for 10% of net profits, draw
RMB532,401,361 for the other surplus reserve taking 25% of the total net profits, then the upper limit of the distributable profits to
the shareholders is RMB2,489,886,384. The company's 2016 annual profits distribution plan is: Based on that the number of the
company’s total share capital at the end of 2016 is 5,250,283,986 shares, planned that the company will distribute cash dividends of
RMB0.80 (tax inclusive) to A-share shareholders and the company will distribute cash dividends of RMB 0.80 (tax inclusive) to
B-share shareholders, thus the total distribution of profits is RMB 420,022,718.88, the remaining undistributed profits will be
carried forward for the future years of profit distribution.
III.Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior
management personnel and other related parities.
√ Applicable □ Not applicable
Time of
Period of
Commitment making Fulfillmen
Commitment Type Contents commitme
maker commitme t
nt
nt
Commitment on
share reform
Commitment in the
acquisition report
or the report on
equity changes
Yue Dian Li is the only quoted platform of November Within 5 y
Yudean Group’s electricity asset integration 3, ears after t
within the boundary. ② Except Yue Dian Li and 2011 he complet
Commitment made Guangdong the electricity assets controlled by it, within 5 ion of maj Under
upon the assets Yudean Group years after the last recombination is done, Yudean or asset re fulfillmen
replacement Co., Ltd. Group will pump the assets which meet the organizatio t
conditions of launching after reformation into Yue n
Dian Li gradually through purchasing and
recombination and other ways, according to the
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
situation of solutions to different problems, e.g.
the imperfect examination and approval
procedures, the situation of profitability,
cooperation agreement and land utilization. ③
At the aspects of the development of power
project and assets purchasing, Yudean Group
provides the priority for Yue Dian Li choose. If
Yue Dian Li gives up development and
purchasing, Guangkong Group will join Yue Dian
Li under the situation that the project is
completed and put into production, and that the
purchase is done and the project meets the
conditions of listing.For details,
see June 5, 2014, published in the designated me
dia \"Announcement of Guangdong Electric Powe
r Development Co.,Ltd. matters related to commi
tments\".
Commitments in
initial public
offering or
re-financing
Equity incentive
commitment
Other To maintain the stability of the market, Yudean
Guangdong Under
commitments for Group promised not to reduce the Yudean electric July 8,
Yudean Group 12 months fulfillmen
medium and small power shares within the next 12 months.
Co., Ltd. t
shareholders
Completed on
Yes
time(Y/N)
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period, the company has assets or projects meet the original profit forecast made and the reasons
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.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
□ Applicable √ Not applicable
No particulars about the changes in aspect of accounting polcy, estimates or calculation method in the period.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the
period.
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 Business Registered Nature Registered Proportion (%) Acquired
place address capital
Guangdong Yudean Yongan Natural Zhaoqing Zhaoqing Electric 100,000,000 90% Invested
gas Thermoelectric Co., Ltd. Power
Guangdong Yudean Pingyuan Wind Meizhou Meizhou Electric 30,000,000 100% Invested
power Co., Ltd. Power
Guangdong Yudean Heping Wind Heyuan Heyuan Electric 30,000,000 100% Invested
Power Co., Ltd. Power
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs PWC Certified Public Accountants (special general partnership)
Remuneration for domestic accounting firm
(RMB’0000)
Continuous life of auditing service for domestic
accounting firm
Name of domestic CPA Wang Bin, Chen Junjun
Has the CPAs been changed in the current period
□ Yes √ No
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Whether to change the accounting firm during the audit
□ Yes √ No
Whether to perform the approval process during replacement of accounting firm
√ Yes □No
A detailed description of the situation of appointments and change of accounting firms
As KPMG Huazhen (special general partnership) employment period expired, the company re-employed the
accounting firm of annual audit through the open tendering in 2016. Based on results of the bid invitation and
evaluation, through deliberation of the 12th session of the 8th Board of Directors and approval of the 2 nd
extraordinary general meeting in 2016, Price Waterhouse Coopers Zhongtian Accounting Firm (special general
partnership) was employed as the audit agency for the company in 2016 with the standard service fee 3 million
yuan. Then if the newly-added subsidiary needs to entrust other companies with auditing, the service fee shall be
higher than the average level of the offer wining the bid.
Description of the CPAs, financial adiver or sponsor engaged for intemal control auditing
√Applicable □Not applicable
In the report year, the Company engaged PWC Certified Public Accountants (special general partnership)as the
certified public accountants and internal control audit body in 2016. The audit remuneration was RMB 3
million(Including subsidiary).
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.
XII.Significant lawsuits and arbitrations of the Company
□Applicable √ Not applicable
No significant lawsuits and arbitrations occourred in the reporting period.
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
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
XVI.Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
Nil
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
Nil
5. Other significant related-party transactions
√ Applicable □ Not applicable
（1）In 2016, daily related transactions were carried out after examination and approval by 2015 annual
shareholders' general meeting. Refer to (5) Related transactions of XII. Relationship between related parties and
the transactions between them of the Financial Report of this report for details.
(2) The Proposal on the Financial Services such as Making the Application of the Total Loan Limit of RMB 16
Billion and Handling the Deposit Settlement to the Related Party- Guangdong Yudean Finance Co., Ltd by the
Company and Some of its Subsidiaries was approved in the company’s 2015 annual general shareholder meeting
for implementation.
（3）The company’s share-controlling subsidiary of Guangdong Yudean Jinghai Power Generation Co., Ltd
(hereinafter referred to as Jinghai Company) purchases the capacity quota of the remaining shut-down power units
of 25,000 KW held by Guangdong Yuehua Power Generation Co., Ltd (hereinafter referred to as Yuehua
Company) in the amount of RMB 10 million had been approved in 2016 fourth communication meeting of the
eighth session board of directors for implementation.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
Daily related transaction announcement April 30,2016 http//www.cninfo.com.cn.
Announcement on the Company’s Related
Transaction of Guangdong Yudean Finance April 30,2016 http//www.cninfo.com.cn.
Co., Ltd.
Announcement on the Purchase of the
Capacity Quota of Shut-down Power Units by August 10,2016 http//www.cninfo.com.cn.
the Company’s Share-controlling Subsidiary
XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
□Applicable √ Not applicable
No any lease for the Company in the reporting period..
2.Guarantees
√Applicable □ Not applicable
（1）Guarantees
In RMB’0000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant Date of Actual Complete Guarantee
Amount of Guarantee
Name of the Company disclosure happening mount of Guarantee type implementa for
Guarantee term
date/No. of (Date of guarantee tion associated
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
the signing or not parties
guaranteed agreement) (Yes or no)
amount
Yunnan Baoshan
Binlangjiang Guaranteeing
May
Hydroelectricity 4,350 December 19,2007 2,610 of joint 15 years No No
24,2007
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
December
Hydroelectricity 4,350 November 30,2007 1,073 of joint 15 years No No
19,2007
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
November
Hydroelectricity 7,250 November 14,2008 1,276 of joint 12 years No No
12,2008
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
May
Hydroelectricity 9,367 June 22,2009 6,467 of joint 18 years No No
27,2009
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
May
Hydroelectricity 7,250 May 27,2009 3,625 of joint 15 years No No
27,2009
Development Co., liabilities.
Ltd.
Total actually amount of
Total amount of approved external
0 external guarantee in the -36,110
guarantee in the report period(A1)
report period(A2)
Total actually amount of
Total amount of approved external
external guarantee at the
guarantee at the end of the report 190,835 15,051
end of the report
period(A3)
period(A4)
Guarantee of the company for its subsidiaries
Guarante
Related Complete
Date of Actually e for
Name of the company announcem Amount of Guarantee implemen
happening(date of guarantee Guarantee type related
guaranteed ent date guarantee term tation or
signing agreement) amount party(yes
and no. not
or no)
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Zhanjiang Wind Guaranteeing
April
Power Generation Co., 18,571.7 October 9,2010 13,959.14 of joint 18 years No No
29,2009
Ltd. liabilities.
Guangdong Shaoguan Guaranteeing
November
Yuejiang Power 9,000 January 28,2014 6,750 of joint 7 years No No
16,2013
Generation Co., Ltd. liabilities.
Guangdong Shaoguan Guaranteeing
November
Yuejiang Power 8,100 January 29,2014 5,850 of joint 7 years No No
16,2013
Generation Co., Ltd. liabilities.
Total of actual guarantee
Total of guarantee for subsidiaries
0 for subsidiaries in the -13,359.63
approved in the period(B1)
period (B2)
Total of actual guarantee
Total of guarantee for subsidiaries
141,536 for subsidiaries at 26,559.14
approved at period-end(B3)
period-end(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
The Company’s total guarantee(i.e.total of the first three main items)
Total amount of guarantee
Total guarantee quota approved in actually incurred in the
0 -49,469.63
the reportingperiod（A1+B1+C1） reporting period
（A2+B2+C2）
Total balance of the actual
Total guarantee quota already
guarantee at the end of the
approved at theendof the 332,371 41,610.14
reporting period
reporting period（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the
1.78%
netassetsof the Company (that is A4+B4+C4）%
Including：
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 27,651
70% directly or indirectly（E）
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Total guarantee Amount of the abovementioned guarantees
27,651
（D+E+F）
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. Other significant contract
□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.
XVIII.Social responsibilities
1.Overview of the annual targeted poverty alleviation
（1）Precise poverty alleviation
Within the report period, the company implements carefully the scheme of “targeted poverty alleviation and
overcoming in three years” in Guangdong, organize positively the manpower, material and financial resources
into the poverty-relief work, and six subsidiaries conduct positively the targeted poverty alleviation and
counterpart-assistance work and achieve good social benefits, which include Yuejiang, Red Bay, Jinghai,
Zhenneng, Zhanjiang and Dapu, etc.
（2）Information of the listed company’s annual work in targeted poverty alleviation
Index Measurement unit Quantity / Status
I. General situation —— ——
Thereinto： 1.Capital Million 58.01
2. Cash supplies Million 1.4
3. Ecological protection to poverty alleviation Person
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
（3）Subsequent targeted poverty alleviation program
The year 2017 is the critical year as the connection link for “targeted poverty alleviation and overcoming in three
years”. The company and holding subsidiaries will continue implementing the province, city and county’s relevant
regulations on the targeted poverty alleviation, and find out ways for targeted poverty alleviation based on the
local conditions. Firstly, insist the party and style construction, promote the ideological building of the assistance
object village “two committees” members and intensify the results of “two studies and one action” learning
activity. Secondly, insist study and improve capacity, insist the thorough learning on the spirit of Xi Jinping series
important speeches, the spirit of relevant targeted poverty alleviation papers, the village business knowledge and
the way to communicate with the public and improve further the work capacity for people. Thirdly, intensify the
key points and promote the implementation, each poverty alleviation work team will continue focusing on the
targeted poverty alleviation, grasp the poverty alleviation central work and coordinate overall and implement
relevant work. For the poor households poverty alleviation projects and village group projects listed in the filing
and issuing cards, obtain positively support from relevant authority subject to the formulated target tasks, assist
the assistance object villages and poor households in implementing the poverty alleviation projects and guarantee
the overall completion of the poverty alleviation target tasks in the practical style.
2. Information of performance of other social responsibilities
For details, please see the Social Responsibility Report disclosed by the company on the same day.
http://www.cninfo.com.cn
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
Yes
Excessi
Main Emission
Emissi ve
Company or pollutant port Implemented Verified
Emission on port Emission Total emissio
subsidiary and specific distributio pollutant emission total
way numbe concentration emission n
name pollutant n standards emission
r conditi
name condition
on
Emission Standard 1485.98
Smoke 11.11mg/Nm3 252.78 ton
Concentrat of Air Pollutants ton
ed for Thermal Power
Shajiao A power 2 within the 5910.79
SO2 emission 27.34mg/Nm3 Plants 621.71 ton No
plant factory ton
through (GB13223-2011)
chimney special emission 10472.84
NOX 40.28mg/Nm3 916.01 ton
limit ton
Smoke 4.9mg/m3 Emission Standard 56.2 ton 593 ton
Concentrat
of Air Pollutants
SO2 ed 20.0mg/m3 195.9 ton 1447 ton
Dapu Power 2 within the for Thermal Power
emission No
Plant factory Plants
through
NOX 30.5mg/m3 (GB13223-2011) 275.1 ton 1502 ton
chimney
special emission
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
limit
Smoke 9.73mg/Nm3 Emission Standard 166.85 ton 765 ton
Concentrat of Air Pollutants
1416.83
Zhanjiang SO2 ed 82.70mg/Nm3 for Thermal Power 2046 ton
within the ton
Tiaoshun Power emission 1 Plants No
factory
plant through (GB13223-2011)
NOX chimney 54.46mg/Nm3 special emission 916.36 ton 1587 ton
limit
9.9 mg/Nm
（#10、#11
unit）
Smoke 130.22 ton --
4.0 mg/Nm3
（#1、#2 unit）Emission Standard
Concentrat 110 mg/Nm3 of Air Pollutants
#1、#2、#10、 （#10、#11
ed for Thermal Power 1054.28
#11 unit SO2 within the unit） 3465 ton
emission 2 Plants ton No
Shaoguan Power factory 17 mg/Nm3
through (GB13223-2011)
Plant （#1、#2 unit）
chimney special emission
115 mg/Nm3
limit
（#10、#11
1202.01
NOX unit）34 3465 ton
ton
mg/Nm3（#1、
#2 unit）
Smoke 7mg/Nm3 Emission Standard 115.51 ton 5800 ton
Concentrat of Air Pollutants
1062.64
SO2 ed 55mg/Nm3 for Thermal Power 3053 ton
Zhanjiang Power within the ton
emission 2 Plants No
Plant factory
through (GB13223-2011)
NOX chimney 47mg/Nm3 special emission 815 ton 3115 ton
limit
Smoke 6.82mg/Nm3 Emission Standard 286.5 ton --
Concentrat of Air Pollutants
SO2 61.28mg/Nm3 2574.2 ton --
ed for Thermal Power
Huilai Power within the
emission 2 Plants No
plant factory
through (GB13223-2011)
NOX 52.29mg/Nm3 2196.7 ton --
chimney special emission
limit
Smoke 11.14mg/Nm3 Emission Standard 285.33 ton 287.57 ton
Concentrat
of Air Pollutants
ed
1463.27 1479.29
Shanwei Power SO2 within the 52.40mg/Nm for Thermal Power
emission 2 ton ton No
plant factory Plants
through
(GB13223-2011) 1181.10
NOX chimney 42.84mg/Nm3 --
special emission ton
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
limit
Smoke 11.34mg/Nm3 Emission Standard 168.06 ton 370 ton
Concentrat of Air Pollutants
#5、#6、#7 Unit SO2 41.34mg/Nm3 389.38 ton 3205 ton
ed for Thermal Power
Maoming within the
emission 2 Plants No
thermal power factory
through (GB13223-2011)
Plant NOX 45.99mg/Nm3 693.96 ton 4000 ton
chimney special emission
limit
Smoke 8.845mg/Nm3 Emission Standard 183.16 ton --
Concentrat of Air Pollutants
SO2 15.16mg/Nm3 380 ton 2085 ton
ed for Thermal Power
Pinghai Power within the
emission 2 Plants No
plant factory
through (GB13223-2011)
NOX 36.08mg/Nm3 788.36 ton --
chimney special emission
limit
Emission Standard
Concentrat of Air Pollutants
ed for Thermal Power
Qianwan LNG within the
NOX emission 3 3.37mg/Nm Plants 495.79 ton -- No
power plant factory
through (GB13223-2011)
chimney special emission
limit
Emission Standard
Concentrat of Air Pollutants
ed for Thermal Power
Huizhou LNG within the
NOX emission 3 35mg/Nm3 Plants 705 ton -- No
power plant factory
through (GB13223-2011)
chimney special emission
limit
Prevention and control of pollution facilities construction and operation
Within the report period, the company responds positively to requirements of the newest environmental protection
policies, strengthens the operation adjustment of the desulfurization and denitrification system and equipment
maintenance management, intensifies the transformation of the energy-saving technologies and dust-cleaning
equipment, improves the equipment operation efficiency, decrease the smoke and dust discharging concentration
and guarantee compliance of each pollutant emission with the national and local environmental protection
requirements. In accordance with the national environmental protection plan, each power plant of the company
implements positively requirements of Coal-fired Power Energy Saving and Emission Reduction Upgrading and
Transform Action Plan (2014-2020) and National Energy Administration Comprehensive Division Notice about
Decomposition and Implementation of Coal-fired Power Energy Saving and Emission Reduction Upgrading and
Transform Target Tasks, etc. and promotes the ultra-low emission transformation project.
Whether release social responsibility Report
√ Yes □No
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Corporate social Responsibility Report
Whether contain Staards in the released report
Whether contain
Whether contain corporate
Enterprise nature Environmental
social information governance Domestic standards Foreign standards
information
information
The Shenzhen stock
Exchangelisting corporation
“social responsibility
State-owned
Yes Yes Yes guidelines”, Chinese GRI
enterprise
Academy of Social Sciences
guidelines for the preparation
of CSR reports
Specific description
1.Whether the company has passed the environmental
Yes
management system certification（ISO14001）
2.Investment and expense for the annual environmental
100,516.98
protection of the Company（RMB’0000）
3.Performance for the three wastes(Industrial wastewater,
Standard
wastegases and residues)emission reduction of the Company
4. Company investment in the employee personal knowledge and
skills improvement to improve the employee occupational 1,799.16
development capacity（RMB’0000）
5. Company donation amount for public welfare (capital, goods
326.99
and materials and free professional service)（RMB’0000）
XIX.Major issues of subsidiary
□ Applicable √ Not applicable
Nil
XX. Material issues of the subsidiaries
√Applicable □ Not applicable
The company holding subsidiary Guangdong Yudean Pinghai Power Plant Co., Ltd. received Written Decision of
Administrative Penalty (YHZCF [2016] No. 019) issued by Guangdong Ocean &Fishery Administration on
November 14, 2016, in which, Pinghai company was subject to the penalty decision that “return and recover the
illegal occupied sea area and pay the fine ten times of the payable for the sea area utilization based on the area
16.3947 ha. for the period of illegal occupation, namely One Hundred and Seventy Two Million One Hundred and
Forty Four Thousand Three Hundred and Fifty yuan only (RMB 172,144,350.00).” due to the violation of Article
III of Law of the People's Republic of China on the Management of Sea Areas Use by the action that Pinghai has
conducted Pinghai plant site levelling and bank protection project with land reclamation area of 16.3947 ha.
without approval. Based on the net profit 3.238 billion yuan belonging to the parent company shareholders
through audit in the previous year, the above administrative penalty involving amount will influence the net profit
belonging to the parent company shareholders by 77.40 million yuan or so accounting for about 2.39% of net
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
profit of the latest period through audit, which will not constitute the major influence on the company.
Pinghai Company refused to obey the penalty measure in Written Decision of Administrative Penalty and applied
the administrative reconsideration from Guangdong People’s Government subject to Article IV in Administrative
Reconsideration Law of the People's Republic of China on January 16, 2017. Until the report disclosure date, the
administrative penalty was still under negotiation and coordination among many parties. In accordance with
Agreement for Assets Purchase through Issuing Shares concluded between Yuedian group and the company in 2012, Yuedian group
will compensate the company for the actual losses caused by the event above subject to the result of the administrative
reconsideration of lawsuit for the penalty event above.
Guangdong Electric Power Development Co., Ltd. 2016 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 change Increase/decrease（+，-） After the Change
Amount Proportio Capitalizatio
Share Bonus Proportio
n n of common Other Subtotal Quantity
allotment shares n
reserve fund
I. Share with conditional
1,897,966,823 36.15% 1,897,966,823 36.15%
subscription
2. State-owned legal
1,893,342,621 36.06% 1,893,342,621 36.06%
person shares
3.Other domestic shares 4,624,202 0.09% 4,624,202 0.09%
Of which：Domestic
4,620,666 0.09% 4,620,666 0.09%
legal person shares
Domestic natural person
3,536 0.00% 3,536 0.00%
shares
II. Shares with
unconditional 3,352,317,163 63.85% 3,352,317,163 63.85%
subscription
1.Common shares in
2,553,909,163 48.64% 2,553,909,163 48.64%
RMB
2.Foreign shares in
798,408,000 15.21% 798,408,000 15.21%
domestic market
III. Total of capital
5,250,283,986 100% 5,250,283,986 100%
shares
Reasons for share changed:
□ Applicable √ Not applicable
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
□ Applicable √Not applicable
Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
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 Share
Total
preferred shareh
Total number The total number o
Total olders at the end
of common f preferred shareho
shareholders at of the month
shareholders at lders voting rights
110,115 the end of the 108,483 0 from the date of
the end of the restored at period-e
month from the disclosing the
reporting nd(if any)(See
date of disclosing annual report(if
period Notes 8)
any)(See Notes
8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of
Proportio share
Number of Changes in Amount of Amount of
Shareholders Nature of n of pledged/froz
shares held at reporting restricted un-restricted
shareholder shares en
period -end period shares held shares held
held（%） State Amo
of unt
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
share
Guangdong Yudean State-owned legal
67.39% 3,538,005,285 1,893,342,621 1,644,662,664
Group Co., Ltd. person
China Securities Finance State-owned legal
2.78% 145,748,980 145,748,980
Co., Ltd. person
Guangdong Guangfa
State-owned legal
Electric Power 2.22% 116,693,602 116,693,602
person
Investment Co., Ltd.
Guangdong Electric
State-owned legal
Power Development 1.80% 94,367,341 94,367,341
person
Corporation
Domestic Natural
Li Zhuo 0.41% 21,362,585 7,360,417 21,362,585
person
BBH A/C VANGUARD
EMERGING Overseas Legal
0.33% 17,484,844 1,809,700 17,484,844
MARKETS STOCK person
INDEX FUND
Domestic
Harbin Daoli District
Non-State owned 0.29% 15,441,308 11,613,695 15,441,308
Charity Foundation
legal person
CHINA INT'L
CAPITAL CORP Overseas Legal
0.29% 15,322,336 -360,000 15,322,336
HONG KONG person
SECURITIES LTD
NOMURA Overseas Legal
0.24% 12,599,843 12,599,843
SINGAPORE LIMITED person
Central Huijin Assets State-owned legal
0.23% 12,258,200 12,258,200
Management Co., Ltd. person
Strategy investors or general legal person
becomes top 10 shareholders due to rights Not applicable
issued (if applicable)（See Notes 3）
The fourth largest shareholder Guangdong Electric Power Development Corporation is
Explanation on associated relationship the wholly-owned subsidiaries of the largest shareholder Yudean Group. These two
among the aforesaid shareholders companies have relationships; whether the other shareholders have relationships or
unanimous acting was unknown.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Name of the shareholder
reporting period Share type Quantity
Guangdong Yudean Group Co., Ltd. 1,644,662,664 RMB Common
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
shares
RMB Common
China Securities Finance Co., Ltd. 145,748,980
shares
Guangdong Guangfa Electric Power RMB Common
116,693,602
Investment Co., Ltd. shares
Guangdong Electric Power RMB Common
94,367,341
Development Corporation shares
RMB Common
Li Zhuo 21,362,585
shares
Foreign shares
BBH A/C VANGUARD EMERGING placed in
17,484,844
MARKETS STOCK INDEX FUND domestic
exchange
Harbin Daoli District Charity RMB Common
15,441,308
Foundation shares
Foreign shares
CHINA INT'L CAPITAL CORP placed in
15,322,336
HONG KONG SECURITIES LTD domestic
exchange
Foreign shares
placed in
NOMURA SINGAPORE LIMITED 12,599,843
domestic
exchange
Central Huijin Assets Management RMB Common
12,258,200
Co., Ltd. share
Explanation on associated relationship
or consistent action among the top 10
The fourth largest shareholder Guangdong Electric Power Development Corporation is the
shareholders of non-restricted
wholly-owned subsidiaries of the largest shareholder Yudean Group. These two companies
negotiable shares and that between the
have relationships; whether the other shareholders have relationships or unanimous acting
top 10 shareholders of non-restricted
was unknown.
negotiable shares and top 10
shareholders
The Fifth largest shareholder Li Zhuo holds 21,074,665 A shares of the Company through
stock account with credit transaction and guarantee and holds 287,920 A shares through
Explanation on shareholders ordinary stock account, hold 21,362,585 shares of the Company's stock totally.
participating in the margin trading The Seventh largest shareholder Harbin Daoli District Charity Foundation holds 14,696,015
business(if any )(See Notes 4) A shares of the Company through stock account with credit transaction and guarantee and
holds745,293 A shares through ordinary stock account, hold 15,441,308 shares of the
Company's stock totally.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
Legal
Name of the Controlling Date of
representative/ Organization code Principal business activities
shareholder incorporation
Leader
Management and sales of the electricity
investment construction operation
management，electricity power(Thermal
Power)，
Guangdong Yudean Group August
Li Zhuoxian 91440000730486022G The industry of transportation resources
Co., Ltd. 3,2001
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
Not applicable
listed companies held or
partly held by it in the
report period
Change of the actual controller in the reporting period
□Applicable √Not applicable
Nil
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the controlling Date of
representative/per Organization code Principal business activities
shareholder establishment
son in charge
State-owned Assets supervision As the special institution directly
and administration Commission subordinate to Guangdong
of Guangdong Li Cheng June 26,2006 114400007583361658 Provincial People's Government,
Provincial People’s performed the obligation of
Government provincial state-asset contributor
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
entrusted by the provincial
government.
Equity of other
domestic/foreign listed
company with share
controlling and share Not applicable
participation by
controlling shareholder in
reporting period
Changes of the actual controller in the reporting period
□Applicable √Not applicable
No Changes of the actual controller in the reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
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% shareheld
□Applicable √Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring
Party and Other Commitment Subjects
□Applicable √Not applicable
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
VII. Situation of the Preferred Shares
□ Applicable √Not applicable
The Company had no preferred shares in the reporting period.
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Amount of Amount of
shares shares
Shares held Other Shares
Starting Expiry increased at decreased at
Office at the changes held at the
Name Positions Sex Age date of date of the the
status year-begin( increase/ year-end(s
tenure tenure reporting reporting
share) decrease hare)
period(share period(share
) )
Huang Board In August May
Male 54
Zhenhai chairman office 25,2016 20,2017
In December May
Li Yanxu Director Male 50
office 30,2016 20,2017
Hong In May May
Director Male 59
Rongkun office 16,2002 20,2017
Gao In April May
Director Male 59
Shiqiang office 29,2005 20,2017
Li In May May
Director Male 52
Mingliang office 18,2011 20,2017
In December May
Xu Ping Director Male 53
office 30,2016 20,2017
Yang In May May
Director Male 54
Xinli office 20,2014 20,2017
Yao In May May
Director Male 51
Jiheng office 20,2014 20,2017
Yao General In January May
Male 51
Jiheng Manager office 16,2014 20,2017
Zhang In May May
Director Male 51
Xueqiu office 20,2014 20,2017
Zhang Director In Male 50 May May
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Xueqiu office 18,2011 20,2017
Independent In May May
Liu Tao Male 45
director office 18,2011 20,2017
Zhang Independent In December May
Male 51
Hua director office 8,2011 20,2017
Independent In May May
Sha Qilin Male 56
Supervisor office 20,2014 20,2017
Mao Independent In May May
Male 53
Fugen Supervisor office 20,2014 20,2017
Shen Independent In May May
Female 49
Hongtao Director office 20,2016 20,2017
Independent In May May
Wang Xi Male 46
Director office 20,2016 20,2017
Chairman of
Zhang the In August May
Male 55
Dewei Supervisory office 14,2012 20,2017
Committee
In May May
Zhao Li Supervisor Female 44
office 18,2011 20,2017
Zhu Independent In May May
Male 59
Weiping Supervisor office 20,2014 20,2017
Jiang Independent In May May
Male 48
Jinsuo Supervisor office 20,2014 20,2017
Lin Employee In May May
Male 48 4,716 4,716
Weifeng supervisor office 15,2002 20,2017
Employee In May May
Li Qing Male 39
supervisor office 20,2014 20,2017
Yang In January May
Deputy GM Male 51
Xuanxing office 16,2014 20,2017
Deputy GM,
Li In September May
Finance Female 45
Xiaoqing office 12,2006 20,2017
manager
In July May
Liu Hui Deputy GM Female 51
office 28,2010 20,2017
Board In October May
Liu Wei Male 37
secretary office 24,2006 20,2017
Li Board Retire May August
Male 53
Zhuoxian chairman d 7,2015 25,2016
Zhong Director Retire Male 60 April November
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Weimin d 29,2006 8,2016
Kong Retire May February
Director Male
Huitian d 26,2010 8,2017
Retire May February
Hu xiaolei Director Male
d 20,2014 8,2017
Ding Independent Retire May May
Male
Yougang Director d 20,2014 20,2016
Independent Retire May May
Lu Jun Male
Director d 20,2014 20,2016
Total -- -- -- -- -- -- 4,716 0 0 4,716
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Li Zhuoxian Former chairman Retired August 25,2016 Job changes
Through the first provisional Shareholders meeting of the
Appoint and Company in 2016 elected as a director of the Compamy,
Huang Zhenhai Board chairman August 25,2016
dismiss Throuth the 13th meeting of the Eighth Board of Directors
of the Company eleted as the Company chairman..
November
Zhong Weimin Original director Retired Retired
8,2016
Through the third provisional Shareholders meeting of
Appoint and December
Li Zhuoxian Director the Company in 2016 elected as a director of the
dismiss 30,2016
Compamy,
Through the third provisional Shareholders meeting of
Appoint and December
Xu Ping Director the Company in 2016 elected as a director of the
dismiss 30,2016
Compamy,
Original
Ding Yougang IndependentDire Retired May 20,2016 Personal reasons
ctor
Original
Lu Jun IndependentDire Retired May 20,2016 Personal reasons
ctor
IndependentDire Appoint and Through the Shareholders meeting of the Company in
Shen Hongtao May 20,2016
ctor dismiss 2015 elected as a Indepentment director of the Compamy,
IndependentDire Appoint and Through the Shareholders meeting of the Company in
Wang Xi May 20,2016
ctor dismiss 2015 elected as a Indepentment director of the Compamy,
Kong Huitian Original director Retired February 8,2017 Retired
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Hu Xiaolei Original director Retired February 8,2017 Job changes
III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
Mr. Huang Zhenhai: male, born in November 1962, member of the Communist Party of China, Han nationality,
Guangdong Dapu people, college degree, senior engineer. He had served as deputy director of inspection
department of Guangdong Commodity Inspection Bureau, vice-president of China Certification & Inspection
(Group) Co., Ltd, president and general manager of the Testing Technology Co., Ltd of China Certification &
Inspection (Group) Co., Ltd, served as president, general manager, deputy secretary of party committee and other
positions of Guangdong Holdings Limited. Currently, he is the president, general manager and deputy secretary of
party committee of Guangdong Yudean Group.
Mr. Li Yanxu, born in March 1966, Bachelor of engineering and Master of engineering of Taiyuan University of
Technology, Doctor of science of Shanxi Coal-Chemistry Research Institute of Chinese Academy of Sciences,
professor. Currently, he is the director, the deputy party secretary and the direct party secretary of Guangdong
Yudean Group Co., Ltd. He had served as deputy dean of school of environmental science and Engineering of
Guangdong University of Technology, director, member of the party committee and organizational minister of
laboratory and equipment management department of Guangdong University of Technology,
Mr. Hong Rongkun, born in September 1957. Huazhong Institute of Technology. Senior engineer. He is currently
the director, deputy general manager and party committee member of Guangdong Yudean Group Co., Ltd. He
served as Deputy Director of Maoming Thermal Power Plant, Deputy Director and Deputy Chief Engineer of
Health Technology Bureau of Guangdong Electric Power Industry Bureau, Director ,Deputy General Manager
and member of the party committee of Guangdong Yudean Asset Management Co., Ltd.
Mr. Gao Shiqiang, born in December 1957. South China Institute of Technology,college degree, South China
University of Technology Master of Engineering. Senior engineer. He is currently the director, deputy general
manager and party committee member of Guangdong Yudean Group Co., Ltd. Former director of the Heyuan
Electric Power Industry Bureau; Shanwei Electric Power Industry Bureau Secretary and party secretary;
Guangdong Electric Power Group Company Director; Guangdong Province Yudean Group Co., Ltd. Party
committee member, deputy chief engineer and strategic development minister, Yudean environmental protection
Project management company general manager; Guangdong Yudean Group Co., Ltd. director, deputy general
manager, party committee member and general legal adviser.
Mr. Li Mingliang, born in September 1964. Xi'an Jiaotong University Bachelor of Engineering, South China
University of Technology Master of Engineering. Senior engineer (professor level). He is currently the director,
deputy general manager and party committee member of Guangdong Yudean Group Co., Ltd. Former Zhuhai
power plant deputy director, director, party secretary; Guangdong Yudean Group Co., Ltd. Party committee
member, deputy chief engineer and human resources minister.
Mr. Xu Ping was born in October 1963, bachelor and master of management of Xiamen University, senior
accountant. Currently, he is the vice general manager of Guangdong Yudean Group Co., ltd. He had served as
deputy director, director of finance management section of finance department of Huaneng International Power
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Development Corporation; and he had served as chief accountant of Huaneng Shijiazhuang Branch, chief
accountant of Huaneng Shang An Power plant, deputy manager of finance department of Huaneng International
Power Development Corporation; manager of finance department of Huaneng International Power Development
Corporation; vice general manager, deputy secretary of party committee, general manager of Great Wall Securities
Co., Ltd and director of asset management department of China Huaneng Group.
Mr. Yang Xinli, born in October 1962. Xi'an Jiaotong University Bachelor of Engineering, North China Electric
Power Institute Beijing Graduate Department of Engineering Master. Senior engineer. He is currently the deputy
general manager and member of the Party committee of Guangdong Yudean Group Co., Ltd. He served as Deputy
Director of Electric Power Department of Guangdong Provincial Economic and Trade Commission, Deputy
Director of Comprehensive Utilization Department of Electric Power and Resources, Director of Electric Power
Energy Department, Director of Personnel Training Department; Director of Personnel Department of Guangdong
Provincial Economic and Information Technology Commission.
Mr. Yao Jiheng, born in November 1965. Zhejiang University Bachelor of Engineering, Master of Engineering,
Cheung Kong Graduate School of Business Administration Master of Business Administration. Senior engineer
(professor level). He is currently a member of the Party Committee of Guangdong Yudean Group Co., Ltd. and
general manager of Guangdong Electric Power Development Co., Ltd. Former director of the Yunfu Power Plant;
Huangpu Power Plant assistant, deputy director; Shajiao A power plant director, party secretary; Guangdong
Yudean Group Co., Ltd. Party committee member, deputy chief engineer and safety supervision and production
technology Minister of Guangdong Yudean Group Co., Ltd., deputy chief engineer and general manager of
Guangdong Electric Power Development Co., Ltd.
Mr. Zhang Xueqiu, born in January 1966. Bachelor of Science, Xiangtan University, Master of Management, Jinan
University. Senior economist. He is currently the Deputy General Manager and Secretary of the Board of Directors
of Guangzhou Development Group Co., Ltd. He was the general manager of Guangzhou Development Group Co.,
Ltd.
Mr. Liu Tao, born in March 1971. Doctor of Law, Wuhan University. A lawyer. He is currently the director of
Guangdong Junhou Law Firm, concurrently the representative of Guangdong Provincial People's Congress, the
member of the Legislative Affairs Committee of Guangdong Provincial People's Congress, the supervisor of
petition and supervisors of Guangdong Provincial Higher People's Court, the appraiser of special case, the
part-time teacher of Guangdong Branch of the State Prosecutor's College, Deputy Director of the Lawyers
Association, Arbitrator of the Guangzhou Arbitration Commission, Independent Director of Guangdong Electric
Power Development Co., Ltd.
Mr. Zhang Hua, born in March 1965. Master of Economics, Jiangxi University of Finance and Economics.
Economist. He is currently the Deputy General Manager of Guangzhou Deduan Investment Co., Ltd. and Deputy
General Manager of Shenzhen Dongying Ruitong Investment Management Partnership (Limited Partnership), and
is an independent director of Guangzhou Yuyin Technology Co., Ltd. and Guangdong Electric Power
Development Co., Ltd.
Mr. Sha Qilin, born in October 1960. Master of Wuhan Institute of Technology. Associate Professor, practicing
lawyer. He is currently a lawyer of Guangdong Nanguo Desai Law Firm, member of the Professional Committee
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
of Financial and Securities of Guangzhou Lawyers Association, and concurrently an independent director of
Guangdong Electric Power Development Co., Ltd. He was an associate professor of Wuhan Institute of
Technology (now Wuhan University of Technology), head of investment and development department of China
Huandao Group Company, deputy chief engineer of group and chief manager of overseas listed leading group.
Mr. Mao Fugen, born in October 1963. Doctor of Economics, Xiamen University. He is currently a professor of
Xiamen University, and has been a professor of Xiamen University and other universities. He is also an
independent director of Xiamen International Trade Group Co., Ltd., Zhejiang Aokang Shoes Co., Ltd. and
Guangdong Electric Power Development Co., Ltd.
Ms. Shen Hongtao, was born in August 1967, PhD of management of Xiamen University, professor, doctoral
supervisor. Currently, she is a professor in accounting department of Jinan University, and concurrently serves as
member 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.,Ltd
and independent director of Guangdong Electric Power Development Co.,Ltd. She had served as deputy section
head of Guangdong Provincial People's Government, consultant of PwC International and vice president of
International College of Jinan University.
Mr. Wang Xi, was 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
School of Yat-sen University and Director of Institute of Economic Research of Yat-sen University, concurrently
serves as editorial board member of The World Economy of Chinese Academy of Social Sciences, Deputy
Secretary-General and Standing member of China Institute of International Finance, Standing member of China
Society of World Economics, financial consulting expert of Guangdong Provincial People's Congress Standing
Committee, independent director of Palm Garden Co.,Ltd, independent director of Guangzhou Securities Co.,Ltd,
independent director of Zhuhai Rural Commercial Bank and independent director of Guangdong Electric Power
Development Co.,Ltd. He had served as cadre of Agricultural Bank of China Guangdong Branch, manager of the
investment department of Hainan Trust and Investment Corporation, deputy director of the Finance Department of
Lingnan School of Yat-sen University, director and vice president of International Business Department of
Lingnan School of Yat-sen University.
Mr.Zhang Dewei, born in January 1961. Guangzhou Normal University Bachelor of Science, Jinan University
Master of Business Administration. Senior economist. He is currently the Minister of Audit and Supervisory
Committee of Guangdong Yudean Group Co., Ltd. He served as Director of the General Manager's Office of
Guangdong Electric Power 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 Board of Directors of Guangdong Yudean Group Co., Deputy Minister of Legal Affairs, Deputy
Minister of Capital Operations and Legal Affairs.
Ms.Zhao Li, born in October 1972. China University of Finance Bachelor of Economics, Master of Business
Administration, Jinan University. senior accountant. He is currently Vice Minister of Finance of Guangdong
Yudean Group Co., Ltd. Former Guangdong Yudean Asset Management Co., Ltd. Ministry of Finance production
infrastructure division manager, Guangdong Yudean Group Co., Ltd. senior director of the Ministry of Finance,
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
production finance division manager.
Mr. Zhu Weiping, born in May 1957. Doctor of Economics, Jinan University. He is currently a vice president of
the China Industrial Economics Society, executive vice president of the Guangdong Economic Association,
Zhujiang Industrial and Guangsheng Youse Independent Director, Independent Supervisor of Guangdong Electric
Power Development Co., Ltd..
Mr. Jiang Jin Suo, born in March 1968. Doctor of Management, Jinan University. Professor, Certified Public
Accountant. 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 Electric
Power Development Co., Ltd.
Mr. Lin Weifeng, born in February 1968. Bachelor of Management, Jiangxi University of Science and
Technology. auditor. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, Shajiao
A power plant finance minister. Former Shajiao power plant audit director, Shajiao A power plant deputy chief
economist.
Mr. Li Qing, born in May 1977. Bachelor of Economics, Shanghai University of Finance and Economics. senior
accountant. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, director of the
audit room. Former Yunfu Power Plant Finance Department Accounting, Guangdong Yuelong Power Co., Ltd.
Finance Minister Assistant.
Mr. Yang Xuanxing, born in November 1965. Bachelor of Management, Zhongshan University, Master of
Business Administration, Macau University of Science and Technology. Senior Auditor. He is currently the
deputy general manager of Guangdong Electric Power Development Co., Ltd. He was appointed Deputy Director
of Audit Office of Guangdong Electric Power Industry Bureau, Director of Audit and Supervision Department of
Guangdong Yudean Asset Management Co., Ltd., Deputy Secretary of Discipline Inspection Commission of
Guangdong Yudean Group Co., Ltd., Finance Minister and Deputy Chief Accountant.
Ms. Li Xiaoqing, born in September 1971. Chongqing University Bachelor of Engineering, Master of Engineering.
Senior economist. He is currently the deputy general manager and chief financial officer of Guangdong Electric
Power Development Co., Ltd. He was the head of the general manager of Guangdong Electric Power
Development Co., Ltd., secretary of the board of directors and manager of the board affairs department.
Ms. Liu Hui was born in October 1965. Bachelor of Engineering, Jiangxi South Metallurgical School. Senior
engineer. He is currently the deputy general manager of Guangdong Electric Power Development Co., Ltd.
Former Guangdong Thermal Power Engineering Corporation Deputy Chief Economist, Minister of Budget,
Guangdong Electric Power Development Co., Ltd. project management manager.
Mr. Liu Wei, born in April 1979. Bachelor of Economics, Zhongnan University of Finance and Economics.
Economist. He is currently the Secretary of the Board of Directors of Guangdong Electric Power Development
Co., Ltd. and Manager of Board Affairs Department.
Office taking in shareholder companies
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
√Applicable □Not applicable
Does he /she
Names of the receive
Titles engaged in the Sharing date of Expiry date of
persons in Names of the shareholders remuneration or
shareholders office term office term
office allowance from the
shareholder
Director, General Manager
Guangdong Yudean Group September
Huang Zhenhai and Vice Secretary of Party Yes
Co., Ltd. 18,2015
committee,
Director, Vice Secretary of
Party committee,
Guangdong Yudean Group February
Li Yanxu secretary of Committee f Yes
Co., Ltd. 9,2007
or Disciplinary inspection
Director, Deputy Genearl
Guangdong Yudean Group
Hong Rongkun Manager , member of the August 4,2003 Yes
Co., Ltd.
party committee
Director, Deputy Genearl
Guangdong Yudean Group January
Gao Shiqiang Manager , member of the Yes
Co., Ltd. 18,2006
party committee
Chief economic engineer,
Guangdong Yudean Group February
Kong Huitian member of the party Yes
Co., Ltd. 26,2009
committee
Director, Deputy general
Guangdong Yudean Group November
Li Mingliang Manager, member of the Yes
Co., Ltd. 4,2011
party committee
Guangdong Yudean Group
Xu Ping Deputy general Manager June 27,2011 Yes
Co., Ltd.
Deputy general manager,
Guangdong Yudean Group December
Yang Xinli member of the party Yes
Co., Ltd. 30,2012
committee
Guangdong Yudean Group Member of the party January
Yao Jiheng No
Co., Ltd. committee 17,2011
Guangzhou Development Deputy GM and Board
Zhang Xueqiu May 8,2009 Yes
Group Co., Ltd. secretary
Guangdong Yudean Group Secretary of Audit Supervise
Zhang Dewei July 1,2012 Yes
Co., Ltd. Dept
Guangdong Yudean Group Vice Secretary of Finance November
Zhao Li Yes
Co., Ltd. Dept 1,2010
Offices taken in other organizations
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
□Applicable √Not applicable
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
Directors, supervisors and senior executives of the Company shall obtain labor remuneration and enjoy
corresponding employee benefits according to their position and the Company's wage system. Except such
remuneration and benefits, no other remuneration and fringe benefits shall be additionally provided；The
allowance for the independent directors and independent supervisors of the Company shall be paid according to
the standards approved by the shareholders' general meeting.
At the end of the report period, the directors, supervisors and senior executives received the actual remuneration b
efore tax was total RMB 5.1578 million .
Remueration to directors, supervisors and senior executives in the reporting period
Unit ：RMB’0000
Total Remuneration
remuneration actually receivect
Name Positions Sex Age Office status
received from the at the end of the
shareholder reporting period
Huang Zhenhai Board chairman Male 54 In Office 0 Yes
Li Yanxu Director Male 50 In office 0 Yes
Hong Rongkun Director \Male 59 In Office 0 Yes
Gao Shiqiang Director Male 59 In office 0 Yes
Kong Huitian Director Male 60 In Office 0 Yes
Li Mingliang Director Male 52 In Office 0 Yes
Xu Ping Director \Male 53 In office 0 Yes
Yang Xinli Director Male 54 In Office 0 Yes
Director General
Yao Jiheng Male 51 In Office 58.76 No
Manager
Hu Xiaolei Director Male 51 In office 75.81 No
Zhang Xueqiu Director Male 50 In Office 0 Yes
Independent
Liu Tao Male 45 In Office 6.93 No
director
Independent
Zhang Hua Male 51 In Office 8.54 No
director
Sha Qilin Independent Male 56 In office 9.07 No
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
director
Independent
Mao Fugen Male 53 In Office 6.39 No
director
Independent
Shen Hongtao Female 49 In Office 4.29 No
director
Independent
Wan Xi Male 46 In Office 4.82 No
director
Chairman of the
Zhang Dewei Supervisory Male 55 In office 0 Yes
Committee
Zhao Li Supervisor Female 44 In Office 0 Yes
Independent
Zhu Weiping Male 59 In Office 4.29 No
Supervisor
Independent
Jiang Jinshuo Male 48 In Office 5.36 No
Supervisor
Employee
Lin Weifeng Male 48 In office 34.09 No
supervisor
Employee
Li Qing Male 39 In Office 35.31 No
supervisor
Deputy General
Yang Xuanxing Male 51 In Office 73.96 No
Manager
Deputy GM,
Li Xiaoqing Female 45 In office 70.32 No
Finance manager
Liu Hui Deputy GM Female 51 In Office 70.9 No
Liu Wei Board secretary Male 37 In Office 40.58 No
Original Board
Li Zhuoxian Male 53 Retired 0 Yes
chairman
Zhong Weimin Original director Male 60 Retired 0 Yes
Original
Ding Yougang Independent Male 47 Retired 3.18 No
director
Original
Lu Jun Independent Male 54 Retired 3.18 No
director
Total -- -- -- -- 515.78 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
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） 1,273
Number of in-service staff of the main subsidiaries（person） 5,335
Total number of the in-service staff（person） 6,608
Total number of staff receiving remuneration in the current
6,605
period（person）
The number of the parent company and the main subsidiary’s
3,192
retired staffs who need to bear the cost（person）
Professional
Classified according by Professions Number of persons（person）
Production 3,969
Sales
Technical 1,582
Financial
Administrative
Total 6,608
Education
Classified according by education background Number of persons（person）
Doctor
Master
Universities 2,608
Colleges 1,857
Technical secondary school
High school and Below 1,439
Total 6,608
2. Remuneration policies
The company’s staff received the salaries and enjoyed the benefits according to the relevant provisions stipulated
in the company’s Salary Management Approach. The salary of the company’s staff (Except the management staff
who categorized in the annual salary system) basically constituted by the basic salary, post salary, performance
salary, allowance, overtime wages and special bounties and so on.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
3.Training plan
The company formulated the Temporary Provisions for the Management of Staff Education and Training. The
staff training was adhered to the principle of learning integrated with application, learning by the needs and
stressing of practical effect, focused on the main contents of the post and the practical operation skills. The
training contents included the new staff orientation training, post training, continuing education, overseas training
and other trainings.
4. Outsourcing situation
□ Applicable √ Not applicable
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
IX. Administrative structure
I.Basic state of corporate governance
The company is strictly in accordance with “Company Law”, “Securities Law”, “Governance Standards of Listed
Company”, “Listing Rules of Stocks” and other laws and regulations requirements, constantly perfects the
corporate governance structure, standardizes corporate operations and further enhances the level of corporate
governance. The company has established the corporate “Articles of Association”, the rules of procedure of three
meetings’ operation, the working rules of the board of directors special committee, the working rules of the
general manager of company and working conditions and internal control system which basically covers all
aspects of the operation management like financial management, investment management, information disclosure,
associated trade, external guarantees and fund-raising. These systems are implemented better. During the
reporting period, the company has amended part of the clauses in “Inside Information Management System” based
on 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 the
relevant provisions of CSRC,
□ Yes √ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The 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 complete business
and operations management ability. 1. Separation of operation: the Company is principally engaged in the
electricity generation and sales to Guangdong Electric Power Holding Co.(“GPHC”) directly. The Company has
subcontracted the subsidiary of Yudean, the holding company, to purchase the fuels, which is solely for the
purpose of better utilization of large-scale purchase and cost control. 2. Separation of human resource: the General
Manager and all his subordinates, Secretary to the Board of Directors, Financial Manager are paid by the
Company and take no position in the holding company. 3. Separation of assets: the Company has independent
production system, supporting system and other facilities. The Company owns its intangible assets such as
intellectual property rights, trademarks and non-patent technology; 4. Separation of organization: the Company
has established integrated operating institution of its own.5.. Financial independence: the Company has an
independent financial department and has established independent accounting system and financial management
system. It opened independent bank accounts for its own operation.
III. Competition situations of the industry
√Applicable □ Not Applicable
Name of Property
the of the
Proble
Controlli Controlli Time Schedule of Works and
m Problems and Causes Countermeasures
ng ng Follow-up Program
Types
Sharehol Sharehol
ders ders
Guangdong Yudean In order to thoroughly eliminate To achieve the above commitments,
Guangdo Group is the strongest horizontal competitions between the specific plan of Guangdong Yudean
Horizo ng power generation Guangdong Yudean Group and others Group to avoid and resolve
ntal Yudean Local company of largest companies, the Guangdong Yudean intro-industry competition is as
compe Group SASAC scale in Guangdong Group has issued \"commitment letter\" follows: (1) the previous restructuring
titions Co., Province. It was about horizontal competitions on mentioned in \"proposal about
Ltd. founded by the November 3, 2011. And they associated business plan and major
Guangdong Yudean Standardized the commitments about assets restructuring for the company to
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Group as a division of avoiding and resolving intro-industry issue shares to buy assets \", which is
the company, when the competitions in accordance with adopted by Guangdong Electric Power
electricity system regulatory requirements on June 5, Development Fourth Extraordinary
reform \"separation of 2014 .Concrete contents are as General Assembly , has been
power plants from follows: 1, Guangdong Electric completed for one year, and related
network\" was initially Power Development is the only listed works about asset injection will be
carried out by platform of integrated domestic finished as well. This work was
Guangdong provincial generation assets. 2, Apart from launched in May 2013, and there is
government nationwide. generation assets of Guangdong currently an inventory of related assets
Guangdong Electric Electric Power Development, the about its existence defects and a
Power Development, as Guangdong Yudean Group will access research solutions to this disorders on
the only listed company problems in remaining generation the way. (2) Remaining generation
of Guangdong Power assets in terms of imperfect assets of GuangdongYudean Group,
Group, is engaged in approval process, earnings, which have a good profitability and
the electricity business. cooperation agreement and land are up to the listing requirements, will
Parts of its remaining utilization, and will inject the be injected into Guangdong Electric
generation assets of reformed assets that are up to the Power Development within the last
Guangdong Power listing requirements by acquisitions five years after the restructuring,
Group are currently not and restructuring in the last five years achieving the holistic listing of
included into after the completion of the domestic high-class generation assets
Guangdong Electric reorganization 3, the Guangdong in the Guangdong Yudean Group. (3)
Power Development , as Yudean Group offers the first Within five years after the completion
most of the parts are refusal rights for Guangdong Electric of the reorganization, if there are still
still not up to the listing Power Development administration risk of closing down and unprompted
requirements and some in terms of domestic power project profitability of power generation
problems of them development and asset acquisition, enterprises under the control of the
cannot be resolved in and if Guangdong Electric Power Guangdong Yudean Group or failing
short term, thus Development give up the to eliminate the defect domestic power
incurring to some extent development or acquisition. generation enterprises, it is the
horizontal Industry Generation assets of Guangdong Guangdong Electric Power
competitions. Yudean Group, that are that are up to Development that will decide whether
the listing requirements will be the Guangdong Yudean Group can
injected in put into Guangdong hold such generation companies'
Electric Power Development after the equity.
completion of the acquisition in the
project.
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Sessions Type participation Meeting Date Disclosure date Disclosure index
ratio
Name of
Announcement :Announcement of
Resolution of 2015 shareholders’
2015 Shareholders’ Annual General general meeting ，Announcement
6.36% May 20,2016 May 20,2016
general meeting Meeting No.:2016-23.
Published in China Securities Daily
, Securities Times and http//.www.
cninfo.com.cn.
Name of
Announcement :Announcement of
The first
Resolution of the first Provisional
provisional Provisional
shareholders’ general meeting in
shareholders’ shareholders’ 6.17% August 25,2016 August 26,2016
2016，Announcement No.:2016-41,
General meeting in General Meeting
Published in China Securities Daily
2016
, Securities Times and http//.www.
cninfo.com.cn
The second Provisional Name of
provisional shareholders’ 5.89% November 14,2016 November 15,2016 Announcement :Announcement of
shareholders’ General Meeting Resolution of the second
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
General meeting in Provisional shareholders’ general
2016 meeting in 2016，Announcement
No.:2016-49,
Published in China Securities Daily
, Securities Times and http//.www.
cninfo.com.cn
Name of
Announcement :Announcement of
The Third
Resolution of the third Provisional
provisional Provisional
shareholders’ general meeting in
shareholders’ shareholders’ 5.59% December 30,2016 December 31,2016
2016，Announcement No.:2016-52,
General meeting in General Meeting
Published in China Securities Daily
2016
, 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 to board meetings and shareholders’ general meeting
The attending of independent directors
Number of Failure to
Number of
Board meetings Number of personally attend
Independent Number of spot meetings Number of
necessary to be attendances by board meetings
Directors attendances attended by absence
attended in the representative successively
Communication
reporting period twice (Yes/No)
Liu Tao 11 4 6 1 0 No
Zhang Hua 11 5 6 0 0 No
Sha Qilin 11 5 6 0 0 No
Mao Fugen 11 2 6 3 0 Yes
Shen Hongtao 8 4 4 0 0 No
Wang Xi 8 3 4 1 0 No
Number of general meetings attended
by independent directors as non-voting
delegates
Notes to failure to personally attend Board Meetings Successively Twice
During the reporting period, due to other things, the independent director Mao Fugen failed to personally attend
the twelfth meeting of the eighth session board of directors, the thirteenth meeting of the eighth session board of
directors and the fourteenth meeting of the eighth session board of directors (Among them, the twelfth meeting of
the eighth session board of directors and the thirteenth meeting of the eighth session board of directors all were
held on August 25, 2016), but he entrusted the independent director Shen Hongtao to attend all the afore-said
meetings and exercise the right to vote. Before the afore-said board meetings, the independent director Mao Fugen
carefully reviewed the conference documents and performed duties independently and impartially. According to
the letter of authorization issued by him, there were no objections to all the topics of the meetings.
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.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
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.
In the report period, the independent directors of the Company earnestly performed the requirement assigned, The
independent directors of the Company earnestly performed the requirement assigned by laws and regulations and
Articles of Association of the Company, cared for the Company's production and business and financial perform
ance and corporate governance structure , expressed independent opinions on the Company's operation and decis
ion making and all related transactions, According to the regulation, conducting verification & giving independe
nt opinion on important issues such as company’s internal control, external guarantee performance, connected tra
nsaction and appointing or dismissing of executives, company’s management level had been improved
and definitely ensure the lawful rights and interests of most shareholders.
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
The board of directors of the company comprises committee of strategy, audit, budget, nomination and
remuneration and appraisal. Each professional committee has established their corresponding working rules and
put forward related professional opinions and suggestions according to their respective duties to the company
operating development, which promoted the standardized operation of the company. In 2015, the duty fulfillment
conditions of each special committee of the company's board of directors are as follows:
1.According to the relevant provisions of the China securities regulatory commission and Shenzhen stock
exchange as well as the working discipline of annual report of the board of directors audit committee. On April 7,
2016, the Audit Committee of the eighth session board of directors held the sixth meeting, in which the company’s
2015 annual financial report and The Company's Internal Control Evaluation Report etc were deliberated, thus
formed review opinions; On August 16, 2016, the Audit Committee of the eighth session board of directors held
the seventh meeting, in which the 2016 semi annual financial report and the matters such as the engaging of
accounting firm were deliberated, thus formed review opinions; on December 30, 2016, the Audit Committee of
the eighth session board of directors held the eighth meeting, in which the Proposal about the 2016 Financial
Statements Work Plan was deliberated, and the communications with PwC in connection to the 2016 annual audit
plan and the preliminary examination were carried out.
2.The remuneration and appraisal committee of the board of directors audited the remuneration condition of the
directors, supervisors and senior managers disclosed in this report. The committee regarded that the payment
standard and the determination of the total amount of annual payment conformed to their position and the
company's payment management regulations; the payment conditions of the directors, supervisors and senior
managers disclosed in Annual report is real.
3. The budget committee of the Eight board held its 1st meeting on April 1, 2016 , reviewed and adopted the
“Proposal on Illustration of Budget Implementation in 2015 and Budget Preparation in 2016”.
4. On November 23, 2016, the Strategy Committee of the board held the first meeting of Strategy Committee of the
eighth session board of directors, in which the Proposal about the Company’s \"13th Five-Year\" Development
Planning Report was examined and approved.
5.On November 23, 2016, the nomination committee of the board held the first meeting of the nomination
committee of the eighth session board of directors, in which the qualifications for the director candidates were
carefully deliberated.5
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting period
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
VIII. Assessment and incentive Mechanism for Senior executives
Performance evaluation and incentive system will be employed by senior managers on the basis of enterprise
salary 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 on
April 26,2017
internal control
Disclosure index of appraisal report on Juchao Website:（http://www.cninfo.com.cn）, Selfevaluation report of internal control
internal control in 2016
Proportion of total unit assets covered by
appraisal in the total assets of the
96.49%
consolidated financial statements of the
company
Proportion of total unit incomes covered
by appraisal in the total business incomes
97.67%
of the consolidated financial statements of
the company
Standards of Defects Evaluation
Category Financial Report Non-financial Report
Qualitative criteria of evaluation towards inner control deficiency of financial Qualitative criteria of evaluation
report made by company are as follows: Ⅰ, the inner control of financial towards inner control deficiency of
report should be considered as “significant deficiency” if the following non-financial report made by
circumstances (including but not limited to) occurred: ① the ineffective company are as follows: ①
environmental control; ② irregularities appearing between company directors, significant deficiency means one or
supervisors and senior executives; ③ serious mistakes in the financial more combinations of control
statements of the current period found by external audit but not the inner deficiency which may result in
control in the process of operating; ④ ineffective supervision of inner control seriously deviating from control
from directorate and inner audit institution. Ⅱ, the inner control of financial goals. ② serious deficiency means
Qualitative
report should be considered as “serious deficiency” if the following one or more combinations of control
criteria
circumstances occurred: ① accounting policy chosen and applied is not based deficiency whose severity and
on the GAAP; ② anti-irregularity procedure and control measures are not financial result are less than those of
significant deficiency with
established; ③ very few relative control measures are established or
possibility of deviating company
implemented in terms of the accounting treatment related to unconventional or
from its control goals. ③ common
special transaction; ④ one or more deficiencies exist in the control process of
deficiency means other control
final financial report and the authenticity, accuracy and integrity of
deficiencies apart from significant
establishment can not be assured reasonably. Ⅲ common deficiency means,
and serious deficiencies.
apart from the above “significant deficiency” and “serious deficiency”, other
deficiencies exist in the inner control process.
A 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
①the significant deficiency means
statement, which is measured by operating receipt. The amount of
that the direct property loss is
misstatement in financial report resulted from the control deficiency or its
between 50 million yuan .(2) the
combination is less than 0.5 percent of the operating receipt, which could be
Quantitative significant deficiency means hat the
considered as the common deficiency. That would be considered as serious
direct property loss is between 30
criteria deficiency if the amount of misstatement in financial report resulted from the
million yuan (including 30 million
control deficiency or its combination is more than 0.5 percent but less than 1
yuan) ; the serious deficiency means
percent of the operating receipt. And that would be regarded as significant
that the direct property loss is
deficiency if that is more than 1 percent of the operating receipt. ② inner between 30 million.
control deficiency may lead to loss related to assets management, which is
measured by total assets. The amount of misstatement in financial report
Guangdong Electric Power Development Co., Ltd. 2016 Annual 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 significant deficiency if that is more than 1 percent of the total
assets.
Number of
major defects
in financial
reporting（a）
Number of
major defects
in non
financial
reporting (a)
Number of
important
defects in
financial
reporting（a）
Number of
important
defects in non
financial
reporting（a）
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. maintained efficient internal control of financial reports in all
significant aspects according to “ Basic Standards of Corporate Internal Control” and relevant regulations on December 31, 2016.
Disclosure date of audit report
Disclosure
of internal control (full-text)
Index of audit report of
April 26,2017
internal control (full-text)
Internal audit report’s opinion Juchao Website: （http://www.cninfo.com.cn）;2016 Audit report of internal control
Type of audit report on internal
Unqualified auditor’s report
control
Whether there is significant
No
defectin non-financial report
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 of
Directors
√Yes □No
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
X. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due butnot folly cashed on the approval date of annual report
Yes
1.Basic information of corporate bonds
Bond
Bond short Interest
Bond name Bond code Issue day Due day balance Servicing way
name rate
‘0000
Using simple interest rate on a
yearly basis, regardless of
2012 Corporate bonds of
compound interest. Due
12 Yudean March March
Guangdong Electric Power 112162.SZ 120,000 4.95% payments once a year, maturing
Bond 18,2013 17,2020
debt at a time. In the final phase,
Development Co., Ltd..
interest is paid together with the
principal redemption.
Corporate bonds listed or trading
Shenzhen Stock Exchange
places
During the reporting period, interest The company paid the bond interests of the current year on March 18, 2015 to all the bond
payment situation of the company holders who were registered in China Securities Depository and Clearing Co., Ltd. Shenzhen
bonds branch as of the afternoon of March 17, 2015 when the Shenzhen Stock Exchange closed.
If the corporate bonds attached to
special clauses to the issuer or the
The duration of the bonds is 7 years, with redemption option, option of raising coupon rate by
investors such as option clause and
the issuer and the puttable right for the investors at the end of the fifth year. During the
exchangeable clause, please specify
reporting period, the relevant clauses have not met the conditions for implementation.
the implementation status of the
corresponding clauses. (When
applicable)
2. Bond trustee and the credit rating agency information
Bond trustee：
22/F, CITIC Securities
CITIC Building , No.48.
Song Yilan ,Kou
Name Securities Office Liangmaqiao Road, Contact Tel 010-60838888
Zhibo
Co., Ltd. Chaoyang District ,
Beijing
The credit rating agencies which follow and rate the corporate bond during the reporting period
8/F, Anji Building, No.760, Tibet South Road,
Name CCXR Office address
Huangpu District, Shanghai.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
During the report period, the bond trustee,
credit rating agency employed by the
company that have changed, reasons for
Not applicable
the change, performing procedures,
relevant influence on investors,etc(If
applicable).
3. The usage of corporate bonds to raise money
According to the relevant contents in the Prospectus of the Issuance of Bonds
announced on March 14, 2013, the company planned to use RMB 820 million of the
raised funds to repay the loans, thus to adjust the debt structure; the remaining RMB
380 million of the raised funds planned for supplementing the company’s liquidity, so
The usage and performance of raised funds as to improve the company’s funds status. The net amount of the funds raised by the
from Corporate bonds bonds had been remitted to the company’s designated bank account on March 20,
2013, of which the amount of RMB 820 million of the raised funds had been used for
repaying the loans, so as to adjust the debt structure; the remaining RMB 380 million
of the raised funds used for supplementing the company’s liquidity, so as to improve
the company’s funds status.
At the end of balance (RMB’0000)
Whether the usage of the raised money
corresponding to the purposes of promise, Yes
use plans, and other agreement
4.Corporate bond rating information
On June 20, 2016, CCXR traced and analyzed the credit status of the company and the company’s bonds of
“12-Yuedian Bonds”, maintained the credit rating of AAA for the main body of the company, with a stable
outlook; maintained the credit rating of AAA for the corporate bonds.(The rating results were disclosed on the
website: http://www.ccxr.com.cn/, with the title of Tracking and Rating Report for the 2012-Corpoprate Bonds of
Guangdong Electric Power Development Co., Ltd(2016).
5.Corporate bond credit mechanism, the debt repayment plans and other security measures
(1)The credit-raising mechanism: No guarantee of the company’s bonds. After the comprehensive assessment by
CCXR, the credit rating of the main body of the company is AAA with a stable outlook, and the credit rating of
the corporate bonds is AAA.
(2)The repayment plan: The interest of the bonds commenced from the date of March 18, 2013, and the interest of
the bonds shall be paid once each year within the duration of the bonds after the commencement date of the
interest. The date of March 18 of each year in the period from 2014 to 2020 shall be the interest paying day for
paying the recent full year’s bond interests (If it is not a working day, the payment day will be postponed to the
first working day after the day). If the issuer performs the redemption option or the investors perform the puttable
right, then the date of March 18 of each year in the period from 2014 to 2018 is the interest paying day for paying
the recent full year’s interests of the bonds being redeemed or the bonds being sold back. The maturity date of the
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
bonds is March 18, 2020, and the company will repay the principal and pay the last full year’s interest when the
bond is due. If the issuer performs the redemption option or the investors perform the puttable right, the maturity
date of the bonds being redeemed or the bonds being sold back is March 18, 2018, and the corresponding
principal and the last full year’s interest will be repaid.
(3) Safeguard measures for the repayment: in order to fully and effectively safeguard the interests of the
bondholders, the company had made a series of work plans for the full repayment of the bonds that can be
implemented on time, including the designated department and personnel, arrangement of repaying the bonds,
establishment of the management measures, doing good organization and coordination, strengthening the
information disclosure and so on, strived to form a set of safeguard measures for ensuing the repayment of the
bonds.
6.During the reporting period the bondholder meeting
During the reporting period, the company did not hold bondholders meeting.
7.During the reporting period the bond trustee perform his duties
The company’s bond trustee- CITIC Securities Co., Ltd safeguarded the legal rights of the bond holders with in
accordance with the law and performed the obligations stipulated in the Prospectus of the Issuance of Bonds and
other publicly disclosed documents, hence continuously followed up and acquainted the relevant information of
the company during the entrusting period, issued and provided the regular report of the bond trustee, with in
accordance with the company’s information being followed up and acquainted.
During the reporting period, CITIC Securities Co., Ltd issued the Report of the 2012 Corporate Bonds Trustee for
Guangdong Electric Power Development Co., Ltd(year of 2015) on May 27, 2016, and the report was disclosed on
the cninf website on May 30, 2016 by the company.
8.During the reporting period, the company's major accounting data and financial indicators for last 2
years
In RMB’0000
Items 2016 2015 At the same time rate of change
Earnings before interest, tax,
342,800.75 1,115,030.95 -69.26%
depreciation and amortization
Current ratio 66.95% 66.99% -0.04%
Debt ratio 58.49% 57.98% 0.51%
Quick ratio 46.93% 54.93% -8.00%
EBITDA/Total debts 8.46% 31.51% -23.05%
Interest coverage ratio 2.08 3.87 -46.25%
Cash interest coverage ratio 7.03 7.15 -1.68%
EBITDA interest coverage ratio 2.14 5.8 -63.10%
Loans repayment rate 100% 100% 0%
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
Interest payment rate 100% 100% 0%
The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the last
year
√ Applicable □Not applicable
1. Due to the sluggish demand of electricity and the increasing competition in 2016, the company’s on-grid
electricity amount clearly declined, meanwhile the national grid-purchase price was again decreased since January
1 and the coal price rose in the second half of the year, resulted in that the company’s power business recorded a
big decline in profits as well as the associated company recorded a big decline in investment income.
2. The non-operating matters such as the implementation of environmental-protection and energy saving
reconstruction on the coal-fired power generation units of subordinate power plant leading to a provision for part
of dismantled or estimated scrapped equipment parts, the out-of-scope sea reclamation by Ping Hai Power Plant
leading to administrative penalty and the payment of fines and late fees in tax inspection have an impact on the
company’s profitability. In addition, the same period of last year confirmed the gains from the disposal of the oil
shale company's equity, while the current period has no such gains.
The above factors led to that the indicators such as profit before interest, tax, depreciation and amortization,
interest coverage ratio and interest coverage ratio of EBITDA fell sharply compared to the same period of last
year.
9. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of
the bonds during the reporting period
On October 20, 2015, the company issued 1,500,000,000 yuan of ultra short-term financing bonds, with a term of
270 days. During the reporting period, the payment of the principal and interest was RMB 1,536,405,737.
10..During the reporting period the situation of performing the related agreement or commitment in the
corporate bond prospectus
In ther report period, the company signed an unconditional available bank amount limit of about RMB 47.817
billion, of which the used amount limit was RMB 28.626 billion, thus the remaining available bank amount limit
was about RMB 19.191 billion. In this year, the company repaid bank loans of about RMB 12.379 billion, and the
balance of bank loans was RMB 26.638 billion.
11.During the reporting period the situation of performing the related agreement or commitment in the
corporate bond prospectus
The company had committed to pay the principal and interests to the bondholders according to the stipulations of
the prospectus of “Yuedian Bonds” issuance. In the reporting period, the company strictly performed the
commitment, and on March 18, 2016, the company paid the bond interests to all the bondholders registered by
China Securities Depository and Clearing Co., Ltd. Shenzhen Branch as of the afternoon time of March 17, 2016
when the trading in Shenzhen Stock Exchange was closed.
12.Major events occurring in the period of report
No
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
13.Whether there is a guarantor corporate bonds
□ Yes √No
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
XI. Financial Report
I. Audit report
Type of audit opinion Unqualified audit opinion
Date for signing the auditor’s report April 24,2017
Name of audit firm PWC Certified Public Accountants (special general partnership)
Auditors Report NO. 普华永道中天审字(2017)第 10110 号
Certified public accountant's name Wang Bin, Chen Junjun
Auditors Report
To all shareholders of Shareholders of Guangdong Electric Power Development Co., Ltd.
We audited accompanying financial statements of Guangdong Electric Power Development Co., Ltd.. (hereinafter
referred to as \"the Company\"), including Consolidation and parent Company balance sheet on December 31, 2016,
Consolidation and parent Company profit statement, Consolidation and parent Company cash flow statement for
the year 2016 and Consolidation and parent Company statement of change in shareholders' equity and the notes to
financial statements..
I. Management’s responsibility for the financial statements
Preparation of financial statements in accordance with the Accounting Standards for Business Enterprises is
the responsibility of the management of the Company. Such responsibility includes: (1) Prepare the financial
statements according to business enterprises regulation, so that making reasonable accounting estimate. (2) design,
implementation and maintenance of internal control related to the preparation of financial statements so that
financial statements are free from material misstatement caused by fraudulent practices or errors;
II. Responsibility of certified public accountants
We are responsible for expressing opinions on financial statements based on our audit. We conducted audit
in accordance with the audit criteria for Chinese certified public accountants. The audit criteria for Chinese
certified public accountants require us to abide by professional ethics, plan and conduct audit to obtain reasonable
assurance as to whether financial statements are free from material misstatement. Audit involves carrying out
audit procedure to obtain the audit evidences about the amounts and disclosure of financial statements. The
selected audit procedure relies on the judgment of certified public accountants, including the appraisal of risk of
material misstatement of financial statements caused by fraudulent practices or errors. While appraising risks, we
considered the internal control related to the preparation of financial statements to design proper audit procedure
but the purpose is not to express an opinion on the effectiveness of internal control. The audit also includes the
appraisal of suitability of accounting policies selected by the management, the reasonableness of accounting
estimate and the overall presentation of financial statements.
We believe that the audit evidences obtained by us are full and appropriate and provide a basis for expressing
audit opinion.
Guangdong Electric Power Development Co., Ltd. 2016 Annual Report
III. Audit opinion
In our opinion, the financial statements of Dongxu Optoelectronic Technology Co., Ltd. Wharf present fairly, in
all material respects, the company‘s and consolidated financial position as of 31 December 2016, and the
Company‘s and consolidated results of operations and cash flows for the year then ended in accordance with
Accounting Standards for Business Enterprises.
PWC Certified Public Accountants (special general partnership)
Shanghai, China
April 24 ,2017
CPA CPA
———————— ————————
Wang Bin Chen Junjun
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
31 December 2016 31 December 2015
ASSETS Note Consolidated Consolidated
Current assets
Cash at bank and on hand IV(1) 5,184,873,650 5,237,406,725
Accounts receivable IV(2) 2,776,061,909 2,484,683,890
Advances to suppliers IV(3) 1,064,822,122 1,063,701,630
Interests receivable IV(4) 16,681,118 10,232,658
Dividends receivable - 4,000,000
Other receivables IV(5) 133,499,956 188,899,280
Inventories IV(6) 1,513,153,241 1,333,654,623
Other current assets IV(7) 882,055,591 638,461,972
Total aurrent assets 11,571,147,587 10,961,040,778
Non-current assets
Available-for-sale financial assets IV(8) 1,279,387,994 1,094,350,488
Long-term receivables IV(9) 136,075,412 128,640,631
Long-term equity investments IV(10) 5,432,637,750 5,924,410,159
Investment properties IV(11) 8,932,237 9,567,835
Fixed assets IV(12) 41,814,685,521 44,330,167,621
Construction in progress IV(13) 6,343,293,763 5,613,398,840
Construction materials 1,496,854 1,673,547
Fixed assets pending for disposal 4,304,229 3,475,384
Intangible assets IV(14) 1,707,490,221 1,663,430,069
Goodwill IV(15) 27,486,780 27,486,780
Long-term prepaid expenses IV(16) 34,611,712 28,843,225
Deferred tax assets IV(17) 303,929,269 116,237,351
Other non-current assets IV(18) 2,011,524,431 2,017,211,435
Total non-current assets 59,105,856,173 60,958,893,365
TOTAL ASSETS 70,677,003,760 71,919,934,143
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED BALANCE SHEET(CONTINUED)
AS AT 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
LIABILITIES AND OWNERS’ Note 31 December 2016 31 December 2015
EQUITY
Current liabilities Consolidated Consolidated
Short-term borrowings IV(20) 5,758,860,000 6,288,060,000
Notes payable IV(21) 1,330,480,837 593,971,146
Accounts payable IV(22) 3,167,250,446 1,739,227,291
Advances from customers IV(23) 12,456,360 244,798
Employee benefits payable IV(24) 144,122,128 123,477,922
Taxes payable IV(25) 326,919,844 404,729,354
Interests payable IV(26) 83,648,793 105,492,698
Dividends payable IV(27) 9,703,930 8,640,994
Other payables IV(28) 3,292,556,995 3,536,133,625
Current portion of non-current liabilities IV(29) 1,433,644,523 1,850,970,652
Provisions - 700,000
Other current liabilities IV(30) 1,723,070,000 1,711,348,630
Total current liabilities 17,282,713,856 16,362,997,110
Non-current liabilities
Long-term borrowings IV(31) 19,888,172,037 21,303,229,910
Debentures payable IV(32) 1,900,124,468 1,196,029,762
Long-term payables IV(33) 1,917,552,654 2,495,443,111
Payables for specific projects IV(34) 26,675,385 24,711,974
Deferred income IV(35) 125,650,072 103,256,725
Long-term employee benefits payable IV(36) 122,832,249 85,827,126
Deferred tax liabilities IV(17) 37,718,277 87,243,028
Other non-current liabilities IV(37) 39,000,000 39,000,000
Total non-current liabilities 24,057,725,142 25,334,741,636
Total liabilities 41,340,438,998 41,697,738,746
Owners’ equity
Paid-in capital IV(38) 5,250,283,986 5,250,283,986
Capital surplus IV(39) 5,003,007,478 5,007,077,158
Other comprehensive income IV(40) 145,059,015 245,708,715
Surplus reserves IV(41) 6,845,001,818 5,812,191,775
Undistributed profits IV(42) 6,135,494,928 7,439,335,347
Total equity attributable to equity 23,378,847,225 23,754,596,981
owners of the
Minority interestscompany 5,957,717,537 6,467,598,416
Total owners’ equity 29,336,564,762 30,222,195,397
TOTAL LIABILTIES AND 70,677,003,760 71,919,934,143
OWNERS’EQUITY
The accompanying notes form an integral part of these financial statements.
Zhenhai Huang Xiaoqing Li Fei Meng
Legal representative Person in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
ASSETS Note 31 December 2016 Company 31 December 2015 Company
Current assets
Cash at bank and on hand 326,073,538 682,950,639
Accounts receivable XV(1) 212,343,198 134,539,664
Advances to suppliers 79,990,745 115,303,150
Interests receivable 723,819 1,818,442
Dividends receivable - 21,512,934
Other receivables XV(2) 122,933,749 318,483,048
Inventories 149,462,926 141,559,999
Other current assets 25,650,427 10,508,362
Total current assets 917,178,402 1,426,676,238
Non-current assets
Available-for-sale financial assets 1,279,387,994 1,094,350,488
Long-term receivables 335,000,000 100,000,000
Long-term equity investments XV(3) 22,896,735,913 22,588,550,554
Investment properties 8,932,237 9,567,835
Fixed assets 1,049,906,014 1,217,618,892
Construction in progress 43,039,781 26,156,889
Intangible assets7 92,152,556 95,876,179
Other non-current assets 672,504,000 653,004,000
Total non-current assets 26,377,658,495 25,785,124,837
TOTAL ASSETS 27,294,836,897 27,211,801,075
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
LIABILITIES AND OWNERS’
EQUITY 31 December 2016 Company 31 December 2015 Company
Current liabilities
Short-term borrowings 300,000,000 900,000,000
Accounts payable 517,973,144 292,714,747
Employee benefits payable 31,813,417 30,063,156
Taxes payable 9,688,606 21,266,249
Interests payable 48,091,022 52,100,633
Dividends payable 9,703,930 8,640,994
Other payables 93,522,121 112,031,125
Other current liabilities 1,216,583,014 1,509,599,589
Total current liabilities 2,227,375,254 2,926,416,493
Non-current liabilities
Long-term borrowings 1,500,000,000 1,500,000,000
Debentures payable 1,196,982,619 1,196,029,762
Deferred income 59,533,388 52,918,949
Long-term employee benefits payable 23,445,887 24,192,962
Deferred tax liabilities 12,508,093 54,572,001
Total non-current liabilities 2,792,469,987 2,827,713,674
Total liabilities 5,019,845,241 5,754,130,167
Owners’ equity
Paid-in capital 5,250,283,986 5,250,283,986
Capital surplus 5,605,752,163 5,609,821,843
Other comprehensive income 145,059,015 245,708,715
Surplus reserves 6,845,001,818 5,812,191,775
Undistributed profits 4,428,894,674 4,539,664,589
Total Owners’ equity 22,274,991,656 21,457,670,908
TOTAL LIABILITIES AND OWNERS’
EQUITY 27,294,836,897 27,211,801,075
The accompanying notes form an integral part of these financial statements.
Zhenhai Huang Xiaoqing Li Fei Meng
Legal representative Person in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
Item Note 2016
Revenue IV(43) 22,681,120,022 25,723,810,816
Less: Cost of sales IV(43) (17,793,626,382) (18,053,754,759)
Taxes and surcharges IV(44) (299,690,966) (230,127,055)
Selling and distribution expenses (2,807,165) (1,839,453)
General and administrative expenses IV(45) (775,880,023) (921,738,681)
Financial expenses – net IV(46) (1,369,698,178) (1,581,536,918)
Asset impairment losses IV(47) (758,270,129) (22,907,440)
Add: Investment income IV(48) 341,364,663 801,398,115
Including: Share of profit of associate and joint
venture 290,956,937 485,710,643
Operating profit 2,022,511,842 5,713,304,625
Add: Non-operating income IV(49) 99,260,092 98,430,653
Including: Gain on disposal of non-current
assets 17,252 2,053,224
Less: Non-operating expenses IV(50) (216,864,774) (18,607,598)
Including: Losses on disposal of non-current
assets (3,740,573) (10,075,720)
Total profit 1,904,907,160 5,793,127,680
Less: Income tax expenses IV(51) (618,844,889) (1,162,984,273)
Net profit 1,286,062,271 4,630,143,407
Attributable to equity owners of the Company 936,534,941 3,237,733,312
Minority interests 349,527,330 1,392,410,095
Other comprehensive income, net of tax
Attributable to equity owners of the Company (100,649,700) 73,212,312
Other comprehensive income that will be
subsequently reclassified to profit or loss
Shares of other comprehensive income of the
investee accounted for using equity method
that will be subsequently reclassified to
profit or loss (439,064) 261,197
Changes in fair value of available-for-sale
financial assets (100,210,636) 72,951,115
Total comprehensive income 1,185,412,571 4,703,355,719
Attributable to equity owners of the Company 835,885,241 3,310,945,624
Attributable to minority interests 349,527,330 1,392,410,095
Earnings per share
Basic earnings per share(RMB) IV(52) 0.18 0.62
Diluted earnings per share(RMB) IV(52) 0.18 0.62
The accompanying notes form an integral part of these financial statements.
Zhenhai Huang Xiaoqing Li Fei Meng
Legal representative Person in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
2016
Item Note Company Company
Revenue XV(4) 2,029,877,030 2,165,343,994
Less: Cost of sales XV(4) (1,648,261,528) (1,618,676,768)
Taxes and surcharges (21,983,992) (18,406,421)
Selling and distribution expenses (13,886) (39,868)
General and administrative expenses (133,031,153) (161,485,630)
Financial expenses-net (210,739,704) (286,215,799)
Asset impairment losses (85,722,207) -
Add: Investment income XV(5) 2,206,631,861 2,907,200,029
Including: Share of profit of associate and joint
venture 286,517,653 480,914,756
Operating profit 2,136,756,421 2,987,719,537
Add: Non-operating income 8,132,110 23,817,223
Including: Gains on disposal of non-current
assets - -
Less: Non-operating expenses (755,930) (8,385,896)
Including: Losses on disposal of non-current
assets (139,571) (7,426,110)
Total profit 2,144,132,601 3,003,150,864
Less: Income tax expenses (14,527,156) (52,265,028)
Net Profit 2,129,605,445 2,950,885,836
Other comprehensive income, net of tax (100,649,700) 73,212,312
Other comprehensive income that will be
subsequently reclassified to profit or loss
Shares of other comprehensive income of the
investee accounted for using equity method
that will be subsequently reclassified to profit
or loss (439,064) 261,197
Changes in fair value of available-for-sale
financial assets (100,210,636) 72,951,115
Total comprehensive income 2,028,955,745 3,024,098,148
The accompanying notes form an integral part of these financial statements.
Zhenhai Huang Xiaoqing Li Fei Meng
Legal representative Person in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPREHENSIVE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
2016
Item Note Consolidated Consolidated
1. Cash flows from operating activities
Cash received from sales of goods or
rendering of services 25,046,349,439 30,520,140,122
Refund of taxes and surcharges 5,548,556 14,443,818
Cash received relating to other operating
activities IV(54)(a) 175,522,880 137,082,635
Sub-total of cash inflows 25,227,420,875 30,671,666,575
Cash paid for goods and services (11,718,985,740) (14,057,756,199)
Cash paid to and on behalf of employees (1,784,621,548) (1,808,136,239)
Payments of taxes and surcharges (2,542,268,475) (3,896,301,670)
Cash paid relating to other operating
activities IV(54)(b) (476,769,294) (467,035,322)
Sub-total of cash outflows (16,522,645,057) (20,229,229,430)
Net cash flows from operating activities IV(55)(a) 8,704,775,818 10,442,437,145
2. Cash flows from investing activities
Cash received from disposal of investments - 448,768,620
Cash received from return on investments 513,955,425 612,292,965
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets 20,778,986 4,049,408
Net cash received from acquisition of
subsidiaries and other business units - 52,028,777
Sub-total of cash inflows 534,734,411 1,117,139,770
Cash paid to acquire fixed assets, intangible
assets and other long-term assets (3,315,903,498) (5,363,878,048)
Cash paid to acquire minority interests - (92,453,008)
Sub-total of cash outflows (3,315,903,498) (5,456,331,056)
Net cash flows used in investing activities (2,781,169,087) (4,339,191,286)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPREHENSIVE CASH FLOW STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
2016
Item Notes Consolidated Consolidated
3. Cash flows from financing activities
Cash received from capital contributions 74,802,100 39,000,000
Cash received from borrowings 9,944,710,691 21,628,567,512
Cash received from issuing debentures and
short-term financing notes 2,397,375,000 1,697,712,500
Cash received relating to other financing
activities IV(54)(c) 90,021,217 1,984
Sub-total of cash inflows 12,506,909,008 23,365,281,996
Cash repayments of borrowings (14,079,473,947) (24,313,422,024)
Cash payments for distribution of dividends,
profits or interest expenses (3,627,200,214) (4,028,946,933)
Cash paid for finance leases resulting from
sale and leaseback (766,374,653) (376,629,487)
Cash paid for minority interests for capital
reduction of subsidiaries - (50,400,000)
Sub-total of cash outflows (18,473,048,814) (28,769,398,444)
Net cash flows used in financing activities (5,966,139,806) (5,404,116,448)
4. Net (decrease)/increase in cash and cash
equivalents IV(55)(a) (42,533,075) 699,129,411
Add: Cash and cash equivalents at beginning
of year 5,227,406,725 4,528,277,314
5. Cash and cash equivalents at end of year IV(55)(b) 5,184,873,650 5,227,406,725
The accompanying notes form an integral part of these financial statements.
Zhenhai Huang Xiaoqing Li Fei Meng
Legal representative Person in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
2016
Item Company Company
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services 2,297,109,979 2,626,251,815
Cash received relating to other operating activities 24,560,463 28,738,089
Sub-total of cash inflows 2,321,670,442 2,654,989,904
Cash paid for goods and services (1,170,875,526) (1,153,128,204)
Cash paid to and on behalf of employees (350,301,726) (386,460,091)
Payments of taxes and surcharges (207,700,042) (283,379,618)
Cash paid relating to other operating activities (50,621,481) (64,921,710)
Sub-total of cash outflows (1,779,498,775) (1,887,889,623)
Net cash flows from operating activities 542,171,667 767,100,281
2. Cash flows from investing activities
Cash received from disposal of investments 300,000,000 1,368,368,620
Cash received from returns on investments 2,401,308,751 2,776,757,775
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets 54,914 180,482
Sub-total of cash inflows 2,701,363,665 4,145,306,877
Cash paid to acquire investments (1,192,880,000) (2,111,357,008)
Cash paid to acquire fixed assets, intangible assets and other
long-term assets (88,163,938) (124,175,374)
Sub-total of cash outflows (1,281,043,938) (2,235,532,382)
Net cash flows from investing activities 1,420,319,727 1,909,774,495
3. Cash flows from financing activities
Cash received from borrowings 1,000,000,000 2,550,000,000
Cash received from issuing debentures and short-term
financing notes 1,198,650,000 1,498,312,500
Cash received relating to other financing activities 21,217 1,984
Sub-total of cash inflows 2,198,671,217 4,048,314,484
Cash repayments of borrowings (3,100,000,000) (5,199,999,300)
Cash payments for distribution of dividends, profits or (1,418,039,712) (1,250,473,122)
interest expenses (4,518,039,712) (6,450,472,422)
Sub-total of cash outflows
Net cash flows used in financing activities (2,319,368,495) (2,402,157,938)
4. Net (decrease)/increase in cash and cash equivalents (356,877,101) 274,716,838
Add: Cash and cash equivalents at beginning of year 682,950,639 408,233,801
5. Cash and cash equivalents at end of year 326,073,538 682,950,639
The accompanying notes form an integral part of these financial statements.
Zhenhai Huang Xiaoqing Li Fei Meng
Legal representative Person in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
Attributable to the equity owners of the Company
Other
comprehensive Undistributed Total owners’
Paid-in capital Capital surplus income Surplus reserves profits Minority interests equity
Balance at 1 January 2016 5,250,283,986 5,007,077,158 245,708,715 5,812,191,775 7,439,335,347 6,467,598,416 30,222,195,397
Movements for the 2016
Total comprehensive income - - (100,649,700) - 936,534,941 349,527,330 1,185,412,571
Capital contribution and withdrawal by
owners - - - - - 74,802,100 74,802,100
Profit distribution
Appropriation to surplus reserves - - - 1,032,810,043 (1,032,810,043) - -
Distribution for owners - - - - (1,207,565,317) (934,210,309) (2,141,775,626)
Share of equity in associates based on
shareholding - (4,090,897) - - - - (4,090,897)
Others - 21,217 - - - - 21,217
Balance at 31 December 2016 5,250,283,986 5,003,007,478 145,059,015 6,845,001,818 6,135,494,928 5,957,717,537 29,336,564,762
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
Attributable to the equity owners of the Company
Other
comprehensive Undistributed Total owners’
Paid-in capital Capital surplus income Surplus reserves profits Minority interests equity
Balance at 1 January 2015 4,375,236,655 4,998,433,067 172,496,403 4,810,903,365 6,952,985,107 6,474,165,112 27,784,219,709
Movements for the year 2015
Total Comprehensive income - - 73,212,312 - 3,237,733,312 1,392,410,095 4,703,355,719
Capital contribution and withdrawal by
owners - - - - - (50,400,000) (50,400,000)
Profit distribution
Appropriation to surplus reserves - - - 1,001,288,410 (1,001,288,410) - -
Distribution for owners 875,047,331 - - - (1,750,094,662) (1,250,162,971) (2,125,210,302)
Share of equity in associates based on
shareholding - 2,681,295 - - - - 2,681,295
Capital surplus due to acquisition of
minority interests - 5,960,812 - - - (98,413,820) (92,453,008)
Others - 1,984 - - - - 1,984
Balance at 31 December 2015 5,250,283,986 5,007,077,158 245,708,715 5,812,191,775 7,439,335,347 6,467,598,416 30,222,195,397
The accompanying notes form an integral part of these financial statements.
Zhenhai Huang Xiaoqing Li Fei Meng
Legal representative Person in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
Other
comprehensive Undistributed Total owners’
Paid-in capital Capital surplus income Surplus reserves profits equity
Balance at 1 January 2016 5,250,283,986 5,609,821,843 245,708,715 5,812,191,775 4,539,664,589 21,457,670,908
Movements for the year
Total Comprehensive income - - (100,649,700) - 2,129,605,445 2,028,955,745
Profit distribution
Appropriation to surplus reserves - - - 1,032,810,043 (1,032,810,043) -
Distribution for owners - - - - (1,207,565,317) (1,207,565,317)
Share of equity in associates based on shareholding - (4,090,897) - - - (4,090,897)
Others - 21,217 - - - 21,217
Balance at 31 December 2016 5,250,283,986 5,605,752,163 145,059,015 6,845,001,818 4,428,894,674 22,274,991,656
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
Other
comprehensive Undistributed Total owners’
Paid-in capital Capital surplus income Surplus reserves profits equity
Balance at 1 January 2015 4,375,236,655 5,607,138,564 172,496,403 4,810,903,365 4,340,161,825 19,305,936,812
Movements for the year
Total Comprehensive income - - 73,212,312 - 2,950,885,836 3,024,098,148
Profit distribution
Appropriation to surplus reserves - - - 1,001,288,410 (1,001,288,410) -
Distribution for owners 875,047,331 - - - (1,750,094,662) (875,047,331)
Share of equity in associates based on shareholding - 2,681,295 - - - 2,681,295
Others - 1,984 - - - 1,984
Balance at 31 December 2015 5,250,283,986 5,609,821,843 245,708,715 5,812,191,775 4,539,664,589 21,457,670,908
The accompanying notes form an integral part of these financial statements.
Zhenhai Huang Xiaoqing Li Fei Meng
Legal representative Person in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
I General 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, China Guangfa Bank(now named
as Guangdong Province 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 City, Guangdong Province, the
People’s Republic of China. The Company’s parent company is Guangdong Province Yudean Group Co., Ltd.
(“Yudean”) and its ultimate holding company is the State-owned Assets Supervision and Administration Commission of
the People’s Government of Guangdong Province.
The Company’s issuing RMB ordinary shares (“A-share”) and domestic listed foreign shares (“B-share”) are listed for
transactions in Shenzhen Stock Exchange respectively on 26 November 1993 and 28 June 1995. As at 31 December
2016, the total share capital of the Company is RMB 5,250,283,986 with par value of RMB 1 each.
The Company and its subsidiaries (the “Group”) are principally engaged in the businesses of developing and operating
electric power plants in Guangdong Province, the PRC. For the information of subsidiaries of the Company, please refer
to Note VI.
The financial statement has been approved for issue by the Company’s Board of Directors on 24 April 2017.
II Summary of significant accounting policies and account estimates
The preparation of financial statements requires the use of certain accounting estimates, which involve the estimates in
the criteria for determining impairment for available-for-sale equity instruments (Note II (9)), the depreciation of fixed
assets (Note II (14), impaired long-term assets (Note II (19)), and recognition of deferred income taxes (Note II (25)),
etc.
Critical judgement for determining significant accounting policies by the Group are listed Note II(28).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(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 Standard for Business
Enterprises” or “CAS”), and “Information Disclosure Rule No. 15 for Companies with Public Traded Securities -
Financial Reporting General Provision” issued by China Security Regulatory Commission.
As at 31 December 2016, the Group’s net current liabilities amounted to RMB 5.712 billion. The Group is committed to
a capital expenditure of RMB 3.380 billion in the coming year. As such, it is exposed to liquidity risk to some extent.
The reason for net current liabilities is a portion of the Group’s capital expenditure is backed by short-term borrowings
and funds in hand. Management level of the Company plan to take following measures to ensure the Group continue to
obtain sufficient operating funds to repay debts due in 12 months starting 31 December 2016. Therefore, the financial
statements have been prepared on the basis of going concern:
(a) The Group continuously fenerates profit after its generator sets have successively launched 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 Yudean Finance Co., Ltd. (“Yudean Finance”)) in order to obtain sufficient financing credit lines.
As at 31 December 2016, the Group is granted about RMB 19.191 billion available line of credit from financial
institutions, among which about RMB 7.737 billion from Yudean Finance and about RMB 11.454 billion from other
commercial banks.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended 31 December 2016 are in compliance with the Accounting
Standards for Business Enterprises, and truly and completely present the financial position of the Consolidated and the
Company as at 31 December 2016 and of their financial performance, cash flows and other information for the year then
ended.
(3) Accounting year
The Group’s accounting year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency is Renminbi.
(5) Business combinations
(a) Business combinations involving enterprises under common control
The consideration the combining party paid for the combination and the carrying amount of the net assets obtained are
measured at carrying amount. The difference between the carrying amount of the net assets obtained and the carrying
amount of consideration paid for the combination is adjusted to share premium (capital premium) in the capital reserve.
If the balance of share premium (capital premium) is insufficient, any excess is adjusted to retained earnings. Any costs
directly attributable to the combination are recognized in profit or loss for the current period when occurred. The
transaction costs of issuing equity or debt securities for business combinations.
(b) Business combinations not involving enterprises under common control
The acquirer’s combining costs and the identifiable net assets obtained at the acquisition date are measured at fair value.
If the combining costs are greater than the fair value of identifiable net assets at the acquisition date, the difference is
recognized as goodwill; if the combining costs are less than the fair value of identifiable net assets at the acquisition
date, the difference is recognized in profit or loss for the current period. The direct acquisition-related costs arising from
the business combination are recognized as expenses in the periods in which the costs are incurred. The costs of the
issuance of equity or debt securities as a part of the consideration paid for the acquisition are included as a part of initial
recognition amount of the equity or debt securities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(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
that 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 the preparation of consolidated financial statements, if the accounting policies or accounting period among the
Company and subsidiaries are inconsistent, the financial statements of subsidiaries have been adjusted to conform to the
Company’s policies and accounting period. For business combination not obtained under common control, the financial
statements have been adjusted based on the fair value of net recognisable asset on the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial
statements. The portion of subsidiaries’ owners’ 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 minority interests and presented separately
in the consolidated financial statements under owners’ equity, net profits and total comprehensive income respectively.
When the Company sells assets to subsidiaries, the unrealised gains and losses should fully offset the net profit
attributed to shareholders of the parent company; when subsidiaries sell assets to the Company, the unrealised gains and
losses should be assigned and offset between the net profit attributed to shareholders of the parent company and
minority interests according to the Company’s distribution ratio of the subsidiary. The unrealised gains and losses
between subsidiaries should be assigned and offset between the net profit attributed to shareholders of the parent
company and minority interests according to the parent company’s distribution ratio of the subsidiary.
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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, and short-term, highly liquid investments, which
are readily convertible into known amounts of cash and are subject to an insignificant risk of change in value.
(8) Foreign currency transactions
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 currency are translated into RMB using the spot rate
of the balance sheet date. Exchange differences arising from these translations are recognised in income statement,
except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition,
construction or production of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary
items denominated in foreign currency that are measured at historical cost are translated into RMB at the balance sheet
date using the spot rate at the date of the transaction. The effect of changes in exchange rate of cash and cash equivalent
is separately disclosed in the cash flow statement.
(9) Financial instruments
(a) Financial assets
(i) Classification of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at fair value through
profit or loss, receivables, available-for-sale financial assets and held-to-maturity investments. The classification of
financial assets depends on the Group’s intention and ability to hold the financial assets. The financial assets of the
Group in current year include receivables and available-for-sale financial assets.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market.
Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated upon initial recognition as
available for sale and other financial assets which do not fall into any of the above categories.
II Summary of significant accounting policies and account estimates(continued)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
(9) Financial instruments(continued)
(a) Financial assets(continued)
(ii) Recognition and measurement
Financial assets are recognized at fair value on the balance sheet when the Group becomes a party to the contractual
provisions of the financial instrument. In the case of financial assets at fair value through profit or loss, the related
transaction costs occurred at the time of acquisition is recognized in profit or loss for the current period. For other
financial assets, transaction costs that are attributable to the acquisition of the financial assets are included in their initial
recognition amounts.。
Financial assets at fair value through profit or loss and available-for-sale financial assets are subsequently measured at
fair value. Investments in equity instruments are measured at cost when they do not have a quoted market price in an
active market and whose fair value cannot be reliably measured. Receivables are measured at amortized cost using the
effective interest method.
Gain or loss arising from a change in fair value of an available-for-sale financial asset is recognized directly in equity,
except for impairment losses and foreign exchange gains and losses arising from the translation of monetary financial
assets. When such financial asset is derecognized, the cumulative gain or loss previously recognized directly in equity is
recycled into profit or loss for the current period.
The Group assesses the carrying amount of financial assets other than those at fair value through profit or loss at each
balance sheet date. If there is objective evidence that the financial asset is impaired, an impairment loss is provided for.
Objective evidence indicating impairment of financial assets refers to the matter that actually occurs after the initial
recognition of financial assets, it will affect estimated future cash flows of financial assets, and its impact can be
reliably measured.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(9) Financial Instruments(continued)
(a) Financial assets(continued)
(iii) Impairment of financial assets(continued)
The objective evidence, of which provided for available-for-sale equity instruments being impaired, includes an
investment in an equity instrument with serious or prolonged decline. The Group assesses available-for-sale equity
instruments at each balance sheet date on an individual basis. If the fair value of equity instruments is less than its initial
investment cost of more than 50% (inclusive), or less than its initial investment cost for more than one year (inclusive),
it indicates that the equity instruments are impaired. If the fair value of equity instruments is less than its initial
investment cost of more than 20% ( inclusive) to 50% (exclusive), the Group will consider other relevant factors to
judge that whether equity instruments are impaired. The Group calculates the initial investment cost of initial
available-for-sale equity instruments investment using the weighted average method.
When an impairment loss on a financial asset carried at amortised cost has incurred, the amount of loss is measured at
the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding
future credit losses not incurred). If there is objective evidence that the value of the financial asset is recovered and the
recovery is related objectively to an event after the impairment is recognised, the previously recognised impairment loss
is reversed and the amount of reversal is recorded in profit or loss.
When an impairment loss on an available-for-sale financial asset has incurred, the difference between the present value
of the discounted cash flow of its book value and market return on a similar financial asset is recognised as impairment
loss, and recorded in current profit or loss. Recognised impairment loss cannot be reversed in subsequent periods.
(iv) Derecognition of financial assets
A financial asset is derecognised when any of the below criteria is met: (i) the contractual rights to receive the cash
flows from the financial asset expire; (ii) 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 (iii) 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.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration
received and the cumulative changes in fair value that have been recognised directly in equity, is recognised in profit or
loss.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(9) Financial Instruments(continued)
(b) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair value
through profit or loss and other financial liabilities. The financial liabilities of the Group are other comprise financial
liabilities, including payables, borrowings and debentures payable.
Payables, including accounts payable and other payables, are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method.
Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently
measured at amortised cost using the effective interest method.
Other financial liabilities with maturities no more than one year (inclusive) are classified as current liabilities. Other
financial liabilities with maturities over one year (inclusive) but are due within one year since the balance sheet date are
classified as the current portion of non-current liabilities. Others are classified as non-current liabilities.
A financial liability is derecognised or partly derecognised when the current obligation is discharged or partly
discharged. The difference between the carrying amount of the financial liability or the derecognised part of the
financial liability and the consideration paid is recognised in profit or loss.
(c) Determination of the fair value of the 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. Valuation techniques include using prices of recent market transactions between knowledgeable and willing
parties, reference to the current fair value of another financial asset that is substantially the same with this instrument,
and discounted cash flow analysis, etc. When a valuation technique is used to establish the fair value of a financial
instrument, it makes the maximum use of observable market inputs and relies as little as possible on entity-specific
inputs. When the observable inputs are not available or are unrealistic to obtained, unobservable inputs shall be used
(10) Receivables
Receivables comprise accounts receivable and other receivables. Accounts receivable from sale of goods or rendering of
services are initially recognised at fair value of the contractual payments from the buyer or service recipients.
II Summary of significant accounting policies and account estimates(continued)
(10) Receivables(continued)
(a) Receivables with amounts that are individually significant and subject to separate assessment for provision for bad debts
Receivables with amounts that are individually significant are subject to assessment for impairment on the individual
basis. If there is objective evidence that the Group will not be able to collect the amount under the original terms, a
provision for impairment of that receivable is made.
The criteria for determining “individually significant” amounts are top five accounts receivable in amount, any other
receivables with an individual amount more than RMB 5,000,000, and all long-term receivables.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
The method of providing for bad debts for those individually significant amounts is as follows: the amount of the
present value of the future cash flows expected to be derived from the receivable below its carrying amount.
(b) Receivables with amounts that are not individually significant but subject to separate assessment for provision for bad
debts.
The reason for making separate assessment for provision for bad debts is that there exists objective evidence that the
Group will not be able to collect the amount under the original terms of the receivable.
The provision for bad debts is determined based on the present value of future cash flows expected to be derived from
the receivable below its carrying amount.
The Group’s receivables mainly comprise receivables due from Guangdong Power Grid (“GPGC”) and from the
Group’s related parties, as well as government grants. According to historical experience and impairment tests made on
an individual basis, the Group’s undue receivables were considered to be portfolios with low credit risk, and thus the
Group did not provide allowance for doubtful accounts on these customer portfolios.
(11) Inventories
(a) Classification
Inventories include fuel and spare parts measured at the lower of cost and net realisable value.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(11) Inventories(continued)
(b) Cost of inventories transferred out
Cost of fuel transferred out is calculated using the weighted average method. Spare parts are amortised in full when
received for use.
(c) Basis for determining the net realisable value of inventories and provisioning methods for decline in value of inventories
Any excess of the cost over the net realisable value of inventories is recognised as a provision for diminution in the
value of inventories. Net realisable value is measured by the estimated selling price in the ordinary course of business
less the estimated costs necessary to make the sale and relevant taxes.
(d) The Group maintains a perpetual inventory system.
(12) 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 associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees over
which the Group has significant influence, but not control, on their financial and operating policies.
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. Investments in associates are accounted for
using the equity method.
(a) Determination of investment cost
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(12) Long-term equity investments(continued)
(a) Determination of investment cost(continued)
For long-term equity investments acquired through a business combination: 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 at the combination date; for
long-term equity investment 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: if the long-term equity investments are
acquired in cash, the initial investment cost shall be the purchase price actually paid; if the long-term equity investments
are acquired by issuing equity securities, the initial investment cost shall be the fair value of the equity securities.
(b) Subsequent measurement and recognition of related profit and loss
For long-term equity investments accounted for using the cost method, they are measured at the initial investment costs,
and cash dividends or profit distribution declared by the investees are recognised as investment income in profit or loss.
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 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 accordingly.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(12) Long-term equity investments(continued)
(b) Subsequent measurement and recognition of related profit and loss(continued)
For long-term equity investments accounted for using the equity method, the Group recognises the investment income
or losses according to its share of net profit or loss of the investee. The Group discontinues recognising its share of net
losses of an investee after the carrying amount of the long-term equity investment together with any long-term interests
that, in substance, form part of the investor’s net investment in the investee are reduced to zero. However, if the Group
has obligations for additional losses and the criteria with respect to recognition of provisions under the accounting
standards on contingencies are satisfied, the Group continues recognising the investment losses and the provisions. The
Company shall adjust the carrying amount of the long term investment for other changes in shareholders’ equity of the
investee (other than net profits or losses), and include the corresponding adjustment in shareholders’ equity. The
carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared
by an investee. The unrealised profits or losses arising from the intra-group transactions amongst the Group and its
investees are eliminated in proportion to the Group’s equity interest in the investees, and then based on which the
investment gains or losses are recognised. For the loss on the intra-group transaction amongst the Group and its
investees attributable to asset impairment, any unrealised loss is not eliminated.
(c) Basis for determining existence of control and significant influence over investees
Control is the power to govern the investee so as to obtain variable returns by participating in the related business
activities of the investees and the ability to affect the returns by exercising its power over the investees.
Joint control is the contractually agreed sharing of control over an investee’s economic activities, and exists only when
the strategic financial and operating decisions relating to the activities require the unanimous consent of the Group and
the parties sharing the control.
Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not
control or joint control over those policies.
(d) Impairment of long-term equity invest
The carrying amount of long-term equity investments in subsidiaries, joint venture, and associates is reduced to the
recoverable amount when the recoverable amount is less than the carrying amount (Note II (19)).
II Summary of significant accounting policies and account estimates(continued)
(13) 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
properties 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 in the period in which they are incurred.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
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 estimated net residual values that are expressed as a percentage of cost and the annual depreciation
(amortisation) rates of investment properties are as follows:
Annual
Estimated net depreciation (amortisation)
Estimated useful lives residual values rates
Buildings 30 years 5% 3.17%
When an investment property is transferred to owner-occupied properties, it is reclassified as fixed asset at the date of
the transfer. The carrying amount of the fixed asset shall be measured on the basis of fair value of the investment
property.
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 sale, 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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(14) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise plant and building, power generator equipment, motor vehicles and other equipment.
Fixed asset is recognised when it is probable that the related economic benefits will flow to the Group and its cost can
be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the acquisition
date. The fixed assets injected by the state-owned shareholder during the restructuring of corporation were initially
recorded at the valuated amount approved by the relevant authorities managing state-owned assets.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the
economic benefits associated with the fixed asset will flow to the Group and the costs can be reliably measured. The
carrying amount of those parts that are replaced is derecognised and all the other subsequent expenditures are
recognised in income statement when 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 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 residual values expressed as a percentage of cost and the annual depreciation
rates of fixed assets are as follows:
Estimated residual Annual
Estimated useful lives value depreciation rate
Plant and building 10 - 50 years 0% - 10% 1.80% - 10.00%
Power equipment 6 - 31 years 0% - 10% 2.90% - 16.67%
Motor vehicles 5 - 10 years 0% - 10% 9.00% - 20.00%
Other equipment 5 - 25 years 0% - 10% 3.60% - 20.00%
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation method applied to the
asset are reviewed, and adjusted as appropriate at least at each financial year-end.
(c) The carrying amount of a fixed asset is reduced to the recoverable amount when the recoverable amount is below the
carrying amount (Note II (19)).
II Summary of significant accounting policies and account estimates(continued)
(14) Fixed assets(continued)
(d) Recognition and measurement of fixed asset under finance lease
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
The lease that essentially transfers all the risks and returns related to the ownership of the asset is classified as finance
lease. The entry value of the fixed assets under finance lease the lower of its fair value and the present value of the
minimum lease payments. The difference between the entry value of the fixed asset under finance lease and the present
value of the minimum lease payment is recognised as unrecognised financing charges (Note II(26)(b)).
Fixed assets under finance lease share the same depreciation method with company owned fixed assets. If there is
reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leased asset
is depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the lease term
and its estimated useful life.
(e) Disposal of fixed assets
The carrying amount of a fixed asset is derecognized when the fixed asset is on disposal or when no future economic
benefit is expected to be generated from its use or disposal. Gains or losses arising from the retirement or disposal of an
item of fixed asset are determined as the difference between the net disposal proceeds and the carrying amount of the
item, and are recognised in profit or loss on the date of retirement or disposal.
(15) Construction in progress
Construction in progress is measured at its actual costs incurred. Actual costs include construction cost, installation cost,
capitalised borrowing costs, and any other costs directly attributable to bringing the asset to working condition for its
intended use. When the construction in progress is ready for its intended use, it is transferred to fixed assets and starts
depreciation the following month. When recoverable amount of the construction in progress is lower than its carrying
value, its carrying value is then reduced to the recoverable amount. (see Note II (19)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(16) Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a
substantially long period of time of acquisition and construction 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, the borrowing costs incurred thereafter are recognised in income statement. Capitalisation of
borrowing costs is suspended when the acquisition or construction of a fixed asset is interrupted abnormally and the
interruption lasts for more than 3 months, until the acquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the
amount of borrowing costs eligible for capitalisation is determined by deducting any interest income earned from
depositing the unused specific borrowings in the banks or any investment income arising on the temporary investment
of those borrowings during the capitalisation period.
For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the
amount of borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest
rate of general borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over
the amount of specific borrowings. The effective interest rate is the rate at which the estimated future cash flows during
the period of expected duration of the borrowings or applicable shorter period are discounted to the initial amount of the
borrowings.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(17) Intangible assets
Intangible assets mainly including land use rights, sea use rights, software,
associated projects for electricity transmission and transformation, microwave engineering and transportation
engineering are measured at cost. Intangible assets contributed by the state-owned shareholders at the incorporation of a
limited company are initially recorded at the valuation amount recognised by the state-owned assets supervision and
administration department.
(a) Land use right and sea use right
Land use rights are amortised on a straight-line basis over their approved period of 20 to 70 years. If the purchase costs
of land and attached buildings cannot be reasonably allocated between the land use right and the buildings, the purchase
costs are recognised as fixed assets.
Sea use rights are amortised on a straight-line basis over their approved period of 50 years.
(b) Associated projects for electricity transmission and transformation, microwave engineering and transportation
engineering
Projects for electricity transmission and transformation and microwave engineering are undertaken by the Group for the
grid connection project for loading to Guangdong Guangdian Power Grid. From the start of use, they are amortised on a
straight-line basis over their benefit period of 16 years.
Transportation engineering projects are amortised on a straight-line basis over their benefit period of 10 years to 20
years.
(c) Other intangible assets
Besides land use right, sea use right, associated projects for electricity transmission and transformation, microwave
engineering and transportation engineering, other intangible assets are amortized on a straight-line basis over their
expected life of 2 years to 25 years.
(d) Periodic review on useful life and method of amortisation
For intangible assets with finite useful life, their expected life and amortisation method are reviewed and adjusted at the
end of every year.
(e) Impairment of intangible assets
The carrying amount of intangible assets is reduced to the recoverable amount when the recoverable amount is less than
the carrying amount (Note II(19)).
II Summary of significant accounting policies and account estimates(continued)
(18) 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
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
and subsequent periods. 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.
(19) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment property measured at cost
and long-term equity investments in subsidiaries, joint venture, and associates are tested for impairment if there is any
indication that an asset may be impaired at the balance date. If the result of the impairment test indicates that the
recoverable amount of the 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. A provision for asset impairment is determined and recognised on an individual asset basis. If
it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of the 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 value 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 asset impairment loss mentioned above is recognised, it is not allowed to be reversed for the value recovered
in the subsequent periods.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(20) Employee benefits
Employee benefits include short-term employee benefits, post-employment benefits and termination benefits provided
in various forms of consideration in exchange for service rendered by employees or compensations for the termination
of employment relationship.
(a) Short-term remunerations
Short-term remunerations mainly include wages or salaries, bonuses, allowances and subsidies, staff welfare, medical
insurance, work injury insurance, maternity insurance, housing funds, labour union funds, employee education funds,
short-term paid absence. Short-term remunerations are recognised as current liabilities in the accounting period in which
the service has been rendered by the employees, and as costs of assets or expenses to whichever the employee service is
attributable. Non-monetary benefits are measured at fair value.
(b) Post-employment benefits
The Company’s post-employment benefits scheme includes both Defined Contribution Plan (DCP) and Defined Benefit
Plan (DBP). A DCP is a pension plan under which the Company pays fixed contributions into a separate entity and has
no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all
employees the benefits relating to employee service in the current and prior periods. A DBP is a pension plan that is not
a defined contribution plan. During the periods of reporting, the Company’s post-employment benefits scheme mainly
includes basic pension insurance and unemployment insurances, both of which are DCP.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(20) Employee benefits(continued)
(b) Post-employment benefits(continued)
Basic pension insurance
Employees of the Group have entered into the social pension insurance scheme organised by local labour and social
security department. The Group pays basic pension insurances to local labour and social security department monthly
according to local insurance base and corresponding rate. Local labour and social security department is obligated to
pay basic pensions to retired employees.
Supplementary pension insurance
The company purchases supplementary pension insurance on behalf of employees, and pays pension insurances
according to the policies of Yudean Group.
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.
(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 at the earlier of the following dates: 1) when
the Group cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or
a curtailment proposal; 2) when the Group recognises costs or expenses related to the restructuring that involves the
payment of termination benefits.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(20) Employee benefits(continued)
(c) Termination benefits(continued)
Early retirement benefits
The Group provides early retirement benefits for employees who enrolled in internal retirement arrangement. Early
retirement benefits refer to wages and social benefit paid by the Group on behalf of the employees who have not meet
retirement age requirement but voluntarily retire after permission from the Group’s management level. The Group starts
paying early retirement benefits to early retired employees from the start date of their early retirement until they reach
the statutory retirement age. For the accounting treatment of early retirement benefits, the Group adopts the same
method as termination benefits, that is, upon confirming the termination benefits comply with relevant conditions,
proposed payment of early retirement wages. and social security from the start date of termination of services to the
date of statutory retirement age are recognised as liability and recorded into profit and loss at lump sum. The
discrepancy caused by change in actuarial assumption and adjustment of welfare standard is recorded into current profit
or loss.
Early retirement benefits that are expected to be paid within one year after balance sheet date are disclosed as current
liabilities.
(21) Dividend distribution
Cash dividends distribution is recognised as a liability in the period in which the dividends are approved by the
shareholders’ meeting.
(22) Provisions
A provision is recognised for an obligation related to a contingency if the Group has a present obligation such as
product warranty and loss contract, etc., that can be estimated reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation,
considered factors such as risks and uncertainties related to contingencies, and time value of money, etc. Where the time
value of money is material, provisions are stated at the discounted value of estimated future cash flow. Increase in the
book value of the provision caused by discounted reduction over time is recognised as interest expense.
The carrying amounts of provisions are reviewed at each balance sheet date and
adjusted based on the latest best estimates.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(22) Provisions(continued)
Provisions that are expected to be paid within one year after balance sheet date are disclosed as current liabilities.
(23) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for
the sale of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of discounts and
returns.
Revenue is recognised in profit or loss when it is probable that the economic benefits will flow to the Group, the
revenue and costs can be measured reliably and the following respective conditions are met：
(a) Revenue from sales of electricity and heat energy
Revenue is recognised when electricity and heat energy are supplied to grid
companies or customers.
(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 and the recipient resource
utilisation confirms receipt.
(c) Rendering of services
Revenue from rendering of services is measured at the fair value of the consideration received or receivable under the
contract or agreement.
The Group provides external bidding agency service and maintenance service.
The Group provides external bidding agency service, upon the completion of the bidding service, revenue is recognised
based on the pricing difference between the electricity consumption of bidding and auction price, and the customer’s
conventional price of electricity.
The Group provides external maintenance service, revenue is recognised according to the percentage completion
method, determined by percentage of the total cost incurred.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(23) Revenue recognition(continued)
(d) Revenue from sale of certified emission reductions (CERs)
The Group sells CERs provided by its natural gas facilities and wind power facilities. These facilities are registered with
the Clean Development Mechanism (CDM) Executive Board (EB) of the United Nations as CDM projects under the
Kyoto Protocol. The Company also sells voluntary emission reductions (“VERs”) attributable to the electricity
generated from CDM projects before getting registered with CDMEB.
Revenue related to CERs and VERs is recognised when the following conditions are met:
- The counterparty has committed to buy CERs or VERs;
- The amount of income from selling CERs or VERs can be reliably measured;
- The Company has generated the related electricity.
(e) Transfer of asset usage rights
Interest income is recognised based on the length of time of the deposits or principal outstanding and the applicable
effective interest rate.
Rental income for operation lease is recognised according to straight-line method of allocation over the rental period.
(24) Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the Group at nil
consideration, including refund of taxes and financial subsidies, etc.
A government grant is recognised when the conditions attached to it can be complied with and the government grant can
be received. Situations where government grant is monetary asset, it is measured at the amount received or receivable.
When the government grant is non-monetary asset, it is measured according to fair value; situations where fair value of
the grant cannot be reliably measured, the grant is measured at its nominal value.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(24) Government grants(continued)
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 will be recorded as deferred income and recognised evenly in profit or loss over the
useful lives of the related assets. However, the government grants measured at their nominal amounts will be directly
recorded in profit and loss for the current period.
Government grants related to income will be recorded as deferred income and recognised in profit or loss in the period
in which the related expenses are recognised if the grants are intended to compensate for future expenses or losses, and
otherwise recognised in profit or loss for the current period if the grants are used to compensate for expenses or losses
that have been incurred.
(25) Deferred tax asset and deferred tax liability
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 liabilities is recognised for the temporary differences resulting 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, joint venture,
and associates, 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 and associates 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.
II Summary of significant accounting policies and account estimates(continued)
(25) Deferred tax asset and deferred tax liability(continued)
Deferred tax assets and liabilities are offset when:
the deferred taxes are relate to the same tax payer within the Group and same fiscal authority, and;
that tax payer has a legally enforceable right to offset current tax assets against current tax liabilities.
(26) Leases
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of a leased asset to
the lessee, irrespective of whether the legal title to the asset is eventually transferred. An operating lease is a lease other
than a finance lease.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
(a) Operating lease
Operating lease expenses are recorded in relevant cost of capital or current profit or loss according to straight-line
method over the lease period.
Operating lease revenue are recognised according to straight-line method over the lease period.
(b) Finance lease
When the Group acquires an asset under a finance lease, the asset is measured at an amount equal to the lower of its fair
value and the present value of the minimum lease payments, each determined at the inception of the lease. The
difference between the fair value of the leased assets and the minimum lease
payments is recognised as unrecognised finance charges. Unrecognised finance charge under finance lease is amortised
using an effective interest method over the lease term. The minimum lease payment net of unrecognised finance charges
are disclosed as long-term payable.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(27) Segment reporting
The Group identifies operating segments based on the internal organisation structure, management requirements and
the internal reporting system, and discloses segment information of reportable segments 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 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 a single operating segment.
(28) Critical accounting estimates and judgments
The Group continually evaluates the critical accounting estimates and key judgments applied based on historical
experience and other factors, including expectations of future events that are believed to be reasonable. The critical
accounting estimates and key assumptions that have a significant risk of causing material adjustments to the carrying
amounts of assets and liabilities within the next accounting year are outlined below:
(a) Impairment of assets other than inventories and financial assets
As described in Note II (19)，the Group tests for impairment for assets that have indication of impairment as at balance
sheet date, including fixed assets, construction in progress, intangible assets with finite useful life, investment
properties measured at cost, and long-term equity investment in subsidiaries, joint venture, and associates, etc.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(28) Critical accounting estimates and judgments(continued)
(a) Impairment of assets other than inventories and financial assets(continued)
When judging whether there is evidence of impairment in the above assets,
management assesses and analyses the following: (1) whether any event that
causes impairment has occurred; (2) whether the estimated available present
value of cash flows from continual use or disposal of assets is lower than the
carrying value of the asset; and (3) whether the assumptions used for
the estimated present value of future cash flows are appropriate.
The Group adopted assumptions in determining whether assets are impaired.
Any changes in the discounted rate and growth rate used in calculating the
present value of future cash flows may significantly affect the present value
used in the impairment test, resulting in the impairment of the above long-term
assets.
(b) Useful lives of plants, buildings and equipment
The estimated useful lives of plants, buildings and equipment are determined
by management after taking into account their durability and past maintenance
records based on the industry practice. The estimated useful life of the assets is
reviewed at each year-end with appropriate adjustments made accordingly.
Any changes in the estimated useful life of fixed assets may have significant
impact on the Group’s net profits.
(c) Income tax
The decision whether to recognise deferred tax assets arising from deductible
tax losses and deductible temporary differences depends largely on
management’s judgement as to whether sufficient future taxable profits will be
available against which the assets can be utilised in the future periods. The
calculation of future taxable profits involves much judgements and estimations,
and is affected by the Group’s tax planning strategy and overall economic
environment. Different judgements and estimates will affect the recognition of
deferred tax assets and their recognised amounts.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
II Summary of significant accounting policies and account estimates(continued)
(28) Critical accounting estimates and judgments(continued)
(d) Deferred tax assets
When assessing whether there will be sufficient future taxable profits available
against which the deductible temporary differences can be utilised, the Group
recognises deferred tax assets to the extent that it is probable that future taxable
profits will be available against which the deductible temporary differences can
be utilised, using tax rates that would apply in the period when the asset would
be utilised. In determining the amount of deferred tax assets, the Group exercises judgements about the estimated
timing and amount of taxable profits of the following periods, and of the tax rates applicable in the future according to
the existing tax policies and other relevant regulations. Differences between such estimates and the actual timing and
amount of future taxable profits will affect the amount of deferred tax assets.
III Main taxation items and applicable tax rates
(1) The main taxation items and applicable tax rates for the Group are as follows:
Taxation items Tax basis Tax rates
Value-added tax (“VAT”) (a) Taxable value added amount (Tax payable is 3%，6%，13%, and 17%
calculated using the taxable sales amount
multiplied by the applicable tax rate less
deductible VAT input of current period)
Business tax (a) Taxable turnover amount 3% or 5%
City maintenance and construction Amount of VAT, business tax and consumption 5% - 7%
tax tax paid
Education surcharges Based on business tax and VAT paid 3%
Local education surcharges Based on business tax and VAT paid 2%
Corporate income tax(b) Taxable income 12.5% and 25%
(a) According to the Notice on Tax Policy Concerning Nationwide Implementation of Fully open the Business Tax reform
VAT Pilot and relevant regulations by Ministry of Finance and State Taxation Administration (Notice Caishui [2016] No.
36) , starting 1 May 2016, the Group’s revenue from electric power overhaul, loan interest, and leasehold of real estate
are applicable for VAT, with tax rates 17%, 6%,and 17% respectively. Those businesses are applicable for business tax
prior to 1 May 2016, with tax rates 3%, 5%, and 5% respectively.
(b) Except for the subsidiaries Guangdong Yudean Xuwen Wind Power Electricity Co., Ltd. (“Xuwen Wind Power”) and
Guangdong Yudean Dianbai Wind Power (“Dianbai Wind Power”) (see Note III (2)), the applicable tax rate for the
Company and its subsidiaries is 25%.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
III Main taxation items and applicable tax rates(continued)
(2) Tax preferential and approvals
Pursuant to the approval documents (Caishui [2008] No.46 and Guo Shui Fa [2009] No.80), Xuwen Wind Power is
exempted from paying corporate income tax in the first three years counting from the year profits are recorded, and can
enjoy half rate reduction in the following three years. As the local taxation bureau considered that Xuwen Wind Power
posted profits for the first time in 2012, the applicable corporate income tax rate for Xuwen Wind is 12.5% in 2016
(2015: 12.5%).
Pursuant to the approval documents (Cai Shui [2008] No.46 and Guo Shui Fa [2009] No.80), Dianbai Wind Power is
exempt from paying corporate income tax in the first three years counting from the year profits are recorded, 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, the applicable corporate income tax rate for Dianbai Wind is 0% in 2016 (2015:
25%).
In addition, 50% of VAT levied on the sales of electricity generated by Guangdong
Yudean Shibeishan Wind Power Co., Ltd (“Shibeishan”), Guangdong Yudean
Zhanjiang Wind Power Generation Co., Ltd.(“Zhanjiang Wind Power”), Xuwen
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 (Notice Cai Shui [2015] No.74).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements
(1) Cash at bank and on hand
31 December 2016 31 December 2015
Cash on hand 49,457 78,223
Deposits with bank 385,820,099 779,724,597
Deposits with Yudean Finance (b) 4,799,004,094 4,447,603,905
Other monetary funds (c) - 10,000,000
5,184,873,650 5,237,406,725
(a) As at 31 December 2016, the Group has no offshore deposit. (31 December 2015: nil)
(b) Deposits with Yudean Finance refers to the deposits placed with Guangdong Yudean Finance Co., Ltd. (“Yudean
Finance”). Yudean Finance is a financial institution established with the approval of the People’s Bank of China. Yudean
is the parent company of Yudean Finance.
(c) As at 31 December 2016, the Group has no restricted deposit (31 December 2015: The Group’s other monetary funds are
used as security deposit for bank acceptance).
(2) Accounts receivable
31 December 2016 31 December 2015
Accounts receivable 2,776,061,909 2,484,683,890
Less: Provision for bad debts - -
2,776,061,909 2,484,683,890
(a) The ageing analysis of accounts receivable is as follows:
31 December 2016 31 December 2015
Within 1 year (inclusive) 2,774,635,805 2,484,683,890
1 to 2 years (inclusive) 1,426,104 -
2,776,061,909 2,484,683,890
As at 31 December 2016 and 31 December 2015, basing on the analysis of financial conditions and credit records on
customers, the accounts receivable aged between one and two years are expected to be fully recovered with no
impairment, therefore impairment loss is not separately recognized. As for other accounts receivable aged within one
year are mainly sales volume for electric power which have been recovered after date and therefore no risk of
impairment.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(2) Accounts receivable(continued)
(b) Accounts receivable by category is as follows:
31 December 2016 31 December 2015
Book Value Provision for bad debts 1 Book Value Provision for bad debts
Percenta Percenta Percenta Percenta
Amount ge(%) Amount ge(%) Amount ge(%) Amount ge(%)
Individually
significant and
assessed
individually for
impairment 2,728,506,320 98.29% - - 2,464,272,746 99.18% - -
Individually
insignificant but
assessed
individually for
impairment 47,555,589 1.71% - - 20,411,144 0.82% - -
2,776,061,909 100.00% - - 2,484,683,890 100.00% - -
(c) Five largest accounts receivable by debtor as at 31 December 2016
Relationship Percentage of
with the Provision for bad total accounts
Company name company Amount debts receivable (%)
Guangdong Power Grid Co.,
Ltd. Third party 2,580,336,505 - 92.95%
Shenzhen Power Supply
Bureau Third party 88,750,938 - 3.20%
Guangdong Yudean Group
Co., Ltd. Shajiao Power
Plant C(“Shajiao C”) Related party 26,500,702 - 0.96%
GPGC – Zhanjiang Power
Supply Bureau Third party 22,510,541 - 0.81%
GPGC – Jieyang Power
Supply Bureau Third party 10,407,634 - 0.37%
2,728,506,320 - 98.29%
(d) There is no accrual, recovery, or reversal of provision for bad debts for 2016, and no write-off for accounts receivable.
(2015: nil)
(e) As at 31 December 2016, the Group’s accounts receivable with carrying amount of RMB 316,986,314 (31 December
2015: RMB 498,786,073) and the on-grid power tariff collection right were pledged to banks to obtain long-term
borrowings of RMB 2,537,296,396, including RMB 184,196,290 due within one year (31 December 2015: RMB
2,526,301,960 (RMB 70,645,920 of which was due within one year)) (see Notes IV29(a)，31(a)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(3) Advances to suppliers
(a) The ageing analysis of advances to suppliers is as follows:
31 December 2016 31 December 2015
Amount Percentage(%) Amount Percentage(%)
Within 1 year
1,062,290,930 99.76%
(inclusive) 1,061,957,143 99.84%
1 to 2 years
1,680,510 0.16%
(inclusive) 264,229 0.02%
2 to 3 years
68,229 0.01%
(inclusive) 457,834 0.04%
Over 3 years 782,453 0.07% 1,022,424 0.10%
1,064,822,122 100.00% 1,063,701,630 100.00%
As at 31 December 2016, the advances to suppliers of significant amounts with ageing over one year of RMB 2,531,192
(31 December 2015: RMB 1,744,487) mainly are prepayments for spare parts and materials.
(b) Five largest balances of prepayments by debtor as at 31 December 2016
Amount Percentage(%)
Total of the five largest balances 997,602,924 93.69%
(4) Interests receivable
31 December 2016 31 December 2015
Interests receivable from fixed term deposit 16,681,118 10,232,658
(5) Other receivables
31 December 2016 31 December 2015
By-product sales 66,823,439 94,220,368
Petty cash 24,005,804 9,263,643
Prepayments for construction 20,197,811 30,660,145
Government grants 4,226,820 32,485,261
Others 24,669,780 28,635,154
139,923,654 195,264,571
Less: Provision for bad debts (6,423,698) (6,365,291)
133,499,956 188,899,280
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(5) Other receivables(continued)
(a) The ageing analysis of other receivables is as follows:
31 December 2016 31 December 2015
Within 1 year 104,484,177 161,748,873
1 to 2 years 6,717,747 1,812,363
2 to 3 years 1,061,690 5,323,449
Over 3 years 27,660,040 26,379,886
139,923,654 195,264,571
The ageing is counted starting from the date when other receivables are recognized.
As at 31 December 2016, the Group’s others receivables with the amount of RMB 25,898,935 (31 December 2015: RMB
27,150,407) have been overdue. While basing on the analysis of financial conditions and credit records on debtors, the
Group is concerned that this part are able to be recovered with no existence of impairment so that impairment loss is not
separately recognized. The analysis of this part is as follows:
31 December 2016 31 December 2015
1 to 2 years 5,476,603 1,812,363
2 to 3 years 473,906 2,519,808
Over 3 years 19,948,426 22,818,236
25,898,935 27,150,407
(b) Other receivables by category:
31 December 2016 31 December 2015
Book Value Provision for bad debts Book Value Provision for bad debts
Percenta Percenta Percenta Percenta
Amount ge(%) Amount ge(%) Amount ge(%) Amount ge(%)
Individually
significant
and assessed
individually
for
impairment 85,142,409 60.85% - - 138,170,845 70.76% - -
Individually 54,781,245 39.15% (6,423,698) 11.73% 57,093,726 29.24% (6,365,291) 11.15%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
insignificant
but assessed
individually
for
impairment
100.00 100.00
139,923,654 % (6,423,698) 4.59% 195,264,571 % (6,365,291) 3.26%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(5) Other receivables(continued)
(c) Addition, recovery or reversal, and write-off for provision of bad debts during 2016
31 December 2016 31 December 2015
Beginning balance of the year (6,365,291) (6,383,754)
Additions during the year (58,407) (2,327)
Recovery or reversals for the year - 20,790
Ending balance of the year (6,423,698) (6,365,291)
(d) Five largest balances of other receivables by debtor as at 31 December 2016 are as follows:
Percentage of Provision for
other receivables bad debts at
Balance at end in total the end of the
Nature of the year Ageing year
Guangdong Yudean
Environmental Protection Within 1
Co., Ltd. By-product sales 66,823,439 year 47.76% -
Huidong Finance Bureau Over 3
Advances for land 18,318,970 years 13.09% -
Huilai Country Office, State
Administration of Within 1
Taxation Tax refunds 3,552,077 year 2.54% -
Shanwei Yuehong Investing Advances for rent and Within 1
Co., Ltd. utilities 2,892,900 year 2.07% -
Huilai Xincheng Industrial Within 1
Co., Ltd. Rental deposit 2,892,766 year 2.07% -
94,480,152 67.53% -
(e) As at 31 December 2016, the analysis of the Group’s receivables of government grants is as follows:
Name of government Expected date of receipt, amount and
grant Closing balance Ageing basis of the grant
Huilai Country Expected to be fully recovered in June
Office, State
Administration of Immediate Refund of
Taxation VAT 3,552,077 Within 1 year
Xuwen Country Expected to be fully recovered in June
Office, State
Administration of Immediate Refund of
Taxation VAT 674,743 Within 1 year
4,226,820
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(6) Inventories
(a) Inventories by category:
31 December 2016 31 December 2015
Provision for Provision for
decline in the decline in the
value of value of
Book value inventories Carrying value Book value inventories Carrying value
Fuel 806,132,327 - 806,132,327 617,225,212 - 617,225,212
Spare parts 739,267,517 (59,602,850) 679,664,667 762,897,800 (62,309,494) 700,588,306
Others 27,356,247 - 27,356,247 15,841,105 - 15,841,105
1,572,756,091 (59,602,850) 1,513,153,241 1,395,964,117 (62,309,494) 1,333,654,623
(b) Provisions for impairment of inventories
Written back during the year
31 December 2015 Reversal or write-off Others 31 December 2016
Spare parts (62,309,494) 2,706,644 - (59,602,850)
As at 31 December 2016, the Group made provision for decline in the value of inventories because some spare parts were
rendered useless and impaired as a result of technology upgrade.
(c) Provision for impairment of inventories are analysed as follows:
Basis for net realisable value Reason for reversal or write-off of provision for decline in
the value of inventories in the current year
Spare parts Market price Inventories have been scrapped
(7) Other current assets
31 December 2016 31 December 2015
Deductible VAT 868,022,220 583,680,487
Prepayment of income tax 12,496,080 3,921,884
Others 1,537,291 50,859,601
882,055,591 638,461,972
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(8) Available-for-sale financial assets
31 December 2016 31 December 2015
Available-for-sale equity instruments
- measured at fair value 419,736,308 553,350,488
Available-for-sale equity instruments
- measured at cost 859,651,686 541,000,000
Less: Provisions for impairment of value - -
1,279,387,994 1,094,350,488
(a) Related information of available-for-sale financial assets is analysed as follows:
Available-for-sale financial assets measured at fair value:
31 December 2016 31 December 2015
Available-for-sale equity instruments
- Fair value 419,736,308 553,350,488
- Cost 255,328,616 255,328,616
- Accumulated to other comprehensive income 164,407,692 298,021,872
- Provision for impairment - -
(i) As at 31 December 2016, the Company held 12,600,000 tradable A shares in Shenzhen Energy and the investment cost
was RMB 15,890,628. The investment was stated at fair value determined with reference to the market price. During the
year, losses of RMB 37,170,000 (2015: gains of RMB 29,988,000) in fair value were recognized in other comprehensive
income accordingly.
(ii) As at 31 December 2016, the Company held 55,532,250 tradable A shares in Shenergy and the investment cost was RMB
235,837,988. The investment was stated at fair value determined with reference to the market price. During the year,
losses of RMB 93,294,180 (2015: gains of RMB 60,530,153) in fair value were recognized in other comprehensive
income accordingly.
(iii) As at 31 December 2016, the Company held 1,800,000 shares of GMG International Tendering Co., Ltd. traded at the
National Equities Exchange and Quotations system and the investment cost was RMB 3,600,000. The investment was
stated at fair value determined with reference to the market price. During the year, losses of RMB 3,150,000 (2015: gains
of RMB 6,750,000) in fair value were recognized in other comprehensive income accordingly.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(8) Available-for-sale financial assets(continued)
(b) Available-for-sale financial assets measured at cost:
Shareholding Cash
31 December Increase 31 December ratio in dividends for
2015 during the year 2016 investees(%) the year
Available-for-sale equity
instruments - at cost
- Shenzhen Capital Group Co.,
Ltd. 115,000,000 - 115,000,000 3.67% 15,435,000
- Sunshine Insurance Group
Corporation 356,000,000 - 356,000,000 3.38% 21,000,000
- South Sea Wind Electricity
Development Co., Ltd. 70,000,000 - 70,000,000 10.00% -
- Weixin Yuntou Yudean Zhaxi
Energy Co., Ltd. (“Weixin
Yuntou”)(Note IV10(b)(i)) - 318,651,686 318,651,686 19.55% -
541,000,000 318,651,686 859,651,686 36,435,000
Available-for-sale equity
instruments – provisions
for impairment - - - -
541,000,000 318,651,686 859,651,686 36,435,000
Available-for-sale financial assets measured at cost are mainly unlisted equity investments held by the
Company. These investments are not quoted in the active market and the range of variation of the estimate of the fair
values is relatively high, and the various probabilities adopted to determine the estimate of the fair values cannot be
reasonably determined, therefore the fair values of these investments cannot be measured reliably.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(9) Long-term receivables
31 December 2016 31 December 2015
Provision for Carrying Provision for Carrying Range of
Item Book value bad debts amount Book value bad debts amount discount rate
Sales and leaseback 5.31%
deposits 136,075,412 - 136,075,412 128,640,631 - 128,640,631 -7.05%
As at 31 December 2016, the Group’s long-term receivables mainly represented the present value of RMB 50,000,000 of
deposits paid by Zhanjiang Zhongyue Energy Co., Ltd (“Zhongyue Energy”) for its fixed assets (31 December 2015:
RMB 50,000,000) held under sales and leaseback and RMB 110,000,000 of deposits paid by Guangdong Jinghai Power
Co., Ltd (“Jinghai Power”) for its fixed assets (31 December 2015: RMB 110,000,000) held under sales and leaseback.
(10) Long-term equity investments
31 December 2016 31 December 2015
Investment in joint venture(a) 584,241,360 601,637,346
Investment in associates(b) 4,848,396,390 5,322,772,813
5,432,637,750 5,924,410,159
Less: Provisions for impairment of long-term equity
investments - -
5,432,637,750 5,924,410,159
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(10) Long-term equity investments(continued)
(a) Joint venture
Increase / decrease during the year
Investment Declared Closing
income distribution of balance of
recognised Other cash provision
31 December Increase in Decrease in under equity comprehensive Other equity dividends or Provision for 31 December for
2015 capital capital method income movements profits impairment Others 2016 impairment
Guangdong Electric
Power Industry Fuel
Co., Ltd. (“Industry
Fuel”) 601,637,346 - - 62,593,350 - - (79,989,336) - - 584,241,360 -
See relevant information on rights and interests in joint venture in Note VI(2).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(10) Long-term equity investments(continued)
(b) Associates
Increase / decrease during the year
Investment Declared Closing
income distribution balance of
recognised Other of cash Provision Disposal provision
31 December Increase in Decrease in under equity comprehensive Other equity dividends or for during the 31 December for
2015 capital capital method income movements profits impairment year 2016 impairment
Shanxi Yudean Energy
Co., Ltd. (“Shanxi
Yudean Energy”) 913,606,650 - - 92,786,742 - - (8,000,000) - - 998,393,392 -
Guangdong Yudean
Finance Co., Ltd.
(“Yudean Finance”) 670,229,369 - - 56,844,340 - - (59,406,856) - - 667,666,853 -
Guangdong Guohua
Yudean Taishan
Power Generation
Company(“Taishan (306,239,183
Electric”) 2,104,305,209 - - 172,424,801 - - ) - - 1,970,490,827 -
Guangdong Yudean
Shipping Co.,
Ltd.(“Yudean
Shipping”) 940,425,774 - - 3,445,336 108,795 (4,090,897) (4,556,455) - - 935,332,553 -
Yudean Holding West
Investment Co.,
Ltd.(“West
Investment”) 264,811,291 - - (64,251,850) (547,859) - - - - 200,011,582 -
(318,651,686
Weixin Yuntou(i) 357,675,740 - (39,024,054) - - - - ) - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(10) Long-term equity investments(continued)
(b) Associates(continued)
Increase /
decrease
during the
year
Investment Declared Closing
income distribution balance of
recognised Other of cash Provision Disposal provision
31 December Increase in Decrease in under equity comprehensive Other equity dividends or for during the 31 December for
2015 capital capital method income movements profits impairment year 2016 impairment
Huaneng Shantou Wind
Power Company
(“Shantou Wind
Power”) 57,546,942 - - 4,439,284 - - - - - 61,986,226 -
Yangshan Jiangkeng
Hydropower Station
Co., Ltd. (“Jiangkeng
Hydropower”) 5,991,055 - - - - - - - - 5,991,055 -
Yangshan Centre Keng
Electric Co., Ltd.
(“Centre Keng
Electric”) 8,180,783 - - 1,698,988 - - (1,355,869) - - 8,523,902 -
(379,558,363 (318,651,686
5,322,772,813 - - 228,363,587 (439,064) (4,090,897) ) - ) 4,848,396,390 -
(i) As at 27 May 2016, the controlling equity owner of Weixin Yuntou increased its investment in Weixin Yuntou. The Company’ proportion of investment in Weixin Yuntou were diluted
to from 25.66% to 19.55%, in the meantime, the Company’s proportion of votes in Weixin Yuntou decreased to 19.55%. However the Company’s voting power is only concerned with
general administration management and has not participated or influenced Weixin Yuntou’s financial and operational decisions by all means. Consequently, the Company does not
have significant influence over Weixin Yuntou and transfers it to available-for-sale financial assets (see Note IV(8)).
The information of interests in associates is disclose in Note VI (2).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(11) Investment properties
Plant and building
Cost
-Balances at the beginning and end of the year 20,135,165
Accumulated depreciation
-Balance at the beginning of the year (10,567,330)
-Charge for the year (635,598)
-Balance at the end of the year (11,202,928)
Carrying amount
-At the end of the year 8,932,237
-At the beginning of the year 9,567,835
(12) Fixed assets
Power
Plant and generation
Item building equipment Motor vehicles Other equipment Total
Cost
31 December 2015 16,864,671,692 53,095,927,527 606,081,985 1,077,417,960 71,644,099,164
Additions during the year
Acquisition 5,529,751 30,502,227 16,674,145 28,686,607 81,392,730
Transfer from
construction in
progress(c) 255,168,991 2,039,343,205 7,449,940 65,726,675 2,367,688,811
Adjustment for project
settlement differences 12,482,579 (308,670,804) - - (296,188,225)
Disposal during the year (14,917,780) (114,433,906) (17,962,995) (11,373,940) (158,688,621)
31 December 2016 17,122,935,233 54,742,668,249 612,243,075 1,160,457,302 73,638,303,859
Accumulated depreciation
(20,534,743,932
31 December 2015 (5,016,638,465) ) (422,262,704) (720,242,703) (26,693,887,804)
Addition in the current
year
Charge for the year(b) (628,923,381) (3,223,347,371) (20,064,404) (67,212,004) (3,939,547,160)
Decrease in the current
year
Disposal during the
year 1,555,989 97,421,652 16,569,342 10,456,066 126,003,049
(23,660,669,651 (30,507,431,915
31 December 2016 (5,644,005,857) ) (425,757,766) (776,998,641) )
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(12) Fixed assets(continued)
Power
Plant and generation
Item building equipment Motor vehicles Other equipment Total
Provision for impairment
31 December 2015 (117,320,986) (496,035,008) (2,682,046) (4,005,699) (620,043,739)
Addition in the current
year
Charge for the year(d) (11,709,278) (695,527,817) - (6,860) (707,243,955)
Decrease in the current
year
Disposal during the
year - 205,729 359,425 4,392 569,546
Transfer to disposal on
fixed assets - 10,531,725 - - 10,531,725
31 December 2016 (129,030,264) (1,180,825,371) (2,322,621) (4,008,167) (1,316,186,423)
Carrying amount
31 December 2016 11,349,899,112 29,901,173,227 184,162,688 379,450,494 41,814,685,521
31 December 2015 11,730,712,241 32,065,148,587 181,137,235 353,169,558 44,330,167,621
(a) As at 31 December 2016, power generators equipment at the carrying value of RMB 816,058,138 (original cost: RMB
2,562,570,238) (31 December 2015: carrying value of RMB 971,940,400 (original cost of RMB 2,549,783,097)) were
pledged as collateral for long-term borrowings of RMB 226,400,000 (31 December 2015: long-term borrowings of
RMB 346,400,000) (see Note IV(31)(b)).
As at 31 December 2016, no plant and building (31 December 2015: carrying value of RMB 177,120,517 (original cost
of RMB 210,072,027)) were pledged as collateral for long-term borrowings (31 December 2015: long-term borrowings
of RMB 29,400,000).
(b) In 2016, the total amount of depreciation is RMB 3,939,547,160 (2015: RMB 3,641,274,405), which is charged to cost
of sales, selling and distribution expenses and administration expenses amounting to RMB 3,893,532,712, RMB 4,185
and RMB 42,638,087 respectively (2015: RMB 3,594,943,652, RMB 797 and RMB 45,273,732 respectively).
(c) In 2016, the costs of fixed assets transferred from construction in progress amount to RMB 2,367,688,811 (2015: RMB
8,529,336,509)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(12) Fixed assets(continued)
(d) Impairment of fixed assets
As at 31 December 2016, the Group’s balance of impairment provision for fixed assets are as follows:
31 December Additions for the Decreases for the 31 December
2015 year year
Guangdong Yuejia Electric Co., Ltd.
(“Yuejia Electric”) (i) 481,910,703 - (371,704) 481,538,999
Zhongyue Energy (iii) - 214,553,161 - 214,553,161
Guangdong Red Bay Power Co.,
Ltd., (“Red Bay Power”)(iii) - 184,988,419 - 184,988,419
Xuwen Wind Power(ii) 126,877,473 - - 126,877,473
Zhanjiang Electric Co., Ltd.
(“Zhanjiang Electric”) (iii) - 99,882,705 (10,601,873) 89,280,832
Guangdong Yudean Jinghai Power
Generation Co., Ltd.,(“Jinghai
Power”) (iii) - 71,082,445 - 71,082,445
Guangdong Shaoguan Yuejiang
Electric Power Co., Ltd
(“Yuejiang Power”) (iii) 10,598,065 42,400,011 (127,694) 52,870,382
Maoming Zhenneng Thermal Power
Co., Ltd (“Maoming Zhenneng”)
(iii) 657,498 48,399,955 - 49,057,453
Shajiao A Power (iv) - 45,937,259 - 45,937,259
620,043,739 707,243,955 (11,101,271) 1,316,186,423
(i) Impairment of fixed assets related to generator units of Yuejia Electric
The four generator units of Yuejia Electric have been shut down by August 2016. As at 31 December 2015, the Group
has made provisions of RMB 481,910,703 for impairment of fixed assets related to generator units of Yuejia Electric. In
2016, management continued to dispose part of production equipment and wrote off RMB 371,704 of impairment of
fixed assets. As at 31 December 2016, the Group recorded a provision of RMB 481,538,999 for the impairment of fixed
assets related to the above generator units of Yuejia Electric.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(12) Fixed assets(continued)
(d) Impairment of fixed assets(continued)
(ii) Impairment of generator units of Xuwen Wind Power
In July 2014, super typhoon Rammasun slammed the Yongshi Wind Power Plant owned by Xuwen Wind Power.
Eighteen generator units were destroyed (Cost of the generator units was RMB 138,358,965, with accumulated
depreciation of RMB 11,481,492). Management recorded provisions of RMB 126,877,473 for impairment of these units
against their full carrying amounts, as the units were completely destroyed. As at 31 December 2016, the fixed assets
were yet to be disposed of or reversed.
(iii) Impairment of ultra-low emissions, energy-saving, and catalyst of denitrification projects
As at 31 December 2016, according to Ultra-low Emissions and Energy-saving Transformation Work Program in Full
Operation [2015]164 jointly issued by Ministry of Environmental Protection, National Development and Reform
Commission and Bureau of Energy, it required fully operating ultra-low emissions and energy-saving transformation and
reducing coal consumption and pollutant discharge on completion by the end of 2017 in Guangdong province. For this
purpose, the Group made specific plans and propelled the implementation of ultra-low emissions and energy-saving
program to ensure the reconstruction project of its coal-fired units could accomplish on schedule and steadily run. Basing
on the specific circumstance of implementation of the Group’s coal-fired units on the program, some part of equipment
units needed to be dismantled or scrapped in advance. The Group recorded corresponding provision for impairment on
the basis of the expected recoverable amounts of catalyst of desulfurization and denitrification.
Among them, Zhongyue Energy recorded a provision of RMB 214,553,161 for impairment; Red Bay recorded a
provision of RMB 184,988,419 for impairment; Zhanjiang Wind recorded a provision of RMB 89,280,832 for
impairment; Jinghai Power recorded a provision of RMB 71,082,445 for impairment; Yuejiang Power recorded a
provision of RMB 42,400,011 for impairment; Maoming Zhenneng recorded a provision of RMB 48,399,955 for
impairment; and Shajiao A recorded a provision of RMB 45,937,259 for impairment.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(12) Fixed assets(continued)
(e) Fixed assets leased out under operating leases:
Cost Accumulated depreciation Net book value
31 December 2016
Power generator equipment 3,621,850,800 (1,242,103,758) 2,379,747,042
31 December 2015
Power generator equipment 3,942,130,800 (1,060,356,917) 2,881,773,883
The details of the future lease payments are disclosed in Note IV (33).
(f) Fixed assets with pending certificates of ownership
Book Value Reason for pending certificate of ownership
Plants and buildings 546,586,931 Awaiting government approval
As at 31 December 2016, 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 the normal operation of the
Group will be incurred.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(13) Construction in progress
31 December 2016 31 December 2015
Impairment Carrying Impairment Carrying
Book value provision amount Book value provision amount
Bohe Coal
integration
project 3,540,338,713 - 3,540,338,713 2,105,426,029 - 2,105,426,029
Lincang
Dayakou
Hydropower
Station 1,051,344,320 - 1,051,344,320 984,023,323 - 984,023,323
Huizhou Natural
Gas thermal
and power
cogeneration
expansion
project 267,728,615 - 267,728,615 81,865,488 - 81,865,488
Xuwen Shiban
ling wind
power project 227,143,871 - 227,143,871 34,411,228 - 34,411,228
Leizhou
Hongxinlou
wind power
project 252,688,463 - 252,688,463 49,736,645 - 49,736,645
Xuwen Qujie
wind power
project 157,109,585 - 157,109,585 58,094,492 - 58,094,492
Humen Electric
2*1000MW
project 137,373,040 (49,461,265) 87,911,775 137,354,887 (10,354,156) 127,000,731
Red Bay
No.5&6
generator units 26,360,597 - 26,360,597 34,640,172 - 34,640,172
Dianbai Reshui
wind power
plant project 118,376 - 118,376 338,264,433 - 338,264,433
Other
infrastructure
projects 320,159,193 (11,980,219) 308,178,974 284,577,236 - 284,577,236
Technology
improvement
and other
projects 425,256,937 (886,463) 424,370,474 185,999,685 (886,463) 185,113,222
Xuwen Yongshi
Rebuild
project - - - 62,959,412 - 62,959,412
Da Pu Electric
2*600MW
generator
construction - - - 1,267,286,429 - 1,267,286,429
6,405,621,710 (62,327,947) 6,343,293,763 5,624,639,459 (11,240,619) 5,613,398,840
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(13) Construction in progress(continued)
(a) Movements of major construction projects in progress during the year
Interest
rate for
capitali
Actual Including: sation
cost / Accumulate interest in
31 December Addition for Transfer to Other 31 December budget Project d capitalised capitalised 2016(% Source of
Item Budget 2015 the year fixed assets Impairment decreases 2016 (%) progress interest for the year ) funding
Bohe Coal Borrowing,
Integration 9,785,950,00 2,105,426,02 1,434,912,68 3,540,338,71 191,521,00 proprietary
project 0 9 4 - - - 3 36.18% 36.18% 1 130,905,929 5.6% funding
Humen Electric
2*1000MW 7,789,510,00 (39,107,10 Proprietary
project 0 127,000,731 18,153 - 9) - 87,911,775 1.63% 1.63% - - - funding
Red Bay No 5 &
6 generator 7,714,370,00 (11,839,682 Proprietary
units 0 34,640,172 3,560,107 - - ) 26,360,597 0.50% 0.50% - - - funding
Da Pu Electric
2*600MW Borrowing,
generator 1,436,374,62 1,267,286,42 (1,436,374,62 proprietary
construction 1 9 169,088,192 1) - - - 100.00% 100.00% 224,504,804 30,061,476 5.93% funding
Lincang Dayakou Borrowing,
Hydropower 1,209,578,40 1,051,344,32 proprietary
Station 0 984,023,323 67,320,997 - - - 0 86.92% 86.92% 34,985,021 - - funding
Huizhou Natural
Gas thermal
and power
cogeneration Borrowing,
expansion proprietary
project 900,000,000 81,865,488 185,863,127 - - - 267,728,615 29.75% 29.75% 1,627,543 1,627,543 3.44% funding
Jinghai 1-4# 558,000,000 - 40,323,340 - - - 40,323,340 7.23% 7.23% - - - Proprietary
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
generators funding
ultra-low
emission
reduction
alteration
project
Dianbai Reshui Borrowing,
wind power (369,434,348 proprietary
plant project 483,714,800 338,264,433 31,288,291 ) - - 118,376 76.40% 97.00% 9,153,190 1,996,454 4.99% funding
Xuwen Qujie Borrowing,
wind power proprietary
project 466,450,000 58,094,492 103,490,720 - - (4,475,627) 157,109,585 34.64% 34.64% 4,582,100 1,873,051 4.41% funding
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(13) Construction in progress(continued)
(a) Movements of major construction projects in progress during the year(continued)
Interest
rate for
capitali
Actual Including: sation
cost / Accumulate interest in
31 December Addition for Transfer to Other 31 December budget Project d capitalised capitalised 2016(% Source of
Item Budget 2015 the year fixed assets Impairment decreases 2016 (%) progress interest for the year ) funding
Leizhou
Hongxinlou Borrowing,
wind power proprietary
project 462,920,000 49,736,645 202,951,818 - - - 252,688,463 54.59% 54.59% 2,829,588 2,528,113 5.61% funding
Xuwen Shiban Borrowing,
Ling wind proprietary
power project 460,639,300 34,411,228 192,732,643 - - - 227,143,871 49.31% 49.31% 3,597,862 1,860,900 4.41% funding
Xuwen Yongshi
wind power (139,239,611 Proprietary
project 139,239,611 62,959,412 76,280,199 ) - - - 100.00% 100.00% - - - funding
Other
infrastructure Not (3,354,129 (18,411,491 Not Not Proprietary
projects applicable 284,577,236 62,181,060 (57,137,042) ) ) 267,855,634applicable applicable - - - funding
Technology
improvement
and other Not (365,503,189 (8,626,090 Not Not
projects applicable 185,113,222 615,253,419 ) ) (1,866,888) 424,370,474applicable applicable 1,049,928 1,049,928 4.1% Borrowing
5,613,398,84 3,185,264,75 (2,367,688,81 (51,087,32 (36,593,688 6,343,293,76
0 0 1) 8) ) 3 473,851,037 171,903,394
(i) Other decreases of construction in progress during the year mainly represented the adjustment on the project costs based on the actual costs (recorded by estimated project progress in
previous years) during the year; transfer to intangible assets; and transfer out of upfront expenses and income from test run that cannot bring economic benefits.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(13) Construction in progress(continued)
(b) Provision for impairment of construction in progress
31 December 31 December
Project 2015 Charge for the year Decrease for the year 2016 Reason for provision
Upfront expenses for construction
Humen Electric 2*1000MWproject (10,354,156) (39,107,109) - (49,461,265) in progress
Zhanjiang Electric technical improvement Upfront expenses for construction
project (886,463) - - (886,463) in progress
Shajiao A4# coal yard sea-fill yard capacity Upfront expenses for construction
increase project - (5,802,000) - (5,802,000) in progress
Province Wind Power project early stage cost Upfront expenses for construction
impairment - (2,824,090) - (2,824,090) in progress
Lincang Hydro Power project early stage cost Upfront expenses for construction
impairment - (3,354,129) - (3,354,129) in progress
(11,240,619) (51,087,328) - (62,327,947)
(c) As at 31 December 2016, some projects under construction were pending 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 projects were put into production. Therefore, the risk of impairment of such projects was low.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(14) Intangible assets
Associated
projects for
electricity
transmission Non-patent
and microwave Transportation Concession technology and
engineering Land use right Sea use right project contract Software others Total
Cost
Balance as at 31 December 2015 442,517,684 1,729,875,675 129,906,544 22,468,672 13,720,736 82,290,380 693,319 2,421,473,010
Additions during the year
- Purchase - 83,070,823 - - - 13,118,482 3,810,301 99,999,606
- Research & development - - - - - 121,368 - 121,368
- Transfer from construction in
progress - - - - - 1,737,087 - 1,737,087
Decreases during the year
Disposal - - - - - - (3,746,851) (3,746,851)
Balance as at 31 December 2016 442,517,684 1,812,946,498 129,906,544 22,468,672 13,720,736 97,267,317 756,769 2,519,584,220
Accumulated amortisation
Balance as at 31 December 2015 (404,925,877) (215,263,046) (15,245,415) (21,426,174) (8,006,421) (58,695,580) (269,450) (723,831,963)
Additions during the years
- Charge for the year (200,262) (39,274,721) (2,619,493) (20,894) (952,142) (10,905,327) (78,219) (54,051,058)
Balance as at 31 December 2016 (405,126,139) (254,537,767) (17,864,908) (21,447,068) (8,958,563) (69,600,907) (347,669) (777,883,021)
Impairment provision
Balance as at 31 December 2015 (33,189,374) - - (1,021,604) - - - (34,210,978)
Balance as at 31 December 2016 (33,189,374) - - (1,021,604) - - - (34,210,978)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
Carrying amount
Balance as at 31 December 2016 4,202,171 1,558,408,731 112,041,636 - 4,762,173 27,666,410 409,100 1,707,490,221
Balance as at 31 December 2015 4,402,433 1,514,612,629 114,661,129 20,894 5,714,315 23,594,800 423,869 1,663,430,069
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(14) Intangible assets(continued)
(a) In 2016, the amortized amount of intangible assets is RMB 54,051,058 (2015: 51,806,071).
(b) As at 31 December 2016, the Group made a full provision of RMB 34,210,978 (31 December 2015: RMB 34,210,978)
for impairment of intangible assets of the use rights of associated projects for electricity transmission and transformation,
microwave engineering, and transportation engineering.
(c) As at 31 December 2016, the Group had obtained land use right certificates for all its lands, except for the land use right
certificates under application and approval procedures for the lands with the carrying value of RMB 51,465,074(31
December 2015: RMB 38,669,775). 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 the normal operation of the
Group will be incurred.
(15) Goodwill
31 December
2016 & 2015
Goodwill
Guangdong Province Wind Power Generation Co., Ltd., (“Guangdong Wind Power”) 2,449,886
Lincang Yudean Energy Co., Ltd., (“Lincang Energy”) 25,036,894
27,486,780
(a) In 2013, the Group acquired 55% shares in Guangdong Wind Power with a combined cost of RMB 5,994,670. The
excess of the combined cost over the fair value of the Group’s share of Guangdong Wind Power’s identifiable assets and
liabilities amounted to RMB 2,449,886 and was recognized as good will.
(b) On 5 January 2015, the Group exchanged for 51.00% of the equity in Lincang Energy held by third parties with 14.34%
of equity in Weixin Yuntou. The excess of the combined cost over the fair value of the Group’s share of Lincang
Energy’s identifiable assets and liabilities amounted to RMB 25,036,894 and was recognized as goodwill.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(16) Long-term prepaid expenses
31 December Additions during Amortisation 31 December
2015 the year during the year
Long-term lease charges 23,400,125 - (2,028,166) 21,371,959
Leasehold improvement 5,443,100 - (767,959) 4,675,141
Others - 9,679,884 (1,115,272) 8,564,612
28,843,225 9,679,884 (3,911,397) 34,611,712
(17) Deferred tax assets and liabilities
(a) Deferred tax assets
31 December 2016 31 December 2015
Deferred tax assets Deferred tax assets
Deductible
Deductible temporary
temporary differences differences and
and deductible losses deductible losses
Provision for asset
impairment 778,810,681 193,720,196 107,427,844 26,374,328
Pre-operating expenses 3,089,245 386,156 6,459,331 807,416
Deductible losses 112,722,870 28,180,717 493,320 123,330
Depreciation of fixed assets 77,011,308 19,252,827 66,617,909 16,654,477
Employee benefits payable 58,555,576 14,838,523 70,926,428 17,731,607
Net income from test run
included in construction
in progress 53,276,223 13,158,344 27,816,165 6,874,116
Government grants related to
assets 63,727,865 15,931,966 47,600,568 11,900,142
Amortisation of land use
right 3,011,274 752,819 3,072,296 768,073
Intra-Group transactions 220,966,988 55,241,747 234,495,579 58,623,895
1,371,172,030 341,463,295 564,909,440 139,857,384
Including:
Expected to be recovered
within one year (inclusive) 153,444,772 8,817,135
Expected to be recovered
after one year 188,018,523 131,040,249
341,463,295 139,857,384
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(17) Deferred tax assets and liabilities(continued)
(b) Deferred tax liabilities
31 December 2016 31 December 2015
Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Changes in fair value of
available-for-sale
financial assets included
in other comprehensive
income (164,407,693) (41,101,923) (298,021,872) (74,505,468)
Net expenses in test run
included in construction
in progress (42,114,648) (10,528,662) (47,835,721) (11,958,930)
Revaluation upon acquisition (94,486,868) (23,621,718) (97,594,651) (24,398,663)
(301,009,209) (75,252,303) (443,452,244) (110,863,061)
Including:
Expected to be recovered
within one year (inclusive) (2,329,404) (3,203,287)
Expected to be recovered
after one year (72,922,899) (107,659,774)
(75,252,303) (110,863,061)
(c) Deductible temporary differences and deductible losses which are not recognised as deferred tax assets are analysed as
below:
31 December 2016 31 December 2015
Deductible losses 913,316,296 749,873,728
Deductible temporary differences 252,062,736 121,380,071
1,165,379,032 871,253,799
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(17) Deferred tax assets and liabilities(continued)
(d) Tax losses which is not recognised as deferred tax assets will expire in the following years:
Year 31 December 2016 31 December 2015
2016 - 36,164,017
2017 67,060,276 67,959,606
2018 2,504,832 2,504,832
2019 7,350,102 7,350,102
2020 7,401,514 7,401,514
2021 167,746,012 -
252,062,736 121,380,071
The management believed that as at the maturity date for the above deductible losses, the relevant subject of tax payment
does not have sufficient taxable income to deduct the above deductible losses, therefore did not realise deferred tax
assets。
(e) The net balances of deferred tax assets and liabilities are as follows:
31 December 2016 31 December 2015
Offset amount Offset amount
Balance after offset Balance after offset
Deferred tax assets (37,534,026) 303,929,269 (23,620,033) 116,237,351
Deferred tax liabilities 37,534,026 (37,718,277) 23,620,033 (87,243,028)
(18) Other non-current assets
Item 31 December 2016 31 December 2015
Prepayment for construction equipment 1,081,412,840 1,550,963,239
Prepayment for construction expenses 542,965,106 64,403,010
Unrealised losses on sale and leaseback (a) 193,703,865 212,312,445
Prepayments for house purchase 150,799,140 150,799,140
Prepayments for land use right 39,765,321 38,733,601
Others 2,878,159 -
2,011,524,431 2,017,211,435
(a) Unrealised loss on leaseback is the difference between the selling price of the generator and its carrying value, and is the
remaining balance after depreciation based on the depreciation schedule of the leaseback generator.
IV Notes to the consolidated financial statements(continued)
(19) Provision for asset impairment
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
31 December Additions for the Reversals during Write-offs during 31 December
2015 year the year the year
Provision for bad debts (6,365,291) (58,407) - - (6,423,698)
Including:
Provision for bad debts
for other receivables (6,365,291) (58,407) - - (6,423,698)
Provision for decline in
the value of
inventories (62,309,494) - 119,561 2,587,083 (59,602,850)
Provision for
impairment of fixed
assets (620,043,739) (707,243,955) - 11,101,271 (1,316,186,423)
Provision for
impairment of
construction in
progress (11,240,619) (51,087,328) - - (62,327,947)
Provision for
impairment of
intangible assets (34,210,978) - - - (34,210,978)
(734,170,121) (758,389,690) 119,561 13,688,354 (1,478,751,896)
(20) Short-term loans
31 December 2016 31 December 2015
Credit loan 5,758,860,000 6,288,060,000
(a) As at 31 December 2016, the annual interest rates of the short-term loans ranged from 3.92% ~ 5.32% (31 December
2015: 3.92% ~ 5.80%).
(b) As at 31 December 2016，balance of short-term credit loans provided by related party Yudean Finance amounted to RMB
3,710,000,000 (31 December 2015: RMB 4,315,000,000) (see Note VIII(6)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(21) Notes payable
31 December 2016 31 December 2015
Bank acceptance bills 1,088,100,837 593,971,146
Commercial acceptance bills 242,380,000 -
1,330,480,837 593,971,146
The above notes payable are all due within one year.
(a) As at 31 December 2016, the Group had RMB 655,078,278 acceptance bills fro Yudean Finance (31 December 2015:
RMB 150,000,000)
(b) The Group used acceptance bills to pay for coal or fuel procured from the Company’s joint venture, Fuel Supply.
According to the three-party agreement signed among the Group, Yudean Finance and Fuel Supply, discounting
expenses will be borne by the Group when Fuel Supply discounts the bills they receive. As at 31 December 2016, the
balance of bank acceptance bills issued by the Group and discounted by Fuel Supply with Yudean Finance amounted to
RMB 847,458,278 (31 December 2015: RMB 250,000,000) with discounting rate of 2.70% ~ 3.48% (31 December
2015: 3.87% ~ 4.08%). The acceptance bills were ranging from three to twelve months (31 December 2015: due from
three to six months). The amount of the above discounted bills payable represented the amount payable to Yudean
Finance. The Group paid a total of RMB 20,564,233 (31 December 2015: RMB 11,027,433) of discounting interest to
Yudean Finance in 2016.
(22) Accounts payable
31 December 2016 31 December 2015
Fuel payable 2,190,716,850 1,169,095,741
Materials and spare parts payable 799,093,816 438,231,110
Maintenance and administrative fees payable 89,461,265 94,009,782
Others 87,978,515 37,890,658
3,167,250,446 1,739,227,291
(a) As at 31 December 2016, accounts payable ageing more than one year of RMB 156,691,389 (31 December 2015: RMB
105,763,306) mainly were maintenance and administrative fees payable of RMB 89,461,265 (31 December 2015: RMB
94,009,782) and fuel payable of RMB 67,230,124 (31 December 2015: RMB 11,753,524).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(23) Advances from customers
31 December 2016 31 December 2015
Advances for grid payment 12,208,678 -
Advances from disposal of renewable resources 162,884 244,798
Others 84,798 -
12,456,360 244,798
(a) As at 31 December 2016, there is no large amount advances from customers ageing over one year. (31 December 2015:
nil)
(24) Employee benefits payable
31 December 2016 31 December 2015
Short-term welfare benefits(a) 125,994,004 109,947,602
Defined contribution plan(b) - (52,106)
Post-employment benefits payable(c) 18,128,124 13,582,426
144,122,128 123,477,922
(a) Short-term remunerations
31 December Additions for the Decreases for the 31 December
2015 year year
Salaries, bonuses, allowances 62,400 1,181,853,535 (1,181,864,957) 50,978
Staff welfare 4,228,970 123,910,689 (124,419,857) 3,719,802
Social insurance 38,054,334 73,113,198 (65,564,671) 45,602,861
Including: Medical insurance 38,054,334 66,861,369 (59,312,842) 45,602,861
Work-related injury
insurance - 3,446,940 (3,446,940) -
Maternity insurance - 2,804,889 (2,804,889) -
Housing fund - 194,741,638 (194,741,638) -
Labour union fee and staff and
workers’ education fee 64,847,288 53,078,575 (43,543,272) 74,382,591
Others 2,754,610 50,631,852 (51,148,690) 2,237,772
109,947,602 1,677,329,487 (1,661,283,085) 125,994,004
(b) Defined contribution plan
31 December Additions for the Decreases for the 31 December
2015 year year
Pension insurance (55,779) 161,000,625 (160,944,846) -
Unemployment insurance 3,673 4,889,047 (4,892,720) -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
Annuity - 56,525,846 (56,525,846) -
(52,106) 222,415,518 (222,363,412) -
(c) Post-employment benefits payable refers to early retirement benefits payable due by the Group within one year (see Note
IV (36)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(25) Tax Payable
31 December 2016 31 December 2015
Corporate income tax payable 128,468,570 246,968,994
Unpaid VAT payable 133,295,631 92,133,107
Individual income tax payable 33,222,950 40,151,510
Land use tax payable 9,707,984 905,014
Property tax payable 6,552,214 830,606
Pollution discharge fee payable 3,456,932 4,100,793
Embankment fee payable 2,879,847 -
City maintenance and construction tax payable 2,327,949 5,613,910
Education surcharges payable 1,954,625 4,890,004
Business tax payable - 2,083,421
Other tax payables 5,053,142 7,051,995
326,919,844 404,729,354
(26) Interests payable
31 December 2016 31 December 2015
Interests payable for long-term borrowings with
interest paid in installments and principal repaid
on maturity 27,938,770 43,836,517
Interests payable for debentures 44,398,814 44,398,814
Interests payable for short-term loans 10,807,042 17,257,367
Other interests payables 504,167 -
83,648,793 105,492,698
(27) Dividend payable
31 December 2016 31 December 2015
Payable to non-tradable owners of the Company 9,703,930 8,640,994
The above dividend payable refers to dividend payable for non-tradable shares reform that is in the process of
completing necessary formalities. The payment will be arranged after the formalities are completed.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(28) Other payables
31 December 2016 31 December 2015
Payment for construction and equipment 2,587,231,394 3,118,101,571
Payment for project warranty 369,890,625 261,377,223
State Oceanic Administration penalty payable
(IV(50)(a)) 172,000,000 -
Payables to advances from Shaoguan Plant D 19,936,021 9,937,230
Payable for purchase of unit capacity 4,000,000 4,448,301
Others 139,498,955 142,269,300
3,292,556,995 3,536,133,625
As at 31 December 2016, other payables of RMB 1,076,042,535 (31 December 2015: RMB 1,153,892,553) aged over
one year mainly represent construction payables and warranty. They have not been settled because the related projects
have not completed their final inspection or are still within their warranty periods.
(29) Current portion of non-current liabilities
31 December 2016 31 December 2015
Long-term borrowings due within one year (Note
IV(31)) 990,474,807 1,471,898,209
Long-term payables due within one year (Note IV(33)) 443,169,716 379,072,443
1,433,644,523 1,850,970,652
(a) Long-term borrowings due within one year
Item 31 December 2016 31 December 2015
Pledged loan (i) 184,196,290 70,645,920
Loan secured by mortgages - 9,800,000
Guaranteed loan (ii) 58,427,500 56,525,000
Credit loan 747,851,017 1,334,927,289
990,474,807 1,471,898,209
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(29) Current portion of non-current liabilities(continued)
(a) Long-term borrowings due within one year(continued)
(i) As at 31 December 2016, the charge right for electricity and accounts receivable are treated as pledge for long-term
borrowings due within one year for the following subsidiaries：
31 December 2016 31 December 2015
Yuejiang Power 105,353,210 38,840,000
Zhanjiang Wind Power 17,520,000 17,520,000
Xuwen Wind Power 61,323,080 14,285,920
184,196,290 70,645,920
(ii) As at 31 December 2016, Zhanjiang Wind Power provides maximum amount guarantee for Xuwen Wind’s long-term
loan of RMB 10,427,500 (31 December 2015: RMB 8,525,000) due within one year. The Company provides joint and
several guarantee for Yuejiang Power’s long-term loan of RMB 48,000,000 (31 December 2015: 48,000,000) due within
one year.
(iii) As at 31 December 2016, the annual interest rate of long-term borrowings due within one year ranges from 1.29% to
5.31% (31 December 2015: from 0.92% to 6.15%). The loans will be due within 12 months.
(b) Long-term payables due within one year
As at 31 December 2016, the long-term payables due within one year are financing lease payable of RMB 443,169,716
(i.e. the net balance of RMB 557,802,821 less unrecognized finance cost of RMB 114,633,105). As at 31 December
2015, the long-term payables due within one year is financing lease payable of RMB 379,072,443 (i.e. the net balance
of RMB 464,277,338 less unrecognized finance cost of RMB 85,204,895).
As at 31 December 2016, details of long-term payables due within one year has been detailed in Notes IV(33).
(30) Other current liabilities
31 December 2016 31 December 2015
Short-term financing notes payable 1,723,070,000 1,711,348,630
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(30) Other current liabilities(continued)
(a) Changes in short-term debentures payable
Issuance Amortisation
Issuance Maturity Issuance 31 December during the Interests at of discounts Repayments for 31 December
Face value date period amounts 2015 year face value or premium the period
First batch of short-term
financing notes issued by
Guangdong Electric Power
Development Co., Ltd., 2015 1,500,000,000 20/10/2015 270 days 1,500,000,000 1,509,599,589 - 26,806,148 - (1,536,405,737) -
Short-term financing notes
issued by Guangdong Huizhou
Pinghai Power Plant in 2015 200,000,000 09/10/2015 365 days 200,000,000 201,749,041 - 5,850,959 - (207,600,000) -
First batch of short-term
financing notes issued by
Guangdong Electric Power
Development Co., Ltd., 2016 700,000,000 07/06/2016 270 days 700,000,000 - 700,000,000 11,565,644 - - 711,565,644
Second batch of short-term
financing notes issued by
Guangdong Electric Power
Development Co., Ltd., 2016 500,000,000 11/08/2016 270 days 500,000,000 - 500,000,000 5,017,370 - - 505,017,370
First batch of short-term
financing notes issued by
Guangdong Huizhou Pinghai
Power Plant in 2016 500,000,000 20/07/2016 270 days 500,000,000 - 500,000,000 6,486,986 - - 506,486,986
3,400,000,000 3,400,000,000 1,711,348,630 1,700,000,000 55,727,107 - (1,744,005,737) 1,723,070,000
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
(All amounts in RMB Yuan unless otherwise stated)
IV Notes to the consolidated financial statements(continued)
(31) Long-term borrowings
31 December 2016 31 December 2015
Pledge loan(a) 2,537,296,396 2,526,301,960
Loan secured by mortgages(b) 226,400,000 375,800,000
Guaranteed loan(c) 1,716,667,500 1,747,875,000
Credit loan 16,398,282,948 18,125,151,159
20,878,646,844 22,775,128,119
Less: Long-term borrowings due within one year
(Note IV(29)(a)) (990,474,807) (1,471,898,209)
19,888,172,037 21,303,229,910
(a) As at 31 December 2016，The long-term borrowings of the following subsidiaries are secured by the future revenue
from power generation and accounts receivable：
31 December 2016 31 December 2015
Yuejiang Power (i) 2,223,720,000 2,149,080,000
Zhanjiang Wind Power (ii) 173,985,000 191,505,000
Xuwen Wind Power (iii) 139,591,396 185,716,960
2,537,296,396 2,526,301,960
(i) As at 31 December 2016, the Company’s subsidiary Yuejiang Power borrows RMB 2,223,720,000 from bank
consortium and the Industrial and Commercial Bank of China, secured by Yuejiang Power’s right to charge electricity.
The maturity date is on 21 June 2020 along with the annual interest rate from 4.41% to 4.85%. Included in the loans is a
long-term loan due within one year amounting to RMB 105,353,210 (2015: included in the loans of RMB 2,149,080,000
was a long-term loan due within one year amounting to RMB 38,840,000).
(ii) As at 31 December 2016, the Company’s subsidiary Zhanjiang Wind Power borrows RMB 173,985,000 from the
Industrial and Commercial Bank of China, secured by Zhanjiang Wind Power’s right to charge electricity. The maturity
date is on 7 May 2024 along with the annual interest rate of 4.41% (2015: 5.90%). Included in the loans is a long-term
loan due within one year amounting to RMB 17,520,000 (2015: inclu
