Guangdong Electric Power Development Co. Ltd.
2018 Annual Report
April 2019
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.Wang Jin The Company leader Mr. Liu Wei 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.Other directors attending the Meeting for annual report deliberation except for the followed:
Name of director absent Title for absent director Reasons for absent Attorney
Rao Subo Director Due to business Wen Lianhe
Chen Ze Director Due to business Wang Jin
Li Fangji Director Due to business Zheng Yunpeng
Zhang Xueqiu Director Due to business Ma Xiaoqian
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. Investors and stakeholders should all maintain sufficient
awareness of risks for this and understand the differences between plans forecasts and commitments.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
5250283986 for Base on the Company‘s total share capitalthe Company would distribute cash dividend to allthe shareholders at the rate of CNY 0.60 for every 10shares (with tax inclusive)with 0 bonus shares（includingtax） and not converting capital reserve into share capital.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
Definition
Terms to be defined Refers to Definition
Guangdong Energy Group (Yudean Group) Refers to
Guangdong Energy Group Co. Ltd. (Guangdong Yudean Group Co.Ltd. Renamed on Feb 182019)
Guangqian Company Refers to Shenzhen Guangqian Electric Power Co. Ltd.
Bohe Company Refers to Guangdong Yudean Bohe Coal & Electricity Co. Ltd
Dapu Company Refers to Guangdong Dapu Power Generation Co. Ltd.
Wind Power Company Refers to Guangdong Wind Power Co. Ltd.Lincang Company Refers to Lincang Yudean Energy Co. Ltd.Qujie Wind Power Company Refers to Guangdong Yudean Qujie Wind Power Generation Co. Ltd.
Electric Power Sales Company Refers to Guangdong Yudean Electric Power Sales Co. Ltd.
Anxin Electric Inspection & Installation
Company
Refers to Guangdong Yudean Anxin Electric Inspection & Installation Co. Ltd
Tongdao Wind Power Company Refers to Tongdao Yuexin Wind Power Generation Co. Ltd.Zhongyue Compamy Refers to Zhanjiang Zhongyue Energy Co. Ltd.Yuejiang Company Refers to Guangdong Shaoguan Yuejiang Power Generation Co. Ltd.Yongan Natural Gas Company Refers to Guangdong Yudean Yongan Natural Gas Thermal Power Co. Ltd.Leizhou Wind Power Company Refers to Guangdong Yudean Leizhou Wind Power Generation Co. Ltd.Zhanjiang Company Refers to Zhanjiang Electric Power Co. Ltd.Zhanjiang Wind Power Company Refers to Guangdong Yudean Zhanjiang Wind Power Co. Ltd.Huizhou Natural Gas Company Refers to Guangdong Huizhou Natural Gas Power Co. Ltd.Zhenneng Company Refers to Maoming Zhenneng Thermal Power Co. Ltd.Jinghai Company Refers to Guangdong Yudean Jinghai Power Co. Ltd.Red Bay Company Refers to Guangdong Red Bay Power Co. Ltd.Huadu Natural Gas Company Refers to Guangdong Huadu Natural GasT Thermal Power Co. Ltd.Humen Power Company Refers to Guangdong Yudean Humen Power Co. Ltd.Yuejia Company Refers to Guangdong Yuejia Electric Power Co. Ltd.Pinghai Power Plant Refers to Guangdong Hluizhou Pinghai Power Co. Ltd.Pingdian Integrated Energy Company Refers to Huizhou Pingdian Integrated Energy Co. Ltd.Zhencheng Integrated Energy Company Refers to Guangdong Yudean Zhencheng Integrated Energy Co. Ltd.
Dianbai Wind Power Company Refers to Guangdong Yudean Dianbai Wind Power Co. Ltd.
Yangjiang Wind Power Company Refers to Guangdong Yudean Yangjiang Offshore Wind Power Co. Ltd.Heping Wind Power Company Refers to Guangdong Yudean Heping Wind Power Co. Ltd.Pingyuan Wind Power Company Refers to Guangdong Yudean Pingyuan Wind Power Co. Ltd.Zhuhai Wind Power Company Refers to Guangdong Yudean Zhuhai Offshore Wind Power Co. Ltd.Wuxuan Wind Power Company Refers to Guangxi Wuxuan Yudean New Energy Co. Ltd.Xupu Wind Power Company Refers to Hunan Xupu Yuefeng New Energy Co. Ltd.Shibeishan Wind Power Refers to Guangdong Yudean Shibeishan Wind Energy Development Co. Ltd.Huilai Wind Power Company Refers to Huilai Wind Power Generation Co. Ltd.Yudean Industry Fuel Company Refers to Guangdong Power Industry Fuel Co. Ltd.Insurance Captive Company Refers to Guangdong Yudean Property Insurance Captive Co. Ltd.Shanxi Energy Company Refers to Shanxi Yudean Energy Co. Ltd.Yudean Shipping Company Refers to Guangdong Yudean Shipping Co. Ltd.Yudean Western Investment Company Refers to Guangdong Yudeann Holdings Western Investment Co. Ltd.Yudean Finance Company Refers to Guangdong Yudean Finance Co. Ltd.Guohua Taishan Company Refers to Guangdong Guohua Yudean Taishan Power Generation Co. Ltd.Weixin Energy Co. Ltd. Refers to Yunnan Yuntou Weixin Energy Co. Ltd.Zhongxinkeng hydropower station Refers to Yangshan zHONGXINKENG Power Co. Ltd.Jiangkeng hydropower station Refers to Yangshan Jiangkeng hydropower station
Southern Offshore wind power Refers to Southern Offshore wind power Union Development Co. Ltd.Sunshine Insurance Refers to Sunshine Insurance Group Co. Ltd.Shenzhen Capital Refers to Shenzhen Capital Group Co. Ltd.GMG Refers to GMG International Tendering Co. Ltd.Shenzhen Energy Refers to Shenzhen Energy Group Co. Ltd.Shenergy Company Refers to Shenergy Company Limited
II. Basic Information of the Company
1.Company information
Stock abbreviation Yue Dian Li A Yue Dian Li B Stock code： 000539、200539Stock 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 any)粤电力
English name (If any) GUANGDONG ELECTRIC POWER DEVELOPMENT CO.LTD
English abbreviation (If any) GED
Legal Representative Wang Jin
Registered address 33-36/F South Tower Yudean Plaza No.2 Tianhe Road East GuangzhouGuangdong Province
Postal code of the Registered
Address
510630
Office Address 33-36/F South Tower Yudean Plaza No.2 Tianhe Road East GuangzhouGuangdong Province
Postal code of the office address 510630
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
Contact address
35/F South Tower Yudean Plaza No.2 Tianhe
Road East GuangzhouGuangdong Province
36/F South Tower Yudean Plaza No.2 Tianhe Road
East GuangzhouGuangdong 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
disclosure
China Securities Daily Securities Times and Hong Kong Commercial
Daily(overseas newspaper for English version)
Internet website designated by CSRC for publishing
the Annual report of the Company
http://www.cninfo.com.cn
The place where the Annual report is prepared and
placed
Affair Dept. Of the Board of directors of the Company
Ⅳ.Changes in Registration
Organization Code 91440000617419493W
Changes in principal business activities since listing (if any) No change
Changes is the controlling shareholder in the past (is any) No change
Ⅴ. Other Relevant Information
CPAs engaged
Name of the CPAs PWC Certified Public Accountants (special general partnership)
Office address
11/FPricewaterhouseCoopers Center2 Corporate Avenue 202 Hu Bin Road Huangpu
DistrictShanghai
Names of the Certified Public
Accountants as the signatories
Wang Bin Guo Biyu
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
Whether it has retroactive adjustment or re-statement on previous accounting data or not
√Yes □ No
The reason for retrospective restatement
Change of accounting policy
2018
2017
Changed over
last year（％）
2016
Before
adjustment
After
adjustment
After
adjustment
Before
adjustment
After
adjustment
Revenue（RMB） 27408514178 26643792057 26643792057 2.87% 22681120022 22681120022
Net profit attributable to the
shareholders of the listed
Company（RMB）
474461997 743180431 743180431 -36.16% 936534941 936534941
Net profit attributable to
shareholders of the listed
Company after deducting
non-recurring gains and
losses(RMB)
412062957 718454119 718454119 -42.65% 1074697758 1074697758
Net cash flow arising from
operating activities（RMB）
5999936356 3676034503 3676034503 63.22% 8704775818 8704775818
Basic earning per
share(RMB/Share)
0.09 0.14 0.14 -35.71% 0.18 0.18
Diluted gains per
share(RMB/Share)
0.09 0.14 0.14 -35.71% 0.18 0.18
Net asset earning ratio（%） 2.02% 3.16% 3.16% -1.14% 3.99% 3.99%
End of 2018
End of
2017
Changed over
last year（％）
End of 2016
Before
adjustment
After
adjustment
After
adjustment
Before
adjustment
After
adjustment
Gross assets（RMB） 73329662306 71007415323 71007415323 3.27% 70677003760 70677003760
Net assets attributable to
shareholders of the listed
Company（RMB）
24227302288 23695190653 23695190653 2.25% 23378847225 23378847225
Reasons for Changes in Accounting Policies and Correction of Accounting Errors
Changes in Presentation Methods of Financial Statements
According to the requirements of the Notice on Revising and Issuing the Format of General Enterprise Financial
Statements for 2018 (Caikuai [2018] No. 15) the balance sheet will merge "notes receivable" and "accounts
receivable" into newly added "notes receivable and accounts receivable" merge "interest receivable" and
"dividend receivable" into "other receivables" merge "fixed assets liquidation" into "fixed assets" and merge
"engineering materials" into "construction in progress" merge "bills payable" and "accounts payable" into the
newly added "bills payable and accounts payable" and merge "special accounts payable" into the "long-term
payables"; In the income statement an additional item entitled "research and development expenses" is added to
report expenditures incurred in the process of research and development and detailed items entitled "interest
expenses" and "interest income" are split under the item entitled "financial expenses"; The Company has
conducted a corresponding retrospective application on the comparison data. The change of accounting policy has
no effect on the merger net profit of the company and shareholders' equity.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
listed company
Net Assets attributable to the shareholders of
the listed company
Amount in the
reporting period
Amount in the previous
period
End of the reporting
period
Beginning of the
reporting period
According to CAS 474461997 743180431 24227302288 23695190653
Items and amount adjusted according to IAS
The difference arising from
recognition of goodwill after
merger of enterprises under
the same control
64623000 64623000
Difference arising from
recognition of land use value
after enterprise merger
-630000 -630000 17600000 18230000
Influence on minority interests 54120 54120 4810219 4756099
According to IAS 473886117 742604551 24314335507 23782799752
. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
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
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.Ⅷ.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 5812535688 8082449491 7060929815 6452599184
Net profit attributable to the
shareholders of the listed company
5745879 443087639 489988070 -464359591
Net profit after deducting of
non-recurring gain/loss attributable to
the shareholders of listed company
4330364 408811354 471207833 -472286594
Net Cash flow generated by business
operation
1540043756 2255488952 1419777849 784625799
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
Items
Amount
(2018)
Amount
(2017)
Amount
(2016)
Notes
Non-current asset disposal 1572097 -4720404 -3723321
gain/loss(including the write-off part for
which assets impairment provision is made)
Govemment subsidy recognized in current
gain and loss(excluding those closely related
to the Company’s business and granted
under the state’s policies)
43530965 41344595 19074097
In this period the electricity sales
company received RMB 10.77 million
from Nansha headquarters; The
specific grant or appropriation for
energy saving and emission reduction
is RMB 8.28 million.
Enterprise reorganization expenses such as
payment to stuff placement and
consolidation expenses
-59541635
According to tax accounting and other laws
regulations the requirements of the current
Gain/loss for a one-time adjustment of the
impact of the current Gain/loss;
-12679505 -125842425
Net amount of non-operating income and
expense except the aforesaid items
62976212 6502013 -104916156
In this period Zhanjiang Wind power
received insurance compensation of
RMB 45.4585 million due to typhoon
damage in previous years; Some
power plants received donations from
multiple companies increasing
non-operating income by RMB
36.987 million; Some power plants
lost RMB 21.4579 million in
long-term asset retirement; And
Pinghai was fined RMB 11.5372
million for illegally occupying sea
areas to build sand dike.Other non-recurring Gains/loss items -7274913
Less: .Amount of influence of income tax 25191469 10104459 18950258
Less: Amount of influence of minority
interests
7809260 1020520 -155736881
Total 62399040 24726312 -138162817 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
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.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
The Company mainly engages in the investment construction and operation management of power projects and the
production and sales of electric power. It belongs to the power heat production and supply industry classified in the
“Guidelines for the Industry Classification of Listed Companies” by the China Securities Regulatory Commission.Since its foundation the Company has always adhered to the business tenet of “Capital from the people using it forelectricity and benefiting the public” and adheres to the business policy of “Centering on the main business ofelectricity with diversified development” focusing on the main business of power and making the power structure
go diversified. In addition to the development construction and operation of large-scale coal-fired power plants it
also has clean energy projects such as LNG power generation wind power generation and hydropower generation
which provides reliable and clean energy to users through the grid company. As of December 312018 the
controllable installed capacity is 20.95 million KW where the controllable installed capacity of coal-burning
power generation LNG generation and renewable energy generation like wind power and hydropower is 17.14
million KW 3.26 million KW and 550000 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 70.984 billion KWH(tax
included the same below )an increase of 4.4% YOY; average price stated in the consolidated statements is
441.99 Yuan/ thousands kwh YoY drop of 9.83 Yuan/ thousands kwh ; the total operating income was RMB
27408.5142 million an increase of RMB 764.7221 million or an increase of 2.87% YOY.
The company's business is dominated by coal-fired power generation and the fuel costs account for a large portion
of operating costs thus the fluctuations in coal prices have a significant impact on the company's operating
performance. During the reporting period affected by the increase in power generation and the continuous increase
in coal prices the company’s fuel costs were 17938.5050 million yuan which accounted for 73.98% of the
business costs; and the unit price of standard coal was 920.9614 million yuan an increase of 920.9614 milion yuan
or an increase of 0.92% over the same period of last year.
During the reporting period although the Company's electricity sales increased overall the widening of market-based
trading spreads led to the continuous decline in the average price of the Company's combined power sales and there
was high coal price which had a significant negative impact on the Company's power generation business profits.Meanwhile affected by the impairment of some power generation assets the Company achieved a net profit of
462000 yuan attributable to the parent company for the whole year a YOY decrease of 36.16%.
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
Other non-current assets
The other non-current assets increased by 169.43% YOY which was mainly due to the
increase in prepayments for equipment and construction of infrastructure projects.
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. The largest listed company of power in Guangdong
The Company's main power generation assets are located in Guangdong Province with a total asset size of more
than 70 billion. It is the largest listed company of power in Guangdong Province. By the end of 2018 the Company
had put into operation a controllable installed capacity of 20.95 million kilowatts of which the controllable installed
capacity within the province accounted for 17.32% of the installed capacity; the annual sales of electricity was
70.984 billion KWH of which the electricity sales amount of provincial units accounted for 17.5% of the market
share of electricity purchase within the province and that was basically equivalent to the installed scale of the
Company within the province.
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.
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.
4. Stepwise optimization of industrial structure and power source structure
The 13th Five-Year Plan of the Company specified the overall strategy of taking power generation as the core
business optimizing the development of coal-fired power steadily developing gas power vigorously developing
clean energy such as wind power and hydropower continuously optimizing the power supply structure and heading
to an efficient clean and low-carbon road.
In 2018 the Company continued to optimize and adjust the power supply structure to further increase the proportion
of clean energy such as wind power and natural gas power generation. The #4 and #5 machine of the phase II of the
Huizhou natural gas power generation project- which was share-controlled by the Company for construction
totaled 920000 kilowatts were put into commercial operation during the year (the #6 machine was put into
operation in January 2019) the 50000 kilowatts of Xuwen Qujie wind power project was overall put into operation
and the total of 22 sets of wind turbines of Xuwen Shiban Wind Power Project totaled 44000 kilowatts were put
into commercial operation. Thus the total installed capacity of clean energy newly increased in the year was 1.0135
million kilowatts and the proportion of clean energy increased from 14% (data at the end of 2017) to 18%.
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. The Company continuously improved the quality and
efficiency of its operations by strengthening its management of safety production energy conservation and emission
reduction marketing and so on.
6. Hold fast to the opportunity of “electric price reform” To realize the transformation from a power generation
enterprise to an energy comprehensive service enterprise.In order to adapt to the power market reform the Company established Guangdong Yuedian Power Sales Co. Ltd
in July 2015 to participate in the market competition in the electricity sales side. Guangdong Yuedian Power Sales
Co. Ltd which belongs to the first group of power-selling companies that obtained the market access is numbered
“SD01”. Since its establishment in 2015 after undergoing the market competition Yuedian electricity selling has
become a well-known brand in the Guangdong electric power market forming a leading position. In recent years in
the annual long-term contracted electricity and monthly concentrated bidding the winning bidding electricity
quantity and winning bidding rate steadily topped in the market. In the future the Company will continue to
vigorously promote the business of sales of electricity take active measures in accordance with the relevant policies
of the national power system reform expand the distribution business of electricity and the integrated energy
services so as to realize the transformation from a power generation enterprise to an energy comprehensive service
enterprise.
7. Actively participate in the energy layout of the Greater Bay Area of Guangdong Hong Kong and Macao in
combination with the development plan of the Greater Bay Area of Guangdong Hong Kong and Macau
The Company's subordinate company Shajiao A Power Plant is located in the center area of Greater Bay Area of
Guangdong Hong Kong and Macao. It is in the window position of Guangzhou-Shenzhen-Hong Kong Innovation
Economics belt and it has a unique geographical advantage. The Company will give full play to the comprehensive
advantages of regional layout industrial layout talent and technology and so on and actively participate in the
development of energy supply and related industries in the Greater Bay Area make full use of the opportunity of
retiring and rebuilding the Shajiao A power plant and create a super energy supply base with co-supply of gas
electricity heat and cooling; speed up the provincial cooperation and accelerates the development of Shajiao Power
Plant land and vigorously explore the construction headquarters for the smart energy network and the high-end
power technology integrated service in the Greater Bay Area.IV. Management’s Discussion and Analysis
Ⅰ.General
In 2018 the total electricity consumption of Guangdong Province was 632.34 billion kWh a YOY increase of 6.1%
and the growth rate was basically the same as last year (6.2%). The annual output of West-area Power to guangdong
reached 192.2 billion kWh-over-delivering 21.7 billion kWh an increase of 8.5%. Affected by factors such as
power supply from West Area Power both increase in west and provincial power generation new nuclear power
thermal power generation and restricted coal-power generation in the Pearl River Delta the power generation of
coal-fired units of the Company had been severely squeezed. The Company's coal-fired power generation accounted
for 15.4% of market share of the province's electricity purchase a decrease of 0.2 percentage YOY. The Company's
comprehensive utilization hours for the year were 4036 hours increased by 143 hours YOY and for the coal power
generation machine it was 4255 hours increased by186 hours YOY.
In 2018 the total transaction volume of Guangdong's market-oriented transactions was 170.58 billion kWh of
which the transaction in the primary market (annual bilateral negotiations annual concentrated competition and
monthly concentrated competition) totaled 157.21 billion kWh a YOY increase of 35.9% and the average
transaction price difference was -6.55 Cent/kWh; the total transaction in the secondary market (transfer of power
generation contract) was 13.37 billion kWh with an average transaction price of 34.19 Cent/kWh. The Company's
market transaction power totaled 35.38 billion kWh accounting for 49.84% of the Company's on-grid electricity a
YOY increase of 9.42 billion kWh.
In 2018 affected by the expanding of market-based transaction price spread the average price of electricity sold by
the Company in the consolidated statements was 441.99 yuan / thousand kWh (including tax similarly hereinafter)
a YOY decrease of 9.83 yuan/thousand kWh; meanwhile the coal price remained high which brought a large
negative impact on the profit of the Company's power generation business. In the face of severe business situation
the Company actively competed for power sales by continuously optimizing the power marketing system
tightening the core operating factors and improving the benchmarking management system thereby offsetting the
unfavorable factors such as the rising coal price and the interest concession to market electricity trading. Under the
continuous pressure of the main business the Company continued to strengthen its financial management and
control awareness flexibly use financial management tools improve the level of fund management safeguard the
company's capital needs and reduce the cost of capital use. During the reporting period the Company successfully
issued four ultra-short-term and one middle-term period bills which saved 19.24 million yuan compared with the
benchmark interest rate for the same period.
As of the end of 2018 the total assets of the Company by consolidated statements amounted to RMB 73.33 billion
an increase of 3.27% YOY; and the interests attributable to shareholders of the parent company was RMB 24.227
billion an increase of 12.25% YOY. The company achieved the operating income by consolidated statements of
RMB 27.409 billion an increase of 2.87% YOY; the net profit attributable to shareholders of the parent company
was RMB 474 million a YOY decrease of 36.16%; the earnings per share was RMB 0.09 (it’s RMB 0.14 in the
same period of last year). The company's liabilities by consolidated statements totaled to RMB 41.812 billion
with that the asset-liability ratio was 57.02%.In 2018 the Company continued to optimize and adjust the power supply structure to further increase the proportion
of clean energy such as wind power and natural gas power generation. The #4 and #5 machine of the phase II of the
Huizhou natural gas power generation project- which was share-controlled by the Company for construction
totaled 920000 kilowatts were put into commercial operation during the year (the #6 machine was put into
operation in January 2019) the 50000 kilowatts of Xuwen Qujie wind power project was overall put into operation
and the total of 22 sets of wind turbines of Xuwen Shiban Wind Power Project totaled 44000 kilowatts were put
into commercial operation. Thus the total installed capacity of clean energy newly increased in the year was 1.0135
million kilowatts and the proportion of clean energy increased from 14% (data at the end of 2017) to 18%.
In 2018 the Company continued to optimize and adjust the power supply structure to further increase the proportion
of clean energy such as wind power and natural gas power generation.The #4 and #5 machine of the phase II of the Huizhou natural gas power generation project-which was
share-controlled by the Company for construction totaled 920000 kilowatts were put into commercial operation
during the year (the #6 machine was put into operation in January 2019) the 50000 kilowatts of Xuwen Qujie wind
power project was overall put into operation and the total of 22 sets of wind turbines of Xuwen Shiban Wind Power
Project totaled 44000 kilowatts were put into commercial operation. Thus the total installed capacity of clean
energy newly increased in the year was 1.0135 million kilowatts. As of the end of 2018 the Company's
controllable installed capacity was 20.95 million kilowatts of which the gas-electricity of controllable installed
capacity was 3.26 million kilowatts the controllable installed capacity of renewable energy power including the
wind power and hydropower was 550000 kilowatts and the clean energy proportion increased to 18% from 14%
at the end of 2017 with the net profit attributable to the parent company was 396.3 million yuan-accounting for
83.53% to the Company's net profit attributable to the parent company.
In 2018 the Company continued to implement the Guangdong Provincial Government's spirit of deployment and
instruction to vigorously develop offshore wind power and promote industrial transformation and upgrading and
accelerate the development of offshore wind power projects. The offshore wind power projects including the
Zhuhai Jinwan Zhanjiang Wailuo Phase II project Zhanjiang Xinliao Yangjiang Qingzhou Phase I Project and
Yangjiang Qingzhou Phase II and Guangxi Wuxuan Onshore Wind Power Project were approved during the
reporting period with a total installed capacity of 1.757 million kilowatts. Meanwhile the company actively
responded to the requirements of the new development concept for environmental protection and fulfilling social
responsibilities and actively participated in the construction of ecological civilization. It completely achieved the
ultra-low emission transformation of the conventional coal-fired units orderly promoted the zero-emission project
of thermal power plant wastewater and the denitrification transformation of Guangqian and Huizhou natural gas
generator sets promoting the power generation enterprises to continuously go for clean low-carbon safe and
efficient transformation.
In 2018 the board of directors organized 5 on-site meetings and 2 communication meetings which completed the
approval of 55 board resolutions. The topics involved periodic reports internal control evaluation comprehensive
risk management profit distribution plan major investment and financing major related transactions and
important personnel appointment and dismissal matters and all the proposals were passed and effectively
implemented. The board of directors also convened five general shareholders’ meetings and all 19 proposals
submitted to the shareholders' meetings for consideration were passed and effectively implemented. The Company
successfully completed the preparation and disclosure of periodic reports and temporary announcements. A total
of 104 announcements were disclosed throughout the year and the information disclosure was “A” graded by the
Shenzhen Stock Exchange for five consecutive years.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
2018 2017
Increase /decrease
Amount Proportion Amount Proportion
Total operating
revenue
27408514178 100% 26643792057 100% 2.87%
On Industry
Electric power
Steam sales and
labor income
27125955662 98.97% 26393153579 99.06% -0.09%
Other 282558516 1.03% 250638478 0.94% 0.09%
On products
Sales Electric Power 26949774763 98.33% 26250079293 98.52% -0.19%
Labor income 50148277 0.18% 49166707 0.18% 0 %
Steam income 126032622 0.46% 93907579 0.35% 0.11%
Comprehensive
utilization of fly ash
240230510 0.88% 203698123 0.76% 0.11%
Sales material
income
1324637 0 % 3228908 0.01% -0.01%
Lease revenue 20343421 0.07% 14691747 0.06% 0.01%
Other 20659948 0.08% 29019700 0.12% -0.04%
Area
Guangdong 27333587477 99.73% 26600595122 99.84% -0.11%
Yunnan 74926701 0.27% 43196935 0.16% 0.11%
(2)Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
Turnover Operation cost
Gross profit
rate(%)
Increase/decrease
of revenue in the
same period of
the previous
year(%)
Increase/decrease
of business cost
over the same
period of
previous year (%)
Increase/decrease
of gross profit
rate over the same
period of the
previous year (%)
On Indudstry
Electric power
Steam sales and
labor income
27125955662 24236414355 10.65% 2.78% 4.12% -1.15%
On Products
Electric power
Steam sales and
labor income
27125955662 24236414355 10.65% 2.78% 4.12% -1.15%
Area
Guangdong 27333587477 24187650936 11.51% 2.76% 3.97% -1.03%
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 2018 2017 Changes
Electric power
thermal production
and supply
Sales volume Billion kwh 709.84 679.76 4.43%
Production Billion kwh 751.23 720.29 4.30%
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
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In the reporting period China Southern Power Grid was our No.1 client Its sales of 26.95 billion yuan taking up
approximately 98.01% 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.
(5)Component of business cost
Industry classification
In RMB
Industry Items
2018 2017
Increase/Decrease
Amount Proportion in the Amount Proportion in the
operating costs
(%)
operating costs
(%)
Electric power
thermal production
and supply
Fuel cost 17938504997 73.98% 17017543636 73.06% 0.92%
Electric power
thermal production
and supply
Depreciation
expense
3336322747 13.76% 3465797703 14.88% -1.12%
Electric power
thermal production
and supply
Labor cost 1386084497 5.72% 1377719311 5.91% -0.19%
Electric power
thermal production
and supply
Other 1585804339 6.54% 1431228019 6.14% 0.40%
Note
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 73.98% of total cost.which was mainly affected by the increase in power generation volume and the continuous increase in coal price
so that the fuel costs continue to grow YOY.
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes □No
New Subsidiary Establishment of the Year
Name Business place Registered address Nature
Registered
capital
Proportion
(%)
Acquired
Guangdong Yudean
Zhuhai Offshore Wind
Power Co. Ltd.Zhuhai
Guangdong
Jinwan District
Zhuhai Guangdong
Electric
Power
65000000 100.00% Invested
Guangdong Yudean
Zhencheng Integrated
Energy Co. Ltd.
Maoming
Guangdong
Maonan District
Maoming Guangdong
Electric
Power
20000000 37.23% Invested
(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
Total sales amount to top 5 customers (RMB) 27294303638
Proportion of sales to top 5 curstomers in the annual sales(%) 99.26%
Proportion of the sales volume to the top five customers in the
total sales to the related parties in the year
0.80%
Information of the Company’s top 5 customers
No Name Amount（RMB） Proportion
GPGC 26949774763 98.01%
2 Guangdong Energy Group Co. Ltd. 220137409 0.80%
3 Huizhou Huiling Chemical Co. Ltd. 57704850 0.21%
4 Sinopec Maoming Petrochemical Company 42871874 0.16%
5 Dongguan Dejin Energy Technology Co. Ltd. 23814742 0.09%
Total -- 27294303638 99.26%
Other explanation :
√Applicable □Not applicable
Guangdong Energy Group Co. Ltd. is the controlling shareholder of the Company which is a connected
relationship with the Company.Principal suppliers
Total purchase of top 5 Suppliers（RMB） 18520612475
Percentage of total purchase of top 5 suppliers In total annual purchase(%) 87.57%
Proportion of purchase amount from the top 5 suppliers in the total purchase
amount from the related parties in the year
71.52%
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
1 Guangdong Energy Group Co. Ltd. 15125772383 71.52%
2
Guangdong Zhuhai Investment Elelctric
Power Industry Fuel Co. Ltd.
1630203603 7.71%
3 Guangdong Dapeng ING Co. Ltd 948487179 4.48%
4 Dongfang Electric Co. Ltd. 574571928 2.72%
5 GPEC 241577382 1.14%
Total -- 18520612475 87.57%
Other explanation :
√ Applicable □Not applicable
Guangdong Energy Group Co. Ltd. is the controlling shareholder of the Company which is a connected
relationship with the Company.
3.Expenses
In RMB
2018 2017
Increase/Decrease(
%)
Notes
Sale expenses
25383861 8223996 208.66%
Mainly affected by the deepening
electricity reform the Company added
full-time sales staff and increased
operating expenses.
Administration expenses 688349938 638017252 7.89%
Financial expenses 1350485251 1279255541 5.57%
R & Development
expenses
5043776 16980873 -70.30%
Mainly due to the decline in the
number of R&D projects carried out by
some power plants of the Company..R& D Expenses
√ Applicable □Not applicable
No
Project
company
name
Project name Purpose
Project
progress
Target and influence
1
Guangdong
Shaoguan
Yuejiang
Power
Generation
Co. Ltd.
Optimization
research on
vacuum system
of 600 MW unit
With two vacuum
pumps operational and
one standby the power
consumption of two
vacuum pumps is
large and the
equipment operation
mode shall be changed
to achieve the aim of
energy-saving.The unit has
been
determined
and the
machine will
be selected
for
implementati
on.In order to improve the economic
performance of the unit the feasibility
study shall be undertaken for various
vacuum system optimization and
transformation schemes of the 600 MW
unit to find out the transformation scheme
conforming to the actual situations of our
plant. In the meantime the operation mode
optimization scheme of one operational
and two standby changed from two
operational and one standby shall be
implemented for the vacuum pumps of the
600 MW unit.
2
Guangdong
Shaoguan
Yuejiang
Power
Generation
Co. Ltd.
Research on
electro-hydrauli
c servo
regulating
system for
induced draft
fan of the 330
MW unit
The electro-hydraulic
servo regulating
hydraulic cylinder is
used on the axial flow
fan to replace the
mechanical regulating
hydraulic cylinder so
as to improve the
safety margin of
hydraulic cylinder.
A prototype
has been
completed
and the
commissioni
ng is
underway.To improve the operation reliability of
axial flow fan "the unplanned load down
of the unit caused by hydraulic cylinder of
fan is reduced from 3 unit-times/year to
zero" currently. It belongs to the project
prolonging the service life of equipment
and ensuring the unit reliability.
3
Guangdong
Shaoguan
Yuejiang
Power
Generation
Co. Ltd.
Research on
wind
distribution
recycling
explosion-proof
ing and
effect-raising
for coal
pulverizing
system of 330
MW unit
The safety margin
shall be improved for
the coal pulverizing
system of steel ball
coal mill of the 330
MW unit to prevent
the deflagration of coal
mill.The
feasibility
study report
has been
completed
To prevent the deflagration of the steel ball
coal mill of the 330 MW unit and improve
the operation safety margin of the coal
mill the number of deflagration is reduced
from 8 times/year to 0 times/year when the
existing coal is mixed and burned at
present. This project will improve the
operation safety of unit and coal
pulverizing system.
4
Zhanjiang
Electric Power
Co. Ltd.
Research on and
application of
deep
peak-regulating
combustion
optimization
and adjustment
technology of
boiler based on
accurate
measurement of
CO
concentration
The components and
concentrations of such
gases as flue gas CO
shall be accurately
measured on-line to
realize the refined
combustion adjustment
and optimization
control and improve
the efficiency of boiler.In progress
(the CO
measurement
system has
been
completed
with the
preparation
for the
installation
of
combustion
optimization
and
adjustment)
Such functions as automatic collection
data modeling and optimization prediction
shall be completed for the balanced
combustion monitoring data. The
combustion optimization and adjustment
and new key parameters are guided for the
boiler. The numerical simulation and
analysis for the combustion of boiler are
carried out to obtain the regularities of
distribution of flue gas temperature speed
and key gas components (O2/CO/NO)
under different typical operation
conditions. The operators are guided for
the optimization and adjustment to
improve the boiler efficiency.No
Project
company
name
Project name Purpose
Project
progress
Target and influence
5
Zhanjiang
Electric Power
Co. Ltd.
Feasibility study
on waste water
zero discharge
transformation
for #1-#4 units
According to relevant
requirements of the
group the company
must complete the
transformation for the
waste water zero
discharge of four units
before 2020.Therefore it is
required to carry out
the project of
"feasibility study on
waste water zero
discharge
transformation of
#1-#4 units of
Zhanjiang Power Co.Ltd.".In the
progress of
tender
According to the current problems existing
in the water use and drainage the waste
water of the whole plant shall be recycled
in a cascade way and comprehensively
utilized with the feasibility study
implemented to finally realize the waste
water zero discharge of the whole plant.
6
Zhanjiang
Zhongyue
Energy Co.
Ltd.
Feasibility study
on DCS system
transformation
Feasibility study on
DCS system
transformation
The
preliminary
report has
been
completed
and will be
reviewed.It is required to provide the feasibility
study scheme of the DCS system
transformation which evaluates the
current status of the DCS system and
provides the transformation direction and
suggestions and the DCS system
transformation scheme and expense
estimate of Zhejiang Zhongyue Energy
Co. Ltd. and shall include the following
contents (but not limited to): current
status transformation necessity
implementation conditions comparison of
all transformation schemes duration
expenses and conclusions of the DCS
system of units. According to the
recommended scheme of the DCS system
transformation the performance index
parameter requirements of the system shall
be proposed with the research on and
analysis for the future operation and
maintenance of the system.
7
Zhanjiang
Zhongyue
Energy Co.
Ltd.
Feasibility study
on subsequent
concentration
and curing
treatment of
waste water
treatment
system
According to specific
water quality features
of the resin reclaimed
acid-alkali waste water
and desulfurization
waste water the
technical routes of
concentration and
curing treatment shall
be compared and
evaluated for the resin
reclaimed acid-alkali
waste water and
desulfurization waste
The
preliminary
report has
been
completed
and will be
reviewed
Currently there are many technical routes
of concentration and curing treatment for
the resin reclaimed acid-alkali waste water
and desulfurization waste water and the
investment and operation costs of
evaporation and crystallization process are
very large. According to specific water
quality features of the resin reclaimed
acid-alkali waste water and desulfurization
waste water the comparison and
evaluation are undertaken in all waste
water treatment technologies to obtain the
subsequent evaporation and crystallization
process which is the most suitable for the
No
Project
company
name
Project name Purpose
Project
progress
Target and influence
water in all waste
water treatment
technologies to obtain
the subsequent
evaporation and
crystallization process
which is the most
suitable for the waste
water treatment system
of the power plant and
conduct the scheme
design and investment
estimation which are
important basis for the
investment
decision-making of
power plant
transformation project.waste water treatment system of the power
plant and conduct the scheme design and
investment estimation which are
important basis for the investment
decision-making of power plant
transformation project.
8
Guangdong
Yudean Dapu
Power
Generation
Co. Ltd.
Research on
waste water
zero discharge
of the whole
Dabu Power
Plant
In order to implement
the Action Plan for
Prevention and Control
of Water Pollution (GF
[2015] No. 17)
Implementation Plan
for Licence System
Controlling Pollutant
Discharge and
Technical Policy for
Pollution Control in
Thermal Power Plants
of the state a
feasibility study unit is
entrusted by Dabu
Power Plant to carry
out the feasibility
study on the waste
water zero discharge of
the whole plant sort
the current problems
existing in the water
use and drainage of
Dabu Power Plant
make uniform
planning and
optimization for the
water use and drainage
of the whole plant and
propose corresponding
transformation
measures and
comparison schemes to
enable the water intake
and use more
reasonable so as to
The
feasibility
study has
been
completed
1) Sort the current problems existing in the
water use and drainage of Dabu Power
Plant and make uniform planning and
optimization for the water use and
drainage of the whole plant;
2) Propose corresponding transformation
measures and comparison schemes to
enable the water intake and use more
reasonable so as to achieve the aims of
water saving and cascade use and finally
realize the waste water zero discharge of
the whole plant.No
Project
company
name
Project name Purpose
Project
progress
Target and influence
achieve the aims of
water saving and
cascade use and finally
realize the waste water
zero discharge of the
whole plant.
9
Guangdong
Yudean Dapu
Power
Generation
Co. Ltd.
Pipeline support
and hanger
adjustment and
pipeline
vibration
control of #1
and #2 units
It is required to solve
the partial pipeline
vibration of #1 and #2
units remove the
defected supports and
hangers and replace
the damaged dampers.
Completed
Such equipment faults as the fracture of
sampling pipe of the piping system and the
falling of piping system from support
incurred during the previous operation
have been eliminated with ensuring the
equipment security eradicating the safety
hazards and improving the equipment
stability.
10
Guangdong
Yudean Dapu
Power
Generation
Co. Ltd.
Function
optimization
and test of
automatic
control system
of 2×660 MW
unit
It is required to adapt
to the current situation
of power market and
new power grid
dispatching rules so
that the regulation
quality of the
automatic control
system during the deep
pressure load and
frequent peak
regulation with
varying load will meet
the operation control
requirements and the
security control level
of the unit will be
improved.The external
equipment
related to
combustion
adjustment
and CCS
coordination
has been put
into use and
the parameter
optimization
and
adjustment
are underway
currently
1) Solve the deep peak regulation and
accurate control of AGC CCS primary
frequency modulation etc. under the
status of frequent peak regulation with
varying load (such as adopting the unit
coordination and optimization control
based on intelligent algorithm and boiler
feedforward control technology
conquering the long delay and large
inertia).
2) Solve the security and economic
efficiency of combustion-wind distribution
control (such as adopting the intelligent
combustion-wind distribution optimization
control based on neural network boiler
feedforward control technology
conquering the long delay and large inertia
and fuel calorific value correction with the
comprehensive outputs of turbine boiler
and generator as the benchmark).
3) Realize the automatic precision control
of water supply in the whole course.
4) Solve the self-start and stop control and
accurate control including air volume air
temperature loading force characteristics
and separator frequency for the coal
pulverizing system of boiler.
5) Solve the problems of desulfurization
and denitration optimization and accurate
control to ensure that the environmental
emission indicators are met.
After the project implementation the
regulation quality of the automatic control
system during the deep pressure load and
No
Project
company
name
Project name Purpose
Project
progress
Target and influence
frequent peak regulation with varying load
will meet the operation control
requirements and the current situation of
power market will be adapted to.
11
Guangdong
Yudean Dapu
Power
Generation
Co. Ltd.
Blending
combustion and
combustion
strategy
adjustment test
for changed
coal type of
boiler
It is required to carry
out the optimization
and tests for fuel
control strategy air
volume control
strategy and coal
pulverizing system
control strategy.The cold test
has been
completed
Through the combustion adjustment test of
the mixed and blended coals the optimal
control strategy will be determined to
improve the adaptation security and
economic efficiency of the unit for the
changed coal type etc. under various
unknown working conditions.
12
Guangdong
Red Bay
Power
Generastion
Co. Ltd.
Application of
advanced
control
technology in
ultra-low
emission control
and energy
saving and
consumption
reduction of
units
(denitration
optimization
reheated flue
gas temperature
control and
main steam
temperature
control
concurrently)
The automatic control
of a unit such as
reheated flue gas
temperature and
denitration and
ammonia spraying
control shall be
optimized by
introducing the
advanced control
technologies (MPC
self-adaption ADRC
active-disturbance-reje
ction controller IFC
internal feedback
self-learning control
etc.) and the reheated
steam temperature and
NOx concentration
shall be accurately
controlled to reduce
the desuperheating
water and the quantity
of ammonia sprayed of
the reheater.The software
and hardware
have been
installed and
are underway
for
debugging.The unit shall be energy-saving with lower
consumption to obtain the maximum
economic benefit.
13
Guangdong
Red Bay
Power
Generastion
Co. Ltd.
Research and
application pilot
of energy
storage and
combined
frequency
modulation for
large thermal
power units
The energy storage
equipment shall be
added for a unit of
Honghaiwan Power
Generation Co. Ltd. to
carry out the AGC
frequency modulation
together with the
combined generator
The
feasibility
study has
been
completed
and the pilot
has not be
commenced
yet
The AGC frequency modulation service
quality shall be optimized by new
technology of energy storage to achieve
the fast turn with precise output and
instantaneous adjustment offset the
response deviation of generator set and
improve the response rate of unit adjusted
with the AGC instructions so as to
provide the quality and efficient auxiliary
No
Project
company
name
Project name Purpose
Project
progress
Target and influence
set. service for the power system.
14
Guangdong
Red Bay
Power
Generastion
Co. Ltd.
Steam
distribution
sliding pressure
and energy
conservation
optimization of
#2 steam
turbine set
The steam distribution
mode of sequence
valve shall be added
based on the former
combination valve
and the sliding
pressure curve shall be
optimized according to
the unit test with the
liquid levels of
high-pressure heater
and low-pressure
heater the opening of
recycle valve of the
steam pump and the
automatic
optimization.The
installation
has been
completed
and it is
ready for
commissioni
ng.Reduction of unit energy consumption and
efficiency improvement
15
Guangdong
Red Bay
Power
Generastion
Co. Ltd.
Self-adaptation
control for
outlet
temperature of
(super-critical)
boiler coal mill
of #1 and #2
units
On the premise of
ensuring the safe
operation of the boiler
body and coal
pulverizing system the
external control system
collects the coal
quality data and
operation parameters
of coal mill from the
SIS system and
conduct the logical
analysis and operation
for these data to
achieve the
self-adaptation control
for the outlet
temperature of boiler
coal mill.The
equipment
has been
installed and
is underway
for the
commissioni
ng and test
run
The optimization is required by the
operation control for the coal pulverizing
system of boiler with improving the outlet
temperature of coal mill reducing the
smoke exhaust temperature of boiler and
enhancing the boiler efficiency under the
self-adaptation control.
16
Guangdong
Red Bay
Power
Generastion
Co. Ltd.
Water balance
test of four units
in the whole
plant and
feasibility study
on
comprehensive
treatment of
waste water
It is required to
propose the evaluation
results for the current
operation effect of the
water treatment system
and sewage (including
sludge) treatment
system through the
accurate tests and
scientific
Completed
The waste water control plan of our plant
shall be formulated and the waste water
zero discharge transformation shall be
completed before 2020.No
Project
company
name
Project name Purpose
Project
progress
Target and influence
computational
analysis elaborate the
necessity and
feasibility of waste
water zero discharge
perform the detailed
comparison
demonstration for all
transformation
schemes put forward
the best transformation
scheme for the waste
water zero discharge
propose the
transformation scheme
for the corresponding
supporting works and
obtain the feasibility
study report.
17
Guangdong
Electric Power
Development
Co. Ltd.
Shajiao A
Power Plant
System
maintenance
and equipment
update for
one-unit-double
-module
simulation
machine of 200
MW and 300
MW units
Regarding the 200
MW and 300 MW
simulation machine
systems in the Shajiao
A Power Plant with the
remote access
function the technical
upgrading
maintenance and
service are required for
the #1 and #5 units
public system network
control and denitration
and desulfurization
equipment as well as
remote training in
other places after the
accurate simulation
transformation.
Completed
Referring to the #1 and #5 units the
re-commissioning is required for all
operation parameters and operation
conditions as per 1:1. Referring to the
systems of the #1 and #5 units the
engineering differences shall be modified
as required with the addition of
corresponding faults. All relevant
operations on DCS shall be consistent with
those on the unit to ensure the consistency
of on-off operation status. The system
maintenance of simulation machine
includes the operation stability and
hardware and software faults of the whole
set of simulation machine system and the
system shall be stably operated.
18
Guangzhou
Huizhou
Natural Gas
Power
Generation
Co. Ltd.
Information
security
integrated
service project
It is planned to rectify
and repair the public
network IP the
Internet applications
server host etc. with
potential safety hazard
and also deploy the
copyrighted software
detecting platform in
the internal office
computer of the
company to comply
with the provincial and
municipal software
legalization
Completed
The project contents have been completed.The provincial and municipal software
legalization system management
requirements have been met and the
related requirements of public security net
police have been met by the Internet
boundary and external websites.No
Project
company
name
Project name Purpose
Project
progress
Target and influence
management
requirements.
19
Guangdong
Huizhou
Pinghai Power
Generation
Co. Ltd.
Energy-saving
optimization
and
management
decision-makin
g system based
on online
simulation
1000 MW
thermal power
unit
For the project
research the
simulation model shall
be established and the
big data optimizing
technology shall be
used to establish the
dynamical system of
unit in the overall
working conditions. It
is required to study
and establish the
dynamic and static
characters of the unit
build the endogenetic
closed-loop optimizing
management mode and
deeply excavate the
man-machine potential
to achieve the goals of
overall improvement
of unit performance
and continuous
optimum energy
consumption.
Completed
1) The data has been shared for the unit
control simulation and information
system and the integration of actual
measured data and virtual data and of
real-time data and historical data has been
highlighted to provide the data support for
the system optimization function to
support the online analysis diagnosis and
optimization of the production by the
power plant in the whole process.
2) The dynamic benchmarking base in the
overall working conditions and optimizing
algorithm model of the unit has been
established to provide the platform and
tools for the actual energy saving and
consumption reduction of the unit.
3) The cockpit of management has been
realized so that the managers will handle
the key data related to production
operation and management of the power
plant in a one-stop way to provide the
important information support for the
production operation and management
decision-making.
20
Guangdong
Wind Power
Generation
Co. Ltd.
Infrastructure
management
information
system (MIS)
project
According to the
information-based
construction planning
the wind power
company aims to build
a set of infrastructure
MIS to realize the
whole process
management for all
wind power projects
subordinate to
Guangdong Wind
Power Company.
Completed
For the infrastructure MIS the
development condition evaluation in the
early project stage project approval and
investment decision-making project
construction commencement and complete
project management before the projects
are qualified in the "240" production
acceptance have been completed for all
projects of the company
No
Project
company
name
Project name Purpose
Project
progress
Target and influence
21
Maoming
Zhenneng
Thermoelectri
c co. Ltd.Research on
anti-blocking
and
comprehensive
treatment for
heat exchanger
elements of air
pre-heater of
600 MW unit
Through the unit
operation parameter
collection and tests
the ammonium
bisulfate blocking shall
be analyzed and
researched for the
hot-end heat exchanger
elements of the air
pre-heater after the
ultra-low emission
transformation of the
#7 unit and the
optimal design
technical requirements
transformation cost
and other factors of the
heat exchanger
elements shall be
proposed. The design
shall be conducted
according to all
economic and
reliability parameters
and the requirements
of preventing the heat
exchanger element
corrosion of air
pre-heater and
effectively prolonging
the normal service life
of air pre-heater to
ensure the long-term
safe sound and
economical operation
of the air pre-heater.It is a
multi-year
project. The
design and
supply were
completed in
2018. The
construction
was started
during the
Class-B
overhaul of
the unit in
February
2019 and
has been
completed
basically at
present. The
start-up and
commissioni
ng will be
started in
April.
1) Prevent the corrosion and blocking of
heat exchanger elements in the air
pre-heater;
2) Effectively prolong the normal service
life of air pre-heater;
3) Reduce the power consumption of fans;
4) Reduce the air leakage of air pre-heater.
22
Maoming
Zhenneng
Thermoelectri
c co. Ltd.Plant-level AGC
system
transformation
It refers to that the
AGC instruction is
changed to the load
instruction of the
whole plant from the
former single unit and
the load optimization
calculation shall be
undertaken via the
AGC server after
receiving the load
instruction of the
whole plant issued by
the dispatcher. The
AGC instruction will
be reasonably
distributed to all units
by the AGC server as
Completed
After the plant-level AGC is put into
operation the net coal consumption rate
will be reduced by 0.2% at least under the
ideal working conditions compared with
that in the single AGC mode.No
Project
company
name
Project name Purpose
Project
progress
Target and influence
per such principles as
economical efficiency
rapidity and regulation
frequency so as to
realize the safe stable
and economical
operation of all units in
the power plant.
23
Guangdong
Yudean
Jinghai Power
Generation
Co. Ltd.
DEH and MEH
control system
optimization of
#3 and #4 units
Upon the formal
situations it is
required to coordinate
the control system and
water supply control
system add the
configuration analog
quantity output
modules and add the
configuration analog
quantity input modules
for the DEH and MEH
control systems.
Completed
The easy switch of DC power supply and
the complete electrical isolation shall be
realized by the DC power isolation to
ensure no electrical connection of
two-circuit DC power supply in operation
and guarantee the reliability of the DEH
and MEH control systems.Situation of Research and Development Input by the Company
2018 2017 Increase/Decrease(%)
Number of Research and
Development persons (persons)
303 357 -15.13%
Proportion of Research and
Development persons
4.41% 5.13% -0.72%
Amount of Research and
Development Investment ( Yuan)
15319005 27896103 -45.09%
Proportion of Research and
Development Investment of
Operation Revenue
0.06% 0.10% -0.04%
Amount of Research and
Development Investment
Capitalization ( Yuan)
10275228 10915230 -5.86%
Proportion of Capitalization
Research and Development
Investment of Research and
Development Investment
67.08% 39.13% 27.95%
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √ Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
□ Applicable √ Not applicable
.Cash Flow
In RMB
Items 2018 2017 Increase/Decrease(%)
Subtotal of cash inflow received
from operation activities
31552291981 31168841936 1.23%
Subtotal of cash outflow received
from operation activities
25552355625 27492807433 -7.06%
Net cash flow arising from
operating activities
5999936356 3676034503 63.22%
Subtotal of cash inflow received
from investing activities
553123440 272155161 103.24%
Subtotal of cash outflow for
investment activities
3863003329 3555163705 8.66%
Net cash flow arising from
investment activities
-3309879889 -3283008544 -0.82%
Subtotal cash inflow received
from financing activities
18696353753 14959157340 24.98%
Subtotal cash outflow for
financing activities
20812608337 15540475704 33.93%
Net cash flow arising from
financing activities
-2116254584 -581318364 -264.04%
Net increase in cash and cash
equivalents
573802402 -188293160 404.74%
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
1. The net cash flow from operating activities increased by 63.22% mainly due to the decrease in cash purchases
for fuel purchases due to the transfer of power generation rights of some units.
2. The cash inflow from investment activities increased by 103.24% mainly due to the acquirement of 162 million
yuan of monetary funds from the merger of Maoming Thermal Power Plant.
3. The net cash flow from financing activities decreased by 264.04% mainly due to the repayment of corporate
bonds and other long-term and short-term loans.
4. The net increase of cash and cash equivalents was 404.74% which was mainly due to the increase in net cash
flow from operating activities during the reporting period and the decrease in net cash flow from financing
activities.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 2018 End of 2017
Proportion
increase/
decrease
Notes to the
significant change Amount
Proportion in
the total
assets(%)
Amount
Proportion in the
total assets(%)
Monetary fund 5574382892 7.60% 4996580490 7.04% 0.56%
Accounts receivable 3358331949 4.58% 2826237259 3.98% 0.60%
Inventories 1481817270 2.02% 1527634773 2.15% -0.13%
Investment real
estate
10810722 0.01% 8296639 0.01% 0 %
Long-term equity
investment
6395134754 8.72% 5801006412 8.17% 0.55%
Fixed assets 41157594848 56.13% 41010868549 57.76% -1.63%
Construction in
process
7740754343 10.56% 8503556373 11.98% -1.42%
Short-term loans 7526000000 10.26% 9270000000 13.05% -2.79%
Long-term loans 18802292664 25.64% 19465723869 27.41% -1.77%
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Items
Amount at
year
beginning
Gain/loss on
fair value
change in the
reporting
period
Cumulative fair
value change
recorded into
equity
Impairment
provisions in
the reporting
period
Purchased
amount in the
reporting
period
Sold amount
in the
reporting
period
Amount at
year end
Financial assets
3.
Avaliable-for-sale
financial assets
408992985 550678145.73 704342514.73 180135200 1139806331
Total 408992985 550678145.73 704342514.73 180135200 1139806331
Financial
Liability
0 0
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
（1）Pledge of assets
As of December 31 2018 the Company had a total of accounts receivable with a book value of 396323295 yuan
(as of December 31 2017: 402847793 yuan) together with the power charge rights of several power generation
subsidiaries were pledged to the bank to obtain long-term loans of 2765356586 yuan of which: the balance of
long-term loans due within one year was 213259115 yuan (as of December 31 2017: 2698978707 yuan). The
borrowings are detailed as follows:
1.As at December 31 2018 the long-term pledge borrowings of the following subsidiaries were based on their
power fee charging rights and accounts receivable as pledges:
In RMB
Name December 31 2018 December 31 2017
Guangdong Shaoguan Yuejiang Power Generation Co. Ltd. 2151963439 2276504889
Guangdong Yudean Leizhou Power Generation Co. Ltd. 236829612 188420594
Guangdong Yudean Qujie Wind Power Generation Co. Ltd. 162820000 -
Guangdong Yudean Zhanjiang Wind Power Generation Co. Ltd. 138945000 156465000
Guangdong Yudean Xuwen Wind Power Generation Co. Ltd. 74798535 77588224
Total 2765356586 2698978707
In RMB
Name December 31 2018 December 31 2017
Guangdong Shaoguan Yuejiang Power Generation Co. Ltd. 186859840 180897292
Guangdong Yudean Zhanjiang Wind Power Generation Co. Ltd. 18274167 17520000
Guangdong Yudean Xuwen Wind Power Generation Co. Ltd. 6527993 10062668
Guangdong Yudean Leizhou Power Generation Co. Ltd. 1597115 1099615
Total 213259115 209579575
V.Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2018(RMB) Investment Amount in 2017(RMB) Change rate
1179713500 585140000 101.61%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
2.As at December 31 2018 the long-term pledge borrowings of the following subsidiaries due within
one year were based on their power fee charging rights and accounts receivable as pledges:
Name of the
Company
Invested
Main
Business
Investment
Way
Investment
Amount
Share
Proport
ion %
Capital
Source
Partner
Investment
Horizon
Product
Type
Progress up to Ba
lance Sheet Date
revenue
projecti
on
Gain or L
ess or the
Current I
nvestment
Whether
to Inv
olve in
Lawsuit
Date of
Disclosure
(Note 5)
Disclosure Index
Guangdong
Yudean Qujie
Wind Power
Generation
Co. Ltd.
Wind
Power
Generatio
n
Capital inc
rease
548000000
100 %
Self
funds
No Long-term
Electric
power
During the reporti
ng period the co
nstruction of Zhan
jiang Wailuo Offs
hore Wind power
project was unde
r normal progress
-- No
March 2
22018
Announcement No.:2018-16)P
ublished in
China Securities Daily S
ecurities Times and http
//.www.cninfo.com.cn
Guangdong
Wind Power
Generation
Co. Ltd.
Wind
Power
Generatio
n
Capital inc
rease
365000000
100 %
Self
Funds
No Long-term
Electric
power
During the reporti
ng periodZhuhai
Jinwan offshore w
ind power project
and Yangjiang S
hapa offshore prel
iminary work or
project constructio
n was under nor
mal progress.-- No
April 28
2018 Au
gust 312
018
Announcement No.:2018-29)P
ublished in
China Securities Daily S
ecurities Times and http
//.www.cninfo.com.cn
GuangdongHu
izhou Natural
Gas
Thermoelectri
c Co. Ltd.
Natural
Gas
Generatio
n
Capital inc
rease
103578300
67 %
Self
Funds
China Petroleum
& Gas Group Co.Ltd.（shareholdingratio：33%）
Long-term
Electric
power
During the reporti
ng period Huizho
u LNG power pla
nt phase II expan
sion project #4 #
5 completed
-- No
April 28
2013
Announcement No.:2013-36)P
ublished in
China Securities Daily S
ecurities Times and http
//.www.cninfo.com.cn
Guangdong
Yudean
Property
Insurance Co.Ltd.Property
Insurance
Capital inc
rease
98000000 49 %
Self
Funds
Guangdong Yudean Group（shareholding ratio：51%）
Long-term
Insuran
ce
In normal operati
on
14704347
No
April 28
2018
Announcement No.:2018-28)P
ublished in
China Securities Daily S
ecurities Times and http
//.www.cninfo.com.cn
Shenzhen
Capital Group
Co. Ltd.
Investme
nt
Capital inc
rease
65135200 3.67%
Self
Funds
State-owned assets
Supervision and
Administration Co
mmission of Shen
Long-term
Venture
Capita
l
In normal operati
on
16978500
No
September
202018
Announcement No.:2018-50)P
ublished in
China Securities Daily S
Name of the
Company
Invested
Main
Business
Investment
Way
Investment
Amount
Share
Proport
ion %
Capital
Source
Partner
Investment
Horizon
Product
Type
Progress up to Ba
lance Sheet Date
revenue
projecti
on
Gain or L
ess or the
Current I
nvestment
Whether
to Inv
olve in
Lawsuit
Date of
Disclosure
(Note 5)
Disclosure Index
zhen Municipal pe
ople's Government
（shareholding rati
o：28.1952%）
ecurities Times and http
//.www.cninfo.com.cn
Total -- -- 1179713500 -- -- -- -- -- -- 0 31682847 -- -- --
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
Security
category
Security
code
Stock
Abbreviation:
Initial
investment
cost
Mode of
accounting
measurement
Book value
balance at the
beginning of the
reporting period
Changes in
fair value of
the this period
Cumulative fair
value changes in
equity
Purchase
amount in
the this
period
Sale
amount in
the this
period
Gain/los
s of the
reportin
g period
Book value
balance at the
end of the
reporting
period
Accounting
items
Source of
the shares
Domestic
and foreign
stocks
000027
Shenzhen
Energy
15890628 FVM 76356000 -10206000 50259372 66150000
Financial
assets
available
for sales
Self funds
Domestic
and foreign
stocks
600642 Shenergy 235837988 FVM 325418985 -54421605 35159392 270997380
Financial
assets
available
for sales
Self funds
Domestic
and foreign
stocks
831039 NEEQ 3600000 FVM 7218000 -3600000 18000 3618000
Financial
assets
available
for sales
Self funds
Total 255328616 -- 408992985 -68227605 85436764 0 0 0 340765380 -- --
Disclosure date for the notice of
approval by the Board (If any)
Disclosure date for the notice of
approval by shareholders’ Meeting
(If any)
（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 Name
Compa
ny type
Sectors
engaged in
Registered
capital
Total assets Net assets Turnover
Operating
profit
Net Profit
Shenzhen
Guangqian Electric
Power Co. Ltd.Subsidi
ary
Power
generation
and power
station
construction.
1030292500 1738775134 1523688363 1578959468 293140274 217741510
Guangdong
Huizhou Pinghai
Power Generation
Plant Co. Ltd.Subsidi
ary
Power
generation
and power
station
construction.
1370000000 5717822858 2059658267 3409291625 621336918 447090283
Guangdong
Huizhou Natural gas
Power Generation
Co. Ltd.
Subsidi
ary
Power
generation
and power
station
construction.
1455893000 4188347804 1977252192 2181208736 346582409 258912703
Guangdong Red
Bay Power
Generation Co. Ltd.Subsidi
ary
Power
generation
and power
station
construction.
2749750000 6702910738 3302013741 4089089204 314389189 230336446
Zhanjiang Electric
Power Co. Ltd.Subsidi
ary
Power
generation
and power
station
construction.
2875440000 4447726762 4087805472 1997634196 254675122 234112612
Guangdong Yudean
Jinghai Power
Generation Co. Ltd.Subsidi
ary
Power
generation
and power
station
construction.
2919272000 9198927667 3509291691 4871729888 156318617 118466364
Maoming Zhenneng Subsidi
Power
generation
1437985100 3032630588 1310428812 1552628327 -136049753 -98577591
Company Name
Compa
ny type
Sectors
engaged in
Registered
capital
Total assets Net assets Turnover
Operating
profit
Net Profit
Company ary and power
station
construction.Lincang Yudean
Energy Co. Ltd.
Subsidi
ary
Power
generation
and power
station
construction.
396490000 1365862109 282527679 74926701 -87439014 -87568487
Zhanjiang
Zhongyue Energy
Co. Ltd.
Subsidi
ary
Power
generation
and power
station
construction.
1454300000 4386995844 899427220 1543769329 -187824299 -138013508
Guangdong Yudean
Dapu Wind Power
Generation Co. Ltd.Subsidi
ary
Power
generation
and power
station
construction.
1000000000 4780260094 805422561 1257056007 -203308409 -151414529
Guangdong
Shaoguan Yuejiang
Wind Power
Generation Co. Ltd.Subsidi
ary
Power
generation
and power
station
construction.
1400000000 6913710134 412931527 2181861777 -364193226 -364749341
Shanxi Yudean
Energy Co. Ltd.
Sharing
Compa
ny
Coal
Investment
1000000000 3843006761 3601608790 3689284 569419971 569420122
Guangdong Guohua
Taishan Power
Generation Co. Ltd.Sharing
Compa
ny
Power
generation
and power
station
construction.
4669500000 10923026575 7643625249 8171917086 1091644135 811868081
Guangdong Power
Industry Fuel
Company
Sharing
Compa
ny
Coal Trade 630000000 2994601862 1045593651 21313952451 187894245 151229161
Guangdong Yudean
Finance Co. Ltd.
Sharing
Compa
ny
financial
service
2000000000 22559762521 2845792424 720277335 418717268 341902454
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □ Not applicable
Company name
Way of acquiring and disposing of
subsidiary corporations within the
reporting period
Impact on the whole producing operation
and performance
Guangdong Yudean Zhuhai Offshore Wind
Power Co. Ltd.Invested
During the reporting period Zhuhai
Jinwan offshore wind power project was in
the preliminary stage and with construction
not commenced yet.Guangdong Yudean Zhencheng Integrated
Energy Co. Ltd.
Invested There is no significant impact
Note:
. During the reporting period the profits of most coal-fired power plants decreased significantly year on year due
to the increase in coal prices and the concession of market electricity prices. Some subsidiaries such as Yuejiang
Company Zhanjiang Zhongyue Company Zhenneng Company and Dapu Power Plant suffered operating losses.
2. Due to the power market reform in Yunnan Province Lincang Company a wholly-owned subsidiary of the
Company suffered from operating losses during the reporting period due to lower electricity consumption and low
electricity price，and impairment of assets. Guangqian Company Huizhou LNG and other companies with strongprofitability for natural gas power generation projects have made a greater contribution to the company's net profit
to its parent.
3. The company's investment income in affiliated companies has increased overally. Among them Shanxi Energy
Company has strong profitability due to the continuous high price of coal; Affected by the year-on-year increase
in electricity Taishan Power Plant's year-on-year profit increases significantly; Due to the continuous expansion
of business scale the profits of financial companies has a larger year-on-year increase..Special purpose vehicle controlled by the CompanyⅧ
□ Applicable √ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
Currently China's power generation industry continues to present a diversified competitive pattern. The
company's main power assets are mainly in Guangdong Province which is with many other power producers and
is greatly affected by the power transmission from west to east. China's electricity production has always been
driven by thermal power. Although the proportion of thermal power has decreased with the rapid development of
nuclear power hydropower wind power solar energy and other new and renewable energy sources in the past
decade thermal power is still the main power source in China. The problem of excess coal power production
capacity and excessive increase in installed capacity across the country has been significantly curbed. However
due to China's energy structure of "rich coal deficient oil and lean gas" the current situation that China's basic
energy supply is dominated by coal cannot be changed for a foreseeable period of time. Moreover a
break-through has been made for the ultra-clean emission power generation technology for large coal-fired power
generation units currently and there is still room for development of large-capacity and high-parameter coal-fired
power generation units in the future. In addition investment in large-scale natural gas power generation projects
conforms to the national policy guidance. Although the gas price of natural gas is relatively high and the economy
of investment in gas turbine projects is still not ideal currently with the deepening of power system reform the
compensation mechanism for social effects of gas turbine is expected to achieve a breakthrough in the future and
is expected to have a better development prospect in the future. With the deepening of power system reform the
transaction scale of power market has expanded and the level of price difference is uncertain. Therefore in this
environment the thermal power industry will mainly rely on developing large-capacity and high-parameter coal
power and accelerating gas power to optimize its structure upgrading its technical strength to reduce consumption
and increase efficiency marketing to obtain electric quantity and electricity prices and reducing costs and
increasing efficiency to reduce management costs.
2. Corporate development strategy
During the 13th Five-Year Plan period the company established the strategic orientation of "Large-scale group
power generation listed companies serving the national strategy group strategy and urban development with
power generation business as its main development area industrial operation as its main development idea and
domestic first-class and power generation listed companies with international competitiveness as its main
development direction" to optimize the development of coal and electricity steadily develope gas and electricity
vigorously develope clean energy sources such as wind power and hydropower continuously optimize the power
supply structure and select the pattern of high efficiency cleanness and low carbon. For future development the
company will actively distribute clean energy sources such as wind power gas power and hydropower and
optimize the power generation structure; In combination with relevant national policies it will actively promote
large and reduce small for upgrade and transformation for thermal power projects to improve the quality of power
supply; It will actively expand the electricity sales business conform to the situation of power system reform and
explore new business fields and development space.
3.Production and operation plans
In 2019 the company's consolidated statement has a budget target value of 70.981 billion kilowatt hours of
on-grid electricity which is basically the same as the actual amount of on-grid electricity completed in 2018; The
budgetary target value of the main business revenue is RMB 27.927 billion an increase of RMB 800 million and
increase of 2.95 % compared to the actual amount of main business operating revenue of RMB 27.126 billion; the
budgetary value for the full-year planned investment is RMB 1.2531 billion an increase of RMB 350 million or
an increase of 29.75% over the actual completed investment of RMB 1.18 billion in 2018.(Note: The above operating plan does not represent the company's profit forecast for 2019 whether it can be
achieved depending on various factors such as changes in the electricity market and coal market conditions thus
there is considerable uncertainty and investors should pay special attention to it.)
4.Possible risks
Firstly the main business is under constant pressure. Due to the expansion of power transmission from the west to
the east and the continuous production of nuclear power and gas power in the province the market share of coal
power in the province has been reduced and the utilization hours of coal-fired units in the company are at risk of
further decline. Long-term deep peak regulation low-load operation and repeated start-up and shutdown seriously
affect the safety and economy of the units. Coal prices continue to run at high levels generating costs remain high
and environmental protection investment needs to be increased which affect the economic benefits of the unit. In
2019 Guangdong's electricity market will expand to 200 billion kilowatt-hours with a year-on-year increase of 40
billion kilowatt-hours accounting for 45% of the province's electricity generation and the average price of
electricity sold may further decline against the background of an oversupply of electricity.Secondly the project development is limited. Under the current policy environment the overall economic benefits
of coal-fired units are relatively poor and only large units in coastal areas are relatively stable. Although the clean
energy business of the company has made great progress in recent years its overall proportion is still relatively
low and the investment income of the newly-launched cogeneration project needs to be improved. The task of
optimizing the main business structure is arduous.Thirdly the system and mechanism is lacking in competitiveness. With the deepening of state-owned enterprise
reform power system reform and supply-side reform the degree of marketization of upstream and downstream
enterprises in power production continues to improve which reduces the profitability of the company. However
the company's internal management mechanism operation mode and allocation measures still remain under the
traditional system. It is necessary to speed up the reform of the system and mechanism so as to truly improve the
company's market competitiveness.(V) Countermeasures
Firstly focus on improving quality and efficiency improving the level of management and improving the quality
and efficiency of enterprise operations. Comprehensively organize the value chain of
"purchase-production-supply-sale" of power generation enterprises reasonably define the management interface
and value interface implement the management responsibility for compacting relevant factors fully connect with
the coal natural gas and electricity markets establish a new mechanism that is conducive to releasing the
operating pressure of the main power industry to the market and improve the market competitiveness of power
generation enterprises. Ensure that Guangdong Electric Power's characteristic power marketing system is
implemented in place so that power marketing can more adapt to market changes. Continue to promote all-round
meticulous management for all employees continuously improve the management level and enhance the quality
and efficiency of enterprise operation.Secondly adhere to the new development concept and steady progress and improve the quality of development.
Continue to implement the deployment and instruction spirit of Guangdong provincial government on vigorously
developing offshore wind power and promoting industrial transformation and upgrading and accelerate the
development of offshore wind power projects; In combination with national policies encourage the development
of clean energy sources such as natural gas and biomass and the clean and efficient use of coal accelerate the
layout of gas clean coal and biomass power generation projects and strive for new development opportunities;
Based on the development plan of Guangdong-Hong Kong-Macao Greater Bay Area full use the opportunity of
decommissioning and reconstruction of Shajiao Power Plant to build a super-strong energy supply base with
combined supply of gas electricity heat and coldness.Thirdly persist in the mechanism of deepening the reform and innovating the development. Taking the
opportunity of the controlling shareholder Guangdong Energy Group's implementation of the three-level control
mode adjustment of "group headquarters+platform enterprises+business units" further straighten out its control
mode over subordinate enterprises optimize the system process and establish an efficient control system with
hierarchical responsibility hierarchical decision-making and hierarchical management to ensure that it is "well
received and well managed". Vigorously promote the construction of incentive and restraint mechanisms
formulate new measures for the assessment and compensation incentive management of subordinate enterprises
establish a new assessment index system that integrates party building safety operation development and
enterprise management and establish a long-term incentive mechanism that combines long term and short term
focuses on both incentives and constraints and integrates benefit distribution and long-term value creation.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
May 252018 Onsite investigation Organization
Details can be found in the Record Chart of the
Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 29 May 2018.June 72018 Onsite investigation Organization
Details can be found in the Record Chart of the
Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 11 June 2018.July 52018 Onsite investigation Organization Details can be found in the Record Chart of the
Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 6 July 2018.July 242018 Onsite investigation Organization
Details can be found in the Record Chart of the
Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 26 July 2018.September 262018 Onsite investigation Organization
Details can be found in the Record Chart of the
Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 8 October 2018.November 202018 Onsite investigation Organization
Details can be found in the Record Chart of the
Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 23 November 2018.Reception times 6
Reception agency amount 26
Reception personal number 34
Others 0
Whether to disclose reveal or disclose non-public
material information
No
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 161
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.
During the reporting period the Company strictly implemented the profit distribution policy in accordance with
the relevant provisions of the Articles of Association. From 2016 to 2018 the company's cash dividends accounted
for 44.85% 56.52% and 66.39% of the distributable profits realized in each year respectively. In the future the
company will continue to maintain the continuity rationality and stability of cash dividends and actively repay its
shareholders.Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article
of Association
Yes
Well-defined and clearly dividend standards and proportion Yes
Completed relevant decision-making process and mechanism Yes
Independent directors perform duties completely and play a
proper role
Yes
Minority shareholders have ample opportunities and their
legitimate rights and interests are effectively protected
Yes
Condition and procedures are compliance and transparent while
the cash bonus policy adjusted or changed
During the reporting period the company's cash dividend policy
was not adjusted or changed.Statement on profit distribution plan and capitalization of capital reserve plan of the Company in nearly three
years (including the report period)
The company’s dividend distribution plan of the year 2018 was: Based on that the total share capital of the
company is 5250283986 shares for A-share the company will distribute cash dividends of RMB 0.60 (tax
inclusive per 10 shares; for B-share the company will distribute cash dividends of RMB 0.60 (tax inclusive) per
10 shares.
The company’s dividend distribution plan of the year 2017 was: Based on that the total share capital of the
company is 5250283986 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 2016 was: Based on that the total share capital of the
company is 5250283986 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.
Cash dividend in latest three years
In RMB
Year
Amount for
cash bonus
(tax included)
Net profit
attributable to
the over of the
parent company
in the
consolidated
financial
statements
Ratio in net profit
attributable to the
parent company
in the
consolidated
financial
statements
Amount of
cash
dividends
from cash
offer to
repurchase
shares of the
funds
Proportion of
cash dividends
from cash
offer to
repurchase
shares of the
funds
Amount for
cash bonus
(tax included)
Ratio of the total cash
bonus (other ways
included) in net profit
attributableto common
stock shareholders of
listed company contained
in consolidation statement
2018 315017039.16 474461997 66.39% 0 0 % 315017039.16 66.39%
2017 420022718.88 743180431 56.52% 0 0 % 420022718.88 56.52%
2016 420022718.88 936534941 44.85% 0 0 % 420022718.88 44.85%
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
Bonus shares distributed at the rate of _(share)for every 10 shares 0
Dividend distributed at the rate of CNY___ for every 10 shares
(with tax inclusive)
0.60
Number of shares converted for every 10 shares (shares) 0
Share capital base for the dividend distribution preplan (shares) 5250283986
Total cash dividend distributed (with tax inclusive) 315017039.16
Amount of cash dividend distributed in other way(s) (such as
shares repurchased)
0
Total amount of cash dividend (including other way(s)) 315017039.16
Profit available for distribution (CNY) 2576482555
Proportion of the cash dividend in the total profit available for
distribution (%)
100%
Particular about cash dividend in the period
If the company’s development is at the growth stage with arrangements of significant capital expenditures the minimum proportion
of cash dividend in the profit distribution should reach 20%.
Details of proposal of profit distribution preplan or share conversion from capital public reserve
In 2018 the base number for the company’s net profits distribution is RMB473886117 plus the non-distributed profits of RMB
22102596438 in the prior year thus the upper limit of the distributable profits is RMB2576482555. According to the Articles of
Association of the company draw RMB117603557 for the statutory surplus reserve taking for 10% of net profits draw
RMB294008893 for the other surplus reserve taking 25% of the total net profits then the upper limit of the distributable profits to
the shareholders is RMB2164870105. The company's 2018 annual profits distribution plan is: Based on that the number of the
company’s total share capital at the end of 2018 is 5250283986 shares planned that the company will distribute cash dividends of
RMB0.60 (tax inclusive) to A-share shareholders and the company will distribute cash dividends of RMB 0.60 (tax inclusive) to
B-share shareholders thus the total distribution of profits is RMB 315017039.16 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.Nil
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.
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
Changes in Presentation Methods of Financial Statements
According to the requirements of the Notice on Revising and Issuing the Format of General Enterprise Financial
Statements for 2018 (Caikuai [2018] No. 15) the balance sheet will merge "notes receivable" and "accounts
receivable" into newly added "notes receivable and accounts receivable" merge "interest receivable" and
"dividend receivable" into "other receivables" merge "fixed assets liquidation" into "fixed assets" and merge
"engineering materials" into "construction in progress" merge "bills payable" and "accounts payable" into the
newly added "bills payable and accounts payable" and merge "special accounts payable" into the "long-term
payables"; In the income statement an additional item entitled "research and development expenses" is added to
report expenditures incurred in the process of research and development and detailed items entitled "interest
expenses" and "interest income" are split under the item entitled "financial expenses"; The Company has
conducted a corresponding retrospective application on the comparison data. The change of accounting policy has
no effect on the merger net profit of the company and shareholders' equity.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 place Registered address Nature
Registered
capital
Proportion
(%)
Acquired
Guangdong Yudean
Zhuhai Offshore Wind
Power Co. Ltd.Zhuhai
Guangdong
Jinwan District
Zhuhai Guangdong
Electric
Power
65000000 100.00% Invested
Guangdong Yudean
Zhencheng Integrated
Energy Co. Ltd.
Maoming
Guangdong
Maonan District
Maoming Guangdong
Electric
Power
20000000 37.23% Invested
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) 333
Continuous life of auditing service for domestic accounting firm 3
Name of domestic CPA Wang Bin Guo Biyu
The Continuous Years of Audit Service of Certified Public
Accountants of China Certified Public Accountants
The Continuous Years of Wang Bin is 3and Guo Biyu is 1.Has the CPAs been changed in the current period
□ Yes √ No
Description of the CPAs financial adiver or sponsor engaged for intemal control auditing
□Applicable √ Not applicable
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 major lawsuits and arbitrations of the Company
XIII.Situation of Punishment and Rectification
□Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XV.Implementation Situation of Stock Incentive Plan of the Company Employee Stock Ownership Plan 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.. 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)2018 daily related transactions were carried out after examination and approval by 2018 second provisional
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 17
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 2017 annual general shareholder meeting
for implementation.
(3)According to the statement of the controlling shareholder Guangdong Energy Group Co. Ltd. on undertaking
to fulfill relevant matters in order to avoid horizontal competition and fulfill its commitment to relevant
horizontal competition the company and Guangdong Energy Group have signed the Equity Trust Agreement
which entrusts the shareholders' rights of the company within the trust scope of Guangdong Energy Group to the
Company except the rights of ownership income and disposition. The expected trust fee is 2.45 million/year
which is reviewed and approved by the second meeting of the ninth board of directors of the Company.
(4) In order to effectively protect the property value of power generation equipment reduce the risk cost improve
the risk control level and ensure the smooth progress of production and operation activities the Company and
Guangdong Yudean Property Self-Insurance Co. Ltd. a affiliated party signed the Insurance Cooperation
Framework Agreement in which the self-insurance company provides insurance and risk management services to
the Company and its holding subsidiaries. The total cost within the term of the agreement shall not exceed 400
million yuan which was reviewed and approved by the second meeting of the Ninth Board of Directors of the
Company.
(5) In order to further enhance the self-insurance company's ability to undertake insurance business and enhance
the enterprise's ability to resist risks the Company and its affiliated party Guangdong Energy Group jointly
increased capital to the self-insurance company of which the Company increased capital by 98 million yuan
according to its 49% equity ratio. The above matters were reviewed and approved by the third meeting of the
ninth board of directors of the Company and approved by the annual general meeting of shareholders of the
Company in 2017.
(6) In order to ensure the safety of capital supply broaden financing channels ease the pressure of capital
maintain and promote the smooth progress of production operation and investment activities the Company and
Guangdong Yudean Financial Leasing Co. Ltd. signed a Financial Leasing Cooperation Framework Agreement
with a total financing amount of not more than 5 billion yuan. The above matters were reviewed and approved by
the fifth meeting of the ninth board of directors of the Company and approved by the fourth extraordinary general
meeting of shareholders in 2018.
(7) In order to promote the construction of the Bohe coal power integration project and ensure the capital demand
for the protective resumption of the Bohe Power Plant project Guangdong Yudean Bohe Coal Power Co. Ltd. a
wholly-owned subsidiary of the Company has increased its capital and shares. The Company and Guangdong
Energy Group Co. Ltd. have increased their capital to Bohe Company according to the target equity ratio of 67%:
33% with a total capital increase of 3.98 billion yuan. The capital increase price is determined on the basis of the
net assets evaluation value of Bohe Company recorded and approved by the competent authority. The above
matters were reviewed and approved by the second communication meeting of the ninth board of directors in
2018 and approved by the fourth extraordinary general meeting of shareholders in 2018.
(8) According to the Implementation Opinions of the General Office of Guangdong Provincial People's
Government on Promoting the Separation and Transfer of "Three Supplies and Property Management " in the
Staff Family Areas of Provincial State-owned Enterprises (YFB [2016] No.102) the power supply water supply
and property management in the staff family areas of Zhanjiang Electric Power Co. Ltd. controlled by the
Company were separately transferred to Zhanjiang Power Supply Bureau of Guangdong Power Grid Co. Ltd.
Zhanjiang Water Investment Group Co. Ltd. and Guangdong Yudean Real Estate Investment Co. Ltd. which was
reviewed and approved by the sixth meeting of the ninth Board of Directors of the Company.
(9) According to the actual needs of production Guangdong Shaoguan Yuejiang Power Generation Co. Ltd. a
controlling subsidiary of the Company accepted Shaoguan Power Plant's land some buildings and machinery and
equipment at a price not higher than the evaluated price of 167.736 million yuan. The final accepted price is
subject to the asset evaluation results filed in accordance with relevant regulations and approved by the sixth
meeting of the ninth Board of Directors of the Company.
(10) In order to optimize the asset structure of Maoming Zhenneng Thermal Power Co. Ltd. and ensure the
continuity of operation the Company's controlling subsidiary Zhenneng Co. Ltd. absorbed and merged Maoming
Power Plant by exchanging its own equity for the entire equity of Maoming Thermal Power Co. Ltd. (hereinafter
referred to as "Maoming Power Plant") and the shareholder of Maoming Power Plant. The above matters have
been reviewed and approved by the sixth meeting of the ninth Board of Directors of the Company.Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
Announcement on Related Transactions with Guangdong Yudean Property
Insurance Captive Co. Ltd . Signing of the Insurance Cooperation Framework
Agreement
January 132018 http//www.cninfo.com.cn.
Announcement on Related Transaction with Guangdong Yudean Group Co. Ltd.
Signing of the Energy Entrusting trusteeship Agreement
January 132018 http//www.cninfo.com.cn.
Estimates announcement of the Daily Related Party Transactions of 2018 March 242018 http//www.cninfo.com.cn.
Announcement on the related party Transactions of Guangdong Electric Power
Development Co. Ltd. with Guangdong Yudean Finance Co. Ltd.
April 282018 http//www.cninfo.com.cn.
Announcement on Related Party Transactions to Add Capital to Guangdong
Yudean Property Insurance Captive Co. Ltd.
April 282018 http//www.cninfo.com.cn.
Announcement on the related Transactions Concerning Conclusion of Financing
Lease Cooperation Framework Agreement with Guangdong Yudean Financing
Leasing Co. Ltd.
August 312018 http//www.cninfo.com.cn.
Announcement of Resolutions of the Second Meeting of the Ninth Board of
Directors by Correspondence of 2019
September 202018 http//www.cninfo.com.cn.
Announcement on Related Transactions of Guangdong Yudean Bohe Coal &
Electricity Co. Ltd.
September 202018 http//www.cninfo.com.cn.Announcement on Related Transactions of Guangdong Shaoguan Yuejiang
Power Generation Co. Ltd. Acquisition of partial assets of Shaoguan Power Plant
October 312018 http//www.cninfo.com.cn.
Announcement of related party transactions of Maoming Zhenneng Thermal
Power Co. Ltd. to merger Maoming Thermal Power Plant Co. Ltd.October 312018 http//www.cninfo.com.cn.XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship contract and lease
(1) Trusteeship
√ Applicable □Not applicable
Note
According to the instructions of Yudean Group on undertaking to perform related matters in order to avoid
horizontal competition and fulfill the commitments of related horizontal competition the Company and Yudean
Group have signed the Equity Trust Agreement which entrusts the rights of shareholders of the Company within
the trust scope of Yudean Group to the Company except for the rights of ownership income and disposition. The
expected trust fee is 2.45 million/year. The complete report is available as Announcement No.2018-04 with China
Securities JournalSecurities Time and at www.cninfo.com.cn dated January 132018.Project that bring profit and losses to the comapny of more than 10% of the company's total profit in the reporting
period.
□Applicable √ Not applicable
Nil
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
√Applicable □ Not applicable
Note
As a lessee the Company rented houses and billboards from Yudean Real Estate Company and the rental fee
incurred this year was RMB 8921732;
As a lessor the company leased the houses to Yudean Property Company and Yudean Shipping Company. The
rental income for this year was confirmed to be RMB 231077;
The parent company of the Company as a leassor leases the houses and parking spaces to units and individuals
such as Guangdong Electric Power Communication and Information Company and Guangdong Electric Power
Dispatching Center. The rental income for this year was confirmed to be RMB 3367122.
Project which generates profit or loss reaching over 10% of total profits of the Company during the Reporting
Period
□ Applicable √ Not applicable
There were no leases with a 10% or greater impact on the Company’s gross profit in the Reporting Period..Guarantees
√Applicable □ Not applicable
（1）Guarantees
In RMB10000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Name of the Company
Relevant
disclosure
date/No. of
the
guaranteed
amount
Amount of
Guarantee
Date of
happening
(Date of
signing
agreement)
Actual
mount of
guarantee
Guarantee type
Guarantee
term
Complete
implemen
tation or
not
Guarantee
for
associated
parties (Yes
or no)
Yunnan Baoshan
Binlangjiang
Hydroelectricity
Development Co. Ltd.
May 242007 4350
December
192007
2030
Guaranteeing of
joint liabilities.
15 years No No
Yunnan Baoshan
Binlangjiang
Hydroelectricity
Development Co. Ltd.
December
192007
4350
November
302007
319
Guaranteeing of
joint liabilities.
15 years No No
Yunnan Baoshan
Binlangjiang
Hydroelectricity
Development Co. Ltd.
May 272009 9367 June 222009 5307
Guaranteeing of
joint liabilities.
18 years No No
Yunnan Baoshan
Binlangjiang
Hydroelectricity
Development Co. Ltd.
May 272009 7250 May 272009 2175
Guaranteeing of
joint liabilities.
14years No No
Total amount of approved external
guarantee in the report period(A1)
0
Total actually amount of
external guarantee in the
report period(A2)
-2436
Total amount of approved external
guarantee at the end of the report
period(A3)
190835
Total actually amount of
external guarantee at the end
of the report period(A4)
9831
Guarantee of the company for its subsidiaries
Name of the company
guaranteed
Related
announceme
nt date and
no.
Amount
of
guarantee
Date of
happening(dat
e of signing
agreement)
Actually
guarantee
amount
Guarantee type
Guarantee
term
Complete
implemen
tation or
not
Guarantee
for related
party(yes or
no)
Zhanjiang Wind
Power Generation Co.Ltd.
April
292009
18571.7
October
92010
7479.85
Guaranteeing of
joint liabilities.
18 years No No
Guangdong Shaoguan
Yuejiang Power
Generation Co. Ltd.November
162013
9000
January
282014
2430
Guaranteeing of
joint liabilities.
7 years No No
Guangdong Shaoguan
Yuejiang Power
Generation Co. Ltd.November
162013
8100
January
292014
1530
Guaranteeing of
joint liabilities.
7 years No No
Total of guarantee for subsidiaries 0 Total of actual guarantee for -4598.97
approved in the period(B1) subsidiaries in the period (B2)
Total of guarantee for subsidiaries
approved at period-end(B3)
141536
Total of actual guarantee for
subsidiaries at period-end(B4)
11439.85
Guarantee of the subsidiaries for the controlling subsidiaries
Name of the Company
guaranteed
Relevant
disclosure
date/No. of
the
guaranteed
amount
Amount of
guarantee
Date of
happening (Date
osigning
agreement)
Actual mount
of guarantee
Guarantee
type
Guarantee
term
Complete
implemen
tation or
not
Guarantee
for
associated
parties (Yes
or no)
The Company’s total guarantee(i.e. total of the first three main items)
Total guarantee quota approved in
the reporting period（A1+B1+C1）
0
Total amount of guarantee
actually incurred in the
reporting period
（A2+B2+C2）
-7034.97
Total guarantee quota already
approved at the end of the
reporting period（A3+B3+C3）
332371
Total balance of the actual
guarantee at the end of the
reporting period
（A4+B4+C4）
21270.85
The proportion of the total amount of actually guarantee in the netassets of the Company (that is A4+B4+C4）%
0.88%
Including：
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed
70% directly or indirectly（E）
13791
Total guarantee Amount of the abovementioned guarantees
（D+E+F）
13791
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... Other significant contract
□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.XVIII.Social responsibilities
1. Information of performance of social responsibilities
For details please see the Social Responsibility Report disclosed by the company on the same day.
http://www.cninfo.com.cn
2.Overview of the annual targeted poverty alleviation
(1)Precise poverty plan
The Company will in depth implement the spirits of the Central work Conference on Poverty Alleviation and the
Development and General Secretary Xi Jinping's series of important speeches on poverty alleviation and the
development and in accordance with the Guangdong Provincial people's Government's "Opinions on the
implementation of Three years Strongly Tackling Difficulties on Precision Poverty Alleviation and Precision
Poverty Reduction in the New Time" and the overall plan and arrangement of Guangdong Province's 2016-2018
of new time of "Precision Poverty Alleviation and Precision Poverty Reduction" by adhering the concept of
innovation coordination green open and shared development the Company will strengthen the awareness of the
overall situation and the sense of responsibility of “The Rich fist leads latter and realize the common prosperity”
fully utilize the advantages carry out the measures of precision poverty alleviation to the village-under-aid
effectively enhance the local “vitality-making” function focus on boosting the village’s collective economic
strength developing the environment and society and people’s livelihood thus to increase the income of
poverty-alleviation objects so as to ensure the accomplishment of various project goals and tasks.
1. Soundly do the work of the poverty alleviation by industry development. Formulate the characteristic industry
development for the village-under-aid implement the “one village one product” industry promotion action tap
into the resources advantages precisely select the dominant industry and the dominant products support the
construction of characteristic agricultural bases with high participation of poverty households support the large
agricultural households and professional cooperatives small and micro enterprises and so forth agricultural
operation bodies to speed up the development. Explore the “Internet + Precision Poverty Alleviation” model
strengthen the training of rural E-commerce merchants in poor villages and encourage farmers to open online
stores for self-development.
2. Explore the poverty alleviation by shares. Promote the income-increase mode of poor village collective
economy allow the financial special poverty alleviation funds and other agricultural-related funds to invest in
facilities such as agriculture farming industrial parks hydropower rural tourism and so forth without changing
their use purposes and the resulting asset income can be converted to shares quantization to poor villages and
poor households. Cooperate with the local to explore and promote the rights confirmation of land management
with accordingly converting to shares guide poverty-stricken households especially those who are incapable of
working to voluntarily transfer the land management rights according to law and use assets such as land
agricultural facilities and poverty alleviation funds to price to convert into shares gaining the operating income
according to shares.
3. Cooperation in training and employment. Oriented towards enhancing the ability of the poor to get employment
assist to carry out the all kinds of policy training promote the relevant vocational and technical colleges to recruit
children from poor families thus to enable them to achieve skills to get out of poverty.
4. Improve the infrastructure. Cooperate with the local to improve the traffic conditions and development
environment in the village-under-aid; support and help key villages-under-aid of the safe drinking water projects;
improve farmland water conservancy facilities; improve sewage facilities; improve the garbage collection and
treatment and the cleaning system; improve village cultural and leisure activities public toilets landscaping and
greening and other facilities; ensure that the relevant indicators meet the provincial standards.
5. Boost the education culture. In coordination with the local education and cultural departments the Company
will vigorously promote the poverty alleviation through education so that all children in the villages-under-aid can
receive a good education increase the education subsidies for poor families ensure that children from poor
households do not drop out of school due to poverty pay attention to left-behind children and build left-behind
children's service centers.
6. Help to improve the environment. Cooperate with the local to raise funds by multi-channels to help
impoverished households complete the renovation of dilapidated buildings and fully complete the task of assisting
low-income people in housing reconstruction assisting in the improvement of domestic garbage disposal sewage
treatment public toilets and greening and beautification of villages. We will use the entire village as a platform to
accelerate the improvement of production and living conditions of poor villages and steadily promote the
construction of beautiful livable villages to realize the new appearance of the old villages.
7. Consolidate the grassroots foundation. Cooperate with the local people to adhere to the Party building and
poverty alleviation both at the same time with the party building to help the poor and with the poverty alleviation
to promote the party building. Organize and hold regular meetings of the "two committees" meetings of the
villages to study the work of aiding the poor; the assigned cadres should assist the "two committees of the village"
to do a good job in organizing the masses serving the masses uniting the masses and enhancing the ability of the
cadres of the "two committees" of the poor villages to lead the people out of poverty and run to health; It’s
necessary to constantly strengthen the development consciousness market awareness teaching ideas teaching
methods and teaching experience of cadres at the grass-root level mobilizing the grass-root level cadresstrengthen the grass-root organizations muster up the drive to fight against poverty and build up “Thenever-leaving Task Force on Poverty Alleviation” thus to lay the foundation for the sustainable and healthy
development of poor villages.
8. Lead multiple parties to participate in. Guide industries enterprises social organizations and individuals to
participate in poverty alleviation and encourage companies to actively undertake social responsibilities fully
stimulate the market's vitality and help villages to invest in industries develop training skills absorb employment
and help the poor with donated money through various forms such as resource development and joint construction
of villages and enterprises.
9. Strengthen the publicity for poverty alleviation. Adhere to the guidance of public opinion comprehensivelypublicize and accurately interpret the decision-making and deployment of “Precision poverty alleviation andPrecision poverty reduction” strengthen the ideological education and guidance and strengthen the cadres and the
masses' centripetal force and cohesion in poverty alleviation work and the development work. Guide the villagers
to change the obsolete customs and habits stimulate the impoverished people to work hard and develop good
enthusiasm and create a positive atmosphere for self-reliance hard-working and getting rid of poverty and
becoming better off.
(2)Precise poverty alleviation
During the reporting period the company conscientiously implemented the Guangdong Province's “PrecisionPoverty Alleviation and Precision Poverty Reduction in Three Years of Strongly Tackling Difficulties” program
and actively organized manpower material and financial resources for poverty alleviation. The subordinate
companies namely the Yuejiang Company Red Bay Company Zhenneng Company Zhanjiang Company Dapu
Company Zhanjiang Wind Power Company actively carried out the precision poverty alleviation work.
.I Counterpart assistance of Yuejiang Company on Mi Xiashui village Quan’an Town Nan Xiong City
Mixiashui Village plans to relieve 13 households and 42 people from poverty in 2018 including 4 households and
5 people under social security subsidy 6 households and 26 people off poverty by farming and industry 3
households and 11 people off povery by employment. In three years 39 households and 98 people in relative
poverty will all be relieved from poverty.(I) Implementation of industrial support
Implement 2018 Support Measures to Guide Poor Households with Labor Ability to Develop Production Projects
in Mixiashui Village Quan'an Town Nanxiong City fullly utilize industrial development platform of Mixiashui
Village's Zhongzhi specialized cooperatives for peasant cropping-breeding mobilize growers (poor and non-poor
peasants) to develop high-quality rice leading industries support Shiwa ecological characteristic aquaculture
industry and participate in the "One Village One Product" passion fruit planting.
1. Implement support for high quality rice leading industry. Implement the Support Plan for Mixiashui Village
Quan'an Town Nanxiong City to Participate in Leading Industry of High-quality Rice Planting guide growers
(poor and non-poor peasants) to join cooperatives promote the model of " Company+Cooperatives+Growers"
and implement order agriculture and planting incentives. Fulfill the high-quality rice purchase agreement signed
between Zhongzhi Cooperative and Nanxiong Xiangyi Industry and Trade Co. Ltd. Through the cooperative's
unified external sales the high-quality rice sales market is opened up the market bargaining power is improved
and the income is increased. A total of 30000 yuan has been invested to reward cooperative member growers for
developing high-quality rice in the sales process which has driven 16 poor and non-poor growers to develop
about 300 mu land for high-quality rice cultivation.
2. Implement support for quasipaa spinosa aquaculture with ecological characteristics . Implement the Support
Plan for the Industry Development of Quasipaa Spinosa Aquaculture with Ecological Characteristics in Mixiashui
Village Quan'an Town Nanxiong City and adopt the measure of guiding poor households to engage in labor and
work and helping on the building materials by the help units. It invests about 30000 yuan to support poor
households Zhong Liangmin to build a quasipaa spinosa breeding farm and it also uses Zhongzhi Cooperative as
a platform and invests about 13000 yuan to purchase 130 breeding frogs. The cooperative is entitled to the
ownership and 16 poor households with labor ability are entitled to the right of return in proportion. With the
centralized foster care and custody mode the frogs are centrally managed by the poor households Zhong
Liangmin and bred by the 16 poor households with labor ability who are entitled to the dividend income every
year.
3. Implement the policy supporting measure of "Award instead of compensation". Implement the supporting
measures in conjunction with "Award instead of compensation" based on the 2018 Support Measures to Guide
Poor Households with Labor Ability to Develop Production Projects in Mixiashui Village Quan'an Town
Nanxiong City. Rice planting is subsidized by 2 packs of formula fertilizer per mu peanut planting is subsidized
by 1 pack of formula fertilizer per mu live pigs are subsidized by 3 packs of feed per each and poultry such as
chickens ducks and geese are subsidized by 1 2.5 kg of feed per each. The project has invested 138916 yuan. It
supports poor households to develop the breeding of 180 live pigs and 1584 poultries and the planting of 98.5 mu
rice and 20 mu peanut. Poor households have achieved remarkable results in increasing agricultural income.
4. Actively participate in the industry support project of passion fruit planting base of Nanxiong Quan'an
Economic and Trade Development Corporation to drive poor households to plant passion fruit. Nanxiong Quan'an
Economic and Trade Development Corporation has built a demonstration base of passion fruit cultivation in
Mixiashui Village on more than 260 mu of land within Mixiashui Village. According to the number of poor
households in Mixiashui Village contiguous land (according to the standard of 1 mu/household) shall be centrally
designated within the scope of the demonstration base as an area for poor households with labor ability to plant
passion fruit. Currently 10 poor households have voluntarily claimed the planting area (mu) for poor households.The support cost is 84227 yuan and the head office is responsible for underwriting passion fruit which can
increase 8000 yuan/household for poor households in the first year.(II) Implement employment and "three guarantees"
1. Continue to carry out labor transfer employment and entrepreneurship training and constantly enhance the
employment skills of poor households. It helps 9 poor households to work in Pearl River Delta and Nanxiong
urban areas to increase their income and 2 poor households to find jobs in village public welfare posts.
2. Fully implement the "three guarantees" policy. Firstly carry out the renovation of dilapidated buildings. In 2018
17 dilapidated buildings are renovated of which 10 are demolished and rebuilt and 7 are repaired. Secondly
implement the education guarantee. There are 24 students from 18 households in 2018 who established cards for
archives with an enrollment rate of 100%. Thirdly achieve full coverage for medical insurance. It fully
implements the medical insurance policy and subsidize 98 people from 39 poor households to purchase urban and
rural medical insurance.
3. Well ensure people's livelihood. Implement activities of sending warmth and condolences to poor households.
On February 10 2018 the two poverty alleviation units jointly visited poor households and the village committee
in Mixiashui Village with a total investment of 41500 yuan. The leaders of the municipal government office and
Shaoguan power plant attach great importance to the targeted poverty alleviation work full implementation of the
working mechanism of pairing for support and coordinate and solve difficult problems on site for multiple times.
In 2018 leaders of Shaoguan Power Plant led 12 people to the villages to guide the support work in the villages
helping to solve the difficulties encountered in the help work and effectively promoting the development of the
help work.
(3) Information on infrastructure projects
1. Accelerate the construction of farmland and water conservancy projects. Farmland and water conservancy
project: Accelerate the construction of high-standard farmland and complete the construction of 1622 mu of
high-standard farmland in an all-round way. Drinking water safety project: the design work has been completed
and it will be included in the construction plan and construction funds will be arranged.
2. Accelerate the construction of the village road hardening project and complete the 10-kilometer village road
hardening project in an all-round way.
3. Accelerate the construction of public service projects. The construction of Health Station and Home Care Public
Service Center of Mixiashui Village is completed.(IV) Promote the construction of a new socialist countryside
1. Establish the villagers' self-government council of villagers' group (natural village) to exercise the autonomous
functions for public affairs inside the village and outside the households; Improve the public service capabilities
of administrative village expand public services other than government services and provide public services such
as e-commerce platforms for villagers.
2. Accelerate the construction of clean villages and build the 9 villages namely Shangmen Longjiangkeng
Chengsi Liaowu Yaowu Liuwu Shigang Shijiaowan and Rongshuxia into clean villages. The construction of
new villages in Shijiaowan and Rongshuxia villages has progressed steadily and the villages look brand-new.II. Counterpart assistance of Red Bay Company on Outian Village Luoxi Town Luhe County
On June 1 2018 the OCT Luoxigu Rural Tourism Project took a trial run. Under the correct leadership of the
county party committee and county government Outian village finally embarks on the road of grass-roots party
building+enterprise+poverty alleviation+environment. Here is with blooming flowers green grass even greener
water and mountains. People here can make money in front of their homes. These cannot be achieved without the
guidance of Party building.(I) Party branch conducts carefull organization and thorough deployment to strengthen grass-roots party building
and grass-roots management
Firstly strictly implement the "three meetings and one lesson" system to ensure the normal life of the Party
organization. Through the formulation of the "three meetings and one lesson" plan and the activity plan for the
theme party day the Party organization's activities are implemented making rural Party members clear of their
identities and their obligations and enhance the cohesion of the Party organization. Meanwhile ordinary Party
members can also raise their awareness ideologically and keep up with the new situation in the new era. While the
Party branch also enables the Party members and the masses to understand the direction deployment problems
and difficulties of the work in the village through the three meetings and one lesson which is conducive to
brainstorming and joint solution.Secondly strictly implement the publicity of party affairs and village affairs. Important matters such as the
development of party members poverty relief poverty alleviation and new rural construction are made public
which is conducive to the publicity of government affairs the promotion of work and the supervision from the
masses.Thirdly strictly enforce the party member recruitment procedures. Party members should be recruited in strict
accordance with the prescribed procedures detailed understanding of applicants should be strengthened and
serious guidance should be given in standardizing procedures to ensure high-quality recruitment of Party
members.
Fourthly strengthen the construction of Party member activity sites and create a good platform for Party member
activities. On the first floor of the village committee office building a Party member activity room is built
according to local conditions which standardizes the Party building work ledger creates a strong Party building
atmosphere and facilitates the participation of elderly and sick party members. OCT Luoxigu and OCT jointly set
up a workshop for new era peasants to further extend the learning and education of Party members to the peasants.Meanwhile the learning and education of Party members are further enriched by combining rural tourism
targeted poverty alleviation agricultural technology and other topics.
Fifthly implement the activities of "declaring identity making commitments and implementing them" and
actively guide the performance of the pioneer and exemplary role of Party members. Since last year members of
our village branch have been wearing party badges and the image of "Party member households" has been deeply
rooted. The commitment column chart is made 10 responsibility posts and areas for Party members are set up
and Party members' identity awareness self-determination awareness and pioneering awareness in new rural
construction targeted poverty alleviation learning and education disaster relief and resumption of production.(II) Strengthen the construction of grassroots party organizations and actively carry out targeted poverty
alleviation work
Since the poverty alleviation team was stationed in the village in May 2016 the Party branch of Outian Village
has held multiple meetings for clarifying the responsibility targets and for full deployment and it has actively
carried out the identification of poor households with 60 poor households and 260 poor people being identified.Starting from the actual work the "one file for each household" system has been set up and the poverty
alleviation program of one family and one policy has been formulated. In combination with the study and
education for "two studies and one action" Party members are promoted to strengthen their exemplary
consciousness. Pairing help for party members is developed for the leading role the Party members in enrichment
and to help the Party members become a powerful driving force for household support and targeted poverty
alleviation. A plan to relieve poor Party members from poverty s developed the Party members are vigorously
supported in setting up projects to lead enrichment the support for Party members to lead enrichment and lead
the masses to get rich together in terms of projects funds technology and information is increased and the Party
members are encouraged and supported to develop characteristic industries so as to effectively form a strong
demonstration radiation effect.(III) Strengthen the sense of responsibility and mission of ensuring the Party's construction and promoting poverty
alleviation with solid work and advancd plan and actively push forward the construction of rural projects
The Party branch and the poverty alleviation team help Outian Village to set up Outian Business Development Co.Ltd. organize poor households to develop characteristic industries plant a large number of sweet potatoes and
peanuts and vigorously develop the bee breeding and sign sales contracts with poor households to ensure that the
due income of poor households. The investment in Xinhe Industrial Park Targeted Poverty Alleviation Industrial
Park Project is made. The training programs for poor people's labor skills and transfer employment have been
strenthened according to the needs of poor people the trainings on agricultural applicable technology transfer
employment and related content are organized respectively for poor households which has achieved good results.The construction of village infrastructure has been actively carried out to build cultural little square and
supporting facilities for Shishitang and Outianwei natural villages build and install lighting equipment for hard
roads in front of Outian Primary School and build landscaping and greening facilities for villages. Outian Village
Cultural Activity Center is also under construction and will be put into use in December.
(IV) Strengthen the task of grassroots Party building in the village determine the development of rural tourism
projects and drive poor households for enrichment through labor.Outian Party branch has explored many ways for poverty alleviation. It planned to breed chickens ducks sheep
and cattle in large quantities but didn't implement it for its risks and damages to the environment. The branch
made a decisive decision to explore a green tourism project. Enterprise+poverty alleviation+environment is the
most feasible poverty alleviation mode. Under the proposal and leadership of the branch a rural tourism project
leading group is established headed by the team leader to comprehensively coordinate the project introduction
site selection coordination and active contact with relevant departments of OCT and county. Luo Hongxi the
branch secretary led the branch committee to well ensure the propaganda and the ideological work of the masses.He urged the village party members to lead by example and solve the problem of land use for tourism projects.Through the joint efforts of party members and cadres in June 2017 Shenzhen OCT Eastern Group officially
settled in Outian Village and launched the OCT Luoxigu rural tourism project. Through the development of the
rural tourism industry the local people's employment is solved so that the people can earn money locally and the
poor households could be driven out of poverty and become rich.(V) The "Enterprise+Poverty Alleviation+Environment" rural tourism project in OCT Luoxigu is a full
manifestation of the core role of grass-roots party organizations
There are about 500 villagers in OUtian Kengzili Village with less than half an acre of arable land per capita. The
poor account for 15% of the total population in the village. In these years it was with weeds everywhere
shrinking traditional agriculture while other industries lacking young and middle-aged labor force flowing out
and remaining villagers struggling on the poverty line. The peasants and women here had made almost no money
for more than 40 years and they could hardly feed themselves by the traditional farming economy. The
introduction of excellent supporting enterprises from the Overseas Chinese Town in the eastern part of Shenzhen
has helped peasants convert their land into shares according to size and grade. The village is turned into a scenic
spot which drives peasants to increase their income and become rich and realize the transformation of resources
into assets capital into shares and peasants into shareholders. The villagers are both shareholders and employees
and their enthusiasm is aroused. In less than a year the deserted residential buildings were transformed into
hakka-featured residential houses and farming villages into agricultural cultural centers. The village's power
supply was increased and signals for internet television and communication were connected. The number of
beekeepers has increased from two to five and the income has increased several times. Currently Outian
Bookstore Nongli Shop Qingmei Bar Leicha Guild Hall and Handicraft Workshop extend from the village
entrance to the valley introducing tourists gradually into this fresh and modern Peach Garden which is full of
flowers green water and green hills singing birds and flora fragrance and heaven-like changes. The village has
changed into a beautiful place. Young laborers who once left the country have returned to their hometown one
after another in search of employment and wealth opportunities at home. After the OCT Luoxigu Project in is
put into operation it can drive more residential house or farmhouse development absorb more people for local
employment and help more people get rid of poverty and become rich.III. Counterpart assistance of Zhenneng Company on Xinpo Village Shalang Town Dianbai District
Maoming City
According to the Maoming municipal party committee's arrangement on targeted poverty alleviation in the new
period the Maoming municipal people's congress standing committee office Maoming Zheneng Thermal Power
Co. Ltd. and Guangdong Development Bank Maoming Branch are linked to assist Xinbei Village Shalang Town
Dianbai District with a poverty alleviation team dispatched to the village. Thanks to the joint efforts of the three
supporting units the resident team and the village cadres have worked together to mobilize the broad masses and
carry out solid work. New progress and new achievements have been made in all aspects of Xinbei Village's work.(I) The leaders attach great importance to carefully guide and work together to tackle targeted poverty alleviation
In the past three years leaders at all levels have attached great importance to it. Li Hongjun secretary of the
municipal party committee and director of the Municipal People's Congress Standing Committee and Chen
Xiaofeng secretary of the municipal party committee and Dianbai District Party Committee led teams to the
village to investigate and inspect the targeted poverty alleviation work. The Standing Committee of the Municipal
People's Congress has held several meetings of directors to study the targeted poverty alleviation work. The three
supporting units have held joint meetings from time to time to study and solve major problems in poverty
alleviation work and decide on major issues. Liang Luoyue executive deputy director of the Standing Committee
of the Municipal People's Congress has attached great importance to the poverty alleviation work in Xinbei
visited Xinbei Village many times for investigation and guidance to put forward opinions study and solve
problems in time and promote the work; Lin Zhenguang deputy director in charge has led the team many times to
the village for investigation and guidance coordinating relevant units to give financial and policy support and
providing front-line supervision to promote targeted poverty alleviation work; Other leaders and cadres of the
Municipal People's Congress Standing Committee often pay their condolences to the families who have been
linked for the supporting; Main leaders and those responsible for the support work of Maoming Zhenneng
Thermal Power Co. Ltd. and Guangdong Development Bank Maoming Branch also have visited the village for
many times for investigation and offering condolences; The town's main leaders Luo Liang Xie Jingji and Ou
Shiji have visited the village many times for investigation and guidance studied and solved the specific problems
and practical difficulties encountered in the targeted poverty alleviation work. Meanwhile in order to make the
targeted poverty alleviation policy widely known in the new era the villagers in Xinbei Village are expected to be
familiar with the targed poverty alleviation policy and actively participate in and support the poverty alleviation
work by banners publicity leaflets party members' meetings and villagers' representative meetings so as to
widely publicize the targeted poverty alleviation policy and interprete the targeted poverty alleviation policy.(II) Entry into the village and household for careful investigation to ensure accurate establishment of cards for
archives
Targeted poverty alleviation is an important political task. The first step is to accurately identify poor households
which is also the most foundamental work. The poverty alleviation team in the village has firmly grasped this key
and carried out the accurate identification work. Firstly study hard and get familiar with the working methods of
investigation as soon as possible. After entering and connecting with the village at the end of April 2016 it has
earnestly studied the relevant documents of the central provincial and municipal committees on targeted poverty
alleviation and poverty relief in the new era deeply understood the spirit of the documents defined the work
objectives clarified the work ideas quickly became familiar with the poverty alleviation work process the criteria
for poor households and the work methods for accurately identifying poor households. Secondly enter the village
as soon as possible and carry out investigations in an orderly manner. In the middle of May it entered the village
and visited households together with the cadres of the village's two committees carried out
household-by-household investigations. In strict accordance with the criteria for poor households and the
identification method of "four-check five-priority six-in seven-out" they focused on checking the household
population labor force source of income housing furniture and household appliances vehicles causes of
poverty etc. to ensure no person or household left and to resolutely keep those who did not meet the criteria off
the targeted poverty alleviation list. Thirdly conduct review as soon as possible ensure its publicity while making
adjustment. In early June in order to ensure the authenticity and reliability of the poor household on-door
inspection a villagers' representative evaluation meeting on targeted poverty alleviation was held in Xinbei
Village for the new era and the situation for each household was introduced and the evaluation was conducted.
After the evaluation the result was be publicized and the newly applied villagers were investigated and verified
again. By the end of August a total of 162 people from 49 poor households in Xinbei Village had been identified
and no complaints had been received from the masses which lays a solid foundation for accurate assistance. By
the end of December of that year after review assistance to 3 households with 8 people are terminated and 1 died
and 153 people from 46 poor households are finally determined. Fourthly to pay close attention to the planning
and ensure the accuracy of the policy implementation. According to the situation of each poor household and the
wishes of the poor households a three-year support plan and an annual support plan are tailor-made for them so
as to ensure that the measures formulated are scientific and reasonable and that after the support each poor
household can achieve "two relieves from worries and three guarantees". Fifthly establish files in a timely manner
and manage the poor households dynamically. In strict accordance with the requirements of establishment of cards
for archives the published information of poor households shall be accurately entered into the "New Period
Targeted Poverty Alleviation Information Platform" the system data shall be updated regularly and the
information of changes of poor households shall be entered in a timely manner. Meanwhile close attention shall
be paid to the "one file for each family" of poor households and various paper documents and dynamic
management of poor households shall be implemented.(III) Steady and accurate execution for full implementation of targeted poverty alleviation measures
1. Support of income-increasing projects is in place. Adhere to the principle of "different method for each
household" solicit opinions from poor households extensively and implement income-increasing projects
combining "short-term medium-term and long-term" that is short-term project is family vegetable basket project
medium-term project is leek industrial park project and long-term project is photovoltaic power generation
project.
Firstly implement the family vegetable basket project. It is mainly to mobilize and assist poor households to carry
out decentralized planting and breeding. The supporting units set up a subsidy fund to provide seedlings and
means of production and to assist them in selling agricultural products. In 2017 the support units supported more
than 60000 yuan helped 6 households to build standard chicken houses distributed 1760 Xinyi Huaixiang baby
chicks and feed to 16 poor households and in 2018 the supporting units supported 30000 yuan provided 1000
baby chicks to 12 poor households meanwhile conducted technical training signed a guaranteed recovery
agreement and assisted poor households in selling the product chickens thus increasing the income of poor
households by more than 80000 yuan; In addition poor households have raised cattle pigs vegetables and rice
according to their own conditions thus increasing their income through active production development.Secondly construct leek industrial park. The model of "company+cooperative+poor households" is adopted. The
local agricultural planting company and the open source planting professional cooperative (composed of poor
households with labor force referred to as "open source cooperative") in Dianbai District of Maoming City will
jointly invest a total of 500000 yuan from the special financial funds for poor households and the support funds of
supporting units to build a 60-mu leek planting base. The company will be responsible for the subsequent
investment with a cooperation period of 7 years (2017-2023) and an annual fixed dividend of 132000 yuan in
the first 5 years and 42000 yuan in the following 2 years. The dividend in 2017 is 600 yuan/person. At the end of
2018 transformation and upgrading are carried out and guava is initially replanted to further alleviate poverty and
increase income.Thirdly build photovoltaic power stations for poverty alleviation. The model of "company+cooperative+poor
households" is adopted. The photovoltaic company and open source cooperative cooperate to invest the financial
co-ordination funds of poor households into shares. A 200KW photovoltaic power station for poverty alleviation
will be built on the roof of Xinbei Village committee office the roof of Xinbei Primary School teaching building
and the back mountain. Both parties invest 1 million yuan each and the cooperation period is 20 years. The project
started construction in late October 2017 and has been fully connected to the grid for normal power generation by
July 20 2018. A fixed dividend pattern is adopted with 160000 yuan per year from 2017 to 2022 and 100000
yuan per year from 2023 to 2037. 600 yuan was distributed to poor households with labor force in 2018 and 1000
yuan is expected to be distributed to poor households with labor force in 2019 to 2020. From 2021 onwards the
village committee will handle it according to the targeted poverty alleviation policy at that time.Moreover in 2018 509.63 million yuan of overall financial fund for poor households was invested in the
construction of distributed photovoltaic power generation project by Dianbai Water Investment Group. The
cooperation period is 20 years and the annual fixed dividend model is adopted. Regardless of the profit and loss of
the project 7% of the total investment (35674.1 yuan) was distributed to the village committee and in the first
five years (2019-2023) it will be distributed to poor households with labor force (122 people from 29 households).Since 2024 (the next 15 years) when the number of poor people is obviously decreased it will be subject to the
poverty alleviation policy. The village committee will propose a plan to change the dividend which will be
submitted to the villager representative meeting for approval and implemented after being submitted to the
people's government of Shalang Town for approval.
2. Transfer employment is in place. Actively mobilize poor family members with working ability to work to
increase family income. Currently 50 people have gone out to work or work nearby.
3. Renovation of dilapidated houses is in place. In Xinbei Village 21 poor households have applied for renovation
of dilapidated houses. The stationed team took the initiative to communicate and negotiate with relevant
departments applied for the renovation index convened mobilization meeting for poor households and carried
out renovation of dilapidated houses in strict accordance with the requirements. A total of 20 households were
renovated in 2016-2018. Poor household Lan Zhaotao is included into 2019 construction list.
4. Education subsidies are in place. In 2016 39 students from poor families were helped to apply for educational
subsidies for the 2016-2017 academic year which were implemented in place; In 2017 40 students from poor
families were helped to apply for educational subsidies for the academic year 2017-2018 which were
implemented in place; In November 2018 44 students from poor families were helped to apply for education
subsidy for the 2018-2019 academic year as required. The examination and submission have been completed and
it is expected that the subsidy will be allocated in the near future.
5. Guarantee policies are in place. Assist the social security department to purchase medical insurance for all poor
households to improve the treatment of lowest living security and five guarantees and to truly realize the full
coverage of insurance; Assist poor households suffering from serious illness to apply for medical assistance to
reduce their economic burden; Offer condolences and holiday greetings to poor families before the Spring Festival
July 1 and Mid-Autumn Festival.(IV) Led by Party building with foundation strengthened strive to play the role of a fighting fortress.The head of the village-based task force also serves as the first secretary who can actively well ensure the party
building fully utilize the role of grass-roots party organizations and promote the steady development of various
tasks.
1. Focus on the study and improve quality. Lead all Party members in the Party branch to earnestly study the spirit
of the Party's 19th Congress promote the normalization and institutionalization of "two studies and one action"
learning education lead in teaching Party classes implement the "three meetings and one lesson" system
strengthen ideals and beliefs maintain the advancement of the team and improve the quality of all Party
members.
2. Focus on the team and enhance service. Assist the town party committee in completing the general election of
"two committees" in Xinbei Village and adjust the election of 2 new cadres and add 2 new village cadres as
candidates; Organize the village "two committees" team to carefully study laws and regulations mass work
methods and business knowledge and enhance the team's service ability and level.
3. Focus work style and build prestige. Always pay close attention to the construction of team work style strictly
implement the eight central regulations lead in opposing "four ill styles" implement the financial disclosure of
party and village affairs and eliminate corruption in work especially in the targeted poverty alleviation work so
that the cadres of the "two committees" in the village will have higher prestige among the masses.IV. Counterpart assistance of Zhanjiang Company on Waiyuan Village Nanxing Town Leizhou City
In 2018 under the unified arrangement and leadership of Zhanjiang and Leizhou Poverty Alleviation Offices the
Company earnestly implemented the relevant regulations of provinces cities counties and towns. Under the high
attention and careful guidance of leaders at all levels the poverty alleviation staff worked hard and actively
organized human material and financial resources to invest in the poverty alleviation work: Invested 48000 yuan
to complete the Spring Festival condolences to poor households in 2018; Invested 38000 yuan to support two
poor households (Wang Keze and Wang Guangqiu) to rebuild their dilapidated houses; Helped poor households to
buy chemical fertilizers (with 120000 yuan national financial funds) for agricultural production to improve crop
yields and increase economic income; In view of the fact that there was no basketball court for the students of
Huangpai Primary School of Waiyuan village committee it invested 50000 yuan to build the basketball court for
Huangpai Primary School; Assisted Zhanjiang Meteorological Bureau in purchasing desks for Huangpai
Primary School student; Participate in the "three clean-up three demolition three remediation" activities
organized by Nanxing Town; Completed the reporting of newly added poor households and terminated poor
households; Organized poor households with work ability to invest in Guangdong Yujie Agro-ecological
Development Co. Ltd (with 360000 yuan national financial fund); And completed investment in photovoltaic
power generation projects for poor households (with 1.41 million yuan national financial funds).
V. Counterpart assistance of Dapu Company on Xiamu Village Fenglang Town Dapu County Meizhou
City
In 2018 Taipu Power Generation Company continued to send its first secretary assist Xiamu Village Fenglang
Town dapu county City Meizhou City and carried out the following support work together with Jianghai
Sub-district Office of Haizhu District of Guangzhou City:
1. Solid Party building at the grass-roots level: It invested 44500 yuan in the construction of the activity room for
new members of the village committee purchased a number of office desks and chairs and ensured to display the
publicity column for Party building and system on the wall;
2. It carried out commemorative activities to celebrate the 97th anniversary of the founding of the Party offered
condolences to 15 60-year-old Party members and organized Party members to visit and study in Sanheba
Campaign Memorial Hall a red education base and Beitang Village Xihe Town a demonstration site for new
rural construction;
3. Well ensure the cultural support: The cultural activity room of the Dankeng group was completed in 2018 with
a contract of 250000 yuan (the project is under financial review);
4. 21600 yuan is invested for the Spring Festival condolences of 72 poor households;
5. 485500 yuan is invested in the construction of Xiamu Village Party and Mass Activities Center. The project
covers an area of about 1000 square meters including Party and Mass Activities Square and Cultural Corridor. It
was completed and put into use in December 2018 and is currently being submitted to the Financial Review;
6. As of December 31 2018 through dynamic management 137 poor people from 67 households out of the total
144 people from 70 households in the village have achieved pre-poverty alleviation.
VI. Counterpart assistance of Zhanjiang Wind Power Co. Ltd. on Houhai Village Xinliao Town Xuwen
County
Under the strong leadership of the superior party committee the strong cooperation of the village "two
committees" cadres and the efforts of the stationed team Zhanjiang Wind Power Company continued to carry out
targeted poverty alleviation work in Houhai Village Xinliao Town Xuwen County Zhanjiang City in 2018. It
worked closely with the Second Affiliated Hospital of Guangdong Medical University the SPIC Xuwen Wind
Power Company and other supporting units and actively implemented supporting projects such as asset support
industrial support employment support holiday greetings etc. Through innovative measures such as household
filing dynamic control and one policy for each household the accuracy and comprehensiveness of poverty
alleviation work are effectively improved. As of December 2018 337 people from 90 poor households in Houhai
Village had been relieved from poverty accounting for 91.58% of the original poverty in Houhai Village.
(3)Targeted Poverty Alleviation Result
Index Measurement unit Quantity / Status
I. General situation —— ——
Thereinto： 1.Capital In RMB 10000 497.09
2. Cash supplies In RMB 10000 8.89
3. Ecological protection to poverty alleviation person 739
II.Breakdown Input —— ——
1. Poverty alleviation by industrial development —— ——
Among them: 1.1 Project type of poverty
alleviation by industrial development
——
Agricultural and forestry industry poverty alleviation a;
assets income poverty alleviation
1.2 Number of poverty alleviation projects in
industrial development
a 12
1.3 Investment amount of industrial
development poverty alleviation project
In RMB 10000 266.63
1.4 The number of poverty population who had
been helped to create a file
person 269
2. Poverty alleviation by transfer employment —— ——
Among them: 2.1 Investment amount of
vocational skill training
In RMB 10000 0.27
2.2 Number of people of vocational skill training person 54
2.3 Quantity of employment of poverty
population who had been helped create a file
person 46
3. Poverty alleviation by relocation —— ——
4. Educational poverty alleviation person 0
Among them: 4.1 Investment amount of
subsidizing poverty students
—— ——
4.2 Number of subsidized poverty students In RMB 10000 28.56
4.3 Improving the investment amount for
education in poor areas
person 80
5. Health poverty alleviation In RMB 10000 0.3
Among them: 5.1 Investment amount for
medical and health resources in poor areas
—— ——
6. Ecological protection poverty alleviation In RMB 10000 2.16
7. Guarantee of all the details —— ——
8. Social poverty alleviation —— ——
8.2 Investment amount of fixed-point poverty
alleviation
—— ——
9. Other projects —— ——
Among them: 9.1 Number of project a 9
9.2 Investment amount In RMB 10000 95.61
9.3 Number of poverty population who had been
helped to create a file
person 63
III. Awards (Content and level) —— ——
（4）Subsequent targeted poverty alleviation program
The Company will continue to implement the relevant provincial municipal and county regulations on targeted
poverty alleviation adjust measures to local conditions and explore an accurate path for targeted poverty
alleviation. Firstly it will continue to strengthen the Party's style of work promote the "two committees" in the
villages to strengthen ideological construction and consolidate the results of the "two studies and one action"
learning activities. Secondly it will improve its ability by learning continue to learn the spirit of Comrade Xi
Jinping's series of important speeches the spirit of targeted poverty alleviation documents the relevant business
knowledge of poverty alleviation the ways and means of dealing with the masses and further improve its ability
to solve problems for the masses. Thirdly prioritize the tasks and promote their implementation. All poverty
alleviation working groups will continue to focus on the core of targeted poverty alleviation seize the core work
of poverty alleviation and carry out and implement relevant work in an all-round and coordinated manner. For
poverty alleviation projects and village collective projects that are included in the establishment of cards for
archives the support of relevant departments is actively sought in accordance with the established objectives and
tasks to assist the villages and poor households in implementing poverty alleviation projects and ensure the full
completion of poverty alleviation objectives and tasks in a pragmatic manner.. Information on environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
Yes
Company or
subsidiary
name
Main
pollutant
and specific
pollutant
name
Emission way
Emissi
on port
number
Emission
port
distribution
condition
Emission
concentration
(mg/Nm3)
Implemented pollutant
emission standards
Total
emission
(t)
Verified
total
emission
(t)
Excessive
emission
condition
Shajiao A
power plant
Smoke
Concentrated
emission
through
chimney
2
Within the
factory
1.73
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
22.868
Not
approved
No
Shajiao A
power plant
SO2
Concentrated
emission
through
chimney
2
Within the
factory
15.86
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
230.51
Not
approved
No
Shajiao A
power plant
NOX
Concentrated
emission
through
chimney
2
Within the
factory
27.18
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
381.68
Not
approved
No
Guangdong
Dapu Power
Generation
Co. Ltd.
Smoke
Concentrated
emission
through
chimney
2
Within the
factory
2.24
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
28.891 593 No
Guangdong
Dapu Power
Generation
Co. Ltd.
SO2
Concentrated
emission
through
chimney
2
Within the
factory
10.46
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
134.827 1447 No
Guangdong
Dapu Power
Generation
Co. Ltd.
NOX
Concentrated
emission
through
chimney
2
Within the
factory
27.41
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
353.262 1502 No
Zhanjiang
Zhongyue
Enerty Co.
Ltd.Smoke
Concentrated
emission
through
chimney
2
Within the
factory
1.86
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
35.27 480 No
Zhanjiang
Zhongyue
Enerty Co.
Ltd.
SO2
Concentrated
emission
through
chimney
2
Within the
factory
14.31
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
271.66 1200 No
Zhanjiang
Zhongyue
NOX
Concentrated
emission
2
Within the
factory
27.71 Emission Standard of
Air Pollutants for
525.92 1587 No
Company or
subsidiary
name
Main
pollutant
and specific
pollutant
name
Emission way
Emissi
on port
number
Emission
port
distribution
condition
Emission
concentration
(mg/Nm3)
Implemented pollutant
emission standards
Total
emission
(t)
Verified
total
emission
(t)
Excessive
emission
condition
Enerty Co.
Ltd.through
chimney
Thermal Power Plants
(GB13223-2011)
special emission limit
Guangdong
Shaoguan
Yujiang Power
Generation
Co. Ltd.
Smoke
Concentrated
emission
through
chimney
2
Within the
factory
330MW
unit：9.28；
600MW
unit：1.11
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
76．7 717.78 No
Guangdong
Shaoguan
Yujiang Power
Generation
Co. Ltd.
SO2
Concentrated
emission
through
chimney
2
Within the
factory
330MWUnit
：98.53；
600MWUnit
：14.46
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
858.31 2303.55 No
Guangdong
Shaoguan
Yujiang Power
Generation
Co. Ltd.
NOX
Concentrated
emission
through
chimney
2
Within the
factory
330MWUnit
：116.11；
600MW
Unit：32.46
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
1263.06 2809.07 No
Zhanjiang
Electric Power
Co. Ltd.
Smoke
Concentrated
emission
through
chimney
2
Within the
factory
2
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
47.547 47.55 No
Zhanjiang
Electric Power
Co. Ltd.
SO2
Concentrated
emission
through
chimney
2
Within the
factory
9
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
256.468 256.467 No
Zhanjiang
Electric Power
Co. Ltd.
NOX
Concentrated
emission
through
chimney
2
Within the
factory
27
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
757.107 757.108 No
Guangdong
Yudean Jinghai
Power General
Co. Ltd.
Smoke
Concentrated
emission
through
chimney
2
Within the
factory
Unit 1 #：
2.79；unit 2
#：2.31；unit
3 #：2.72；unit
4#：3.13。
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
152.39 1770 No
Guangdong
Yudean Jinghai
Power General
Co. Ltd.
SO2
Concentrated
emission
through
chimney
2
Within the
factory
Unit 1 #：
14.79；unit 2
#：17.49；unit
3#：13.65；
unit 4 #：
15.22。
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
842.35 6502 No
Guangdong
Yudean Jinghai
Power General
Co. Ltd.
NOX
Concentrated
emission
through
chimney
2
Within the
factory
Unit 1#：
32.98；unit
2#：32.4；unit
3 #：30.55；
unit 4#：35.43
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
1817.07 4687 No
Company or
subsidiary
name
Main
pollutant
and specific
pollutant
name
Emission way
Emissi
on port
number
Emission
port
distribution
condition
Emission
concentration
(mg/Nm3)
Implemented pollutant
emission standards
Total
emission
(t)
Verified
total
emission
(t)
Excessive
emission
condition
Guangdong
Red Bay Power
General Co.Ltd.Smoke
Concentrated
emission
through
chimney
2
Within the
factory
3.34
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
135.5
Not
approved
No
Guangdong
Red Bay Power
General Co.Ltd.
SO2
Concentrated
emission
through
chimney
2
Within the
factory
8.98
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
384.1
Not
approved
No
Guangdong
Red Bay Power
General Co.Ltd.NOX
Concentrated
emission
through
chimney
2
Within the
factory
32.83
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
1368.66
Not
approved
No
Maoming
Zhenneng
thermal power
Co. Ltd.
Smoke
Concentrated
emission
through
chimney
2
Within the
factory
1.92
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
32.13 168.12 No
Maoming
Zhenneng
thermal power
Co. Ltd.
SO2
Concentrated
emission
through
chimney
2
Within the
factory
12.43
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
155.78 385.51 No
Maoming
Zhenneng
thermal power
Co. Ltd.
NOX
Concentrated
emission
through
chimney
2
Within the
factory
30.44
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
528.69 689.58 No
Pinghai Power
plant
Smoke
Concentrated
emission
through
chimney
2
Within the
factory
1.78
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
55.18 700 No
Pinghai Power
plant
SO2
Concentrated
emission
through
chimney
2
Within the
factory
22.60
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
685.08 1750 No
Pinghai Power
plant
NOX
Concentrated
emission
through
chimney
2
Within the
factory
43.52
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
1118.05 3500 No
Guangdong
Guohua
Yudean Power
Generation
Smoke
Concentrated
emission
through
6
Within the
factory
1.8
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
151
Not
approved
No
Company or
subsidiary
name
Main
pollutant
and specific
pollutant
name
Emission way
Emissi
on port
number
Emission
port
distribution
condition
Emission
concentration
(mg/Nm3)
Implemented pollutant
emission standards
Total
emission
(t)
Verified
total
emission
(t)
Excessive
emission
condition
Co. Ltd. chimney special emission limit
Guangdong
Guohua
Yudean Power
Generation
Co. Ltd.
SO2
Concentrated
emission
through
chimney
6
Within the
factory
14.6
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
1230
Not
approved
No
Guangdong
Guohua
Yudean Power
Generation
Co. Ltd.
NOX
Concentrated
emission
through
chimney
6
Within the
factory
30
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
2524
Not
approved
No
Qianwan LNG
Power Plant
NOX
Concentrated
emission
through
chimney
3
Within the
factory
31.65
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
491 1312.5 No
Huizhou
LNG Power
Plant
NOX
Concentrated
emission
through
chimney
5
Within the
factory
34.35
Emission Standard of
Air Pollutants for
Thermal Power Plants
(GB13223-2011)
special emission limit
1008 2033 No
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. At present the
company's subordinate coal-fired units have all completed ultra-low emission transformation work and the
emission concentration of export flue gas pollutants has been greatly reduced on the basis of the original
environmental emission standards reflecting the company's determination to fulfill its social responsibilities and
the responsibility to protect the environment mission.
Conditions of environmental impact assessment and other environmental protection administrative licensing of
construction projects
The company's construction projects that have been approved by government agencies have all undergone
environmental impact assessments and have obtained other necessary environmental protection administrative
licenses.Emergency plan for emergency environmental incidents
Combining with the Environmental Protection Law of the People's Republic of China and the Opinions of the
Ministry of Environmental Protection on Strengthening Environmental Emergency Management Work and other
laws and regulations on the monitoring of environmental risks the company’s subordinate power generation
enterprises have formulated the Emergency Plan for Emergency Environmental Incidents according to their actual
conditions which has standardized and improved the handling of emergent environmental events from the aspects
of environmental accident risk analysis emergency command organization and responsibilities disposal
procedures and disposal measures improved the ability to respond to unexpected environmental events and
ensured that after an outbreak of an environmental incident the company can organize emergency rescue work in
a timely orderly and efficient manner to prevent pollution of the surrounding environment minimize the damage
and social harm caused by the incident maintain social stability and protect public health and property safety.
Environmental self-monitoring program
During the reporting period the company’s subordinate power generation companies organized annual
environmental self-monitoring programs in accordance with the national Administrative Measures on Automatic
Monitoring of Pollution Sources (No. 28 order of State Environmental Protection Administration) and other laws
and regulations and conducted self-monitoring of the environment in accordance with the monitoring program
and announced its own monitoring results in Guangdong Province's key pollution source regulatory information
platform and the national pollution source monitoring information and sharing platform. Both the announced rate
and completion rate had reached 100%.Other environmental information that should be disclosed
No such cases in the reporting period.Other environmental protection related information
No such cases in the reporting period.XIX. Other material events
□Applicable √ Not applicable
No such cases in the reporting period.XX. Material events of subsidiaries
√Applicable □ Not applicable
The company's holding subsidiary Guangdong Yudean Pinghai Power Plant Co. Ltd received the
“Administrative Punishment Decision” issued by the Guangdong Provincial Ocean & Fisheries Bureau onNovember 14 2016 (No. 019-2016 Yuehai Executive Punishment) and the punishment decision “ordered Pinghaito return the illegally occupied sea areas and restore the sea areas to their original state and sentenced 10 times
fines to the use fees of sea areas that shall be imposed within the period of that illegally occupied 16.3947 hectaresamounted to RMB 172144350.00” for that Pinghai Power Plant carried out the site leveling and bank protection
work of Pinghai power plant without approval and did the reclamation of 16.3947 hectares and its behavior
violated the provisions of Article 3 of the Law of the People's Republic of China on the Administration of the Use
of Sea areas. Based on the audited net profit of RMB 3.238 billion attributable to the shareholders of the parent
company in 2015 the amount involved in the above-mentioned administrative penalty affects the net profit
attributable to shareholders of the parent company of about 77.4 million-which accounts for 2.39% of the net
profit of the most recently audited period.Pinghai Power Plant disagreed with the punishment measures of the “Administrative Punishment Decision" andapplied for administrative reconsideration to the People's Government of Guangdong Province on January 16
2017 in accordance with Article 6 of the "Administrative Reconsideration Law of the People's Republic of China".
On June 16 2017 the People's Government of Guangdong Province issued a decision on the administrativereconsideration which stated “According to the provisions of Item 1 of Paragraph 1 of Article 28 of the
Administrative Reconsideration Law of the People's Republic of China the Administrative Punishment Decision
(No. 019-2016 Yuehai Executive Punishment) made by the respondent’s Provincial Department of Ocean and
Fisheries is maintained.” Pinghai Power Plant disagreed with the aforementioned administrative reconsideration
decision and filed an administrative litigation to the Guangzhou Maritime Court on July 18 2017. On December
28 2017 the Guangzhou Maritime Court issued an administrative decision stated “In accordance with theprovisions of Article 69 of the Administrative Procedure Law of the People's Republic of China the decision is asfollows: the claim of the plaintiff Guangdong Huizhou Pinghai Power Plant Co. Ltd was rejected”. Pinghai Power
Plant disagreed with the verdict and lodged an appeal to the Guangdong Provincial Higher People's Court against
the verdict which has not yet been determined. According to the net profit of RMB 937 million attributable to
shareholders of the parent company in the previous year (2016) the amount involved in the above lawsuit affects
the net profit attributable to shareholders of the parent company of approximately RMB 77.4 million which
accounts for approximately 8.26 % of the net profit of the most recently audited period which does not constitute
a major impact on the Company.
As of the disclosure date of this report the above-mentioned administrative punishment and the administrativelitigation matter are still in the process of multi-party communication and coordination. According to the “AssetPurchase Agreement by Share Issuance” signed between Yudean Group and the Company in 2012 Yudean Group
shall compensate the Company for the actual loss caused by the above-said matter in accordance with the result of
the matter.
2. Guangdong Yudean Pinghai Power General Plant Co. Ltd. a controlling subsidiary of the Company received
the Decision on Administrative Punishment (YHDCF [2019] No.042-1) issued by Huidong County Oceanic and
Fishery Bureau on November 13 2018. The act of illegally occupying 1.2813 hectares of sea area by Pinghai
Power Plant to construct a sand barrier violated the provisions of the second paragraph of Article 3 of the Law of
the People's Republic of China on the Use of Sea Areas and the decision was that "It is ordered to return the
illegally occupied sea area restore the sea area to its original state and imposed an administrative penalty of RMB
11531700". According to the Company's audited net profit attributable to the shareholders of the parent company
of 743 million yuan in 2017 the amount of the above administrative penalty affects the net profit attributable to
the shareholders of the parent company of about 5189300 yuan accounting for about 0.7% of the latest audited
net profit. Pinghai Power Plant refused to accept the punishment measures in the Decision on Administrative
Punishment and filed an application for administrative reconsideration with Huidong County People's
Government which has accepted it. According to the Agreement on Issuance of Shares for Asset Purchase signed
between Yudean Group and the Company in 2012 Yudean Group will compensate the Company according to the
results of the above events and the actual losses caused therefrom.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 Proportion
Share
allotment
Bonus
shares
Capitalization
of common
reserve fund
Other Subtotal Quantity Proportion
I. Share with
conditional subscription
1897966823 36.15% 2123 2123 1897968946 36.15%
2. State-owned legal
person shares
1893342621 36.06% 1893342621 36.06%
3.Other domestic shares 4624202 0.09% 2123 2123 4626325 0.09%
Of which：Domestic
legal person shares
4620666 0.09% 4620666 0.09%
Domestic natural person
shares
3536 0 % 2123 2123 5659 0 %
II. Shares with
unconditional
subscription
3352317163 63.85% -2123 -2123 3352315040 63.85%
1.Common shares in
RMB
2553909163 48.64% -2123 -2123 2553907040 48.64%
2.Foreign shares in
domestic market
798408000 15.21% 798408000 15.21%
III. Total of capital
shares
5250283986 100 % 0 0 5250283986 100 %
Reasons for share changed:
√Applicable □ Not applicable
During the reporting period the Company added 2123 shares with limited conditions of sale some of which were
originally held by directors of the company and were converted into special share for senior executive. The total
number of shares of the Company remained unchanged.
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
√ Applicable □ Not applicable
In Shares
Shareholders
Opening shares
restricted
Shares released
in Period
Restricted Shares
Increased In the
Period
Ending shares
restricted
Restricted reasons
Date for
released
Wen Lianhe 0 2122 2122
The original part of
unrestricted tradable shares
was converted into senior
management lock-in shares.--
Lin Weifeng 3536 1 3537 -- --
Total 3536 2123 5659 -- --
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 number of
common
shareholders at
the end of the
94746
Total shareholders
at the end of the
month from the
99561
The total
number of
preferred
0
Total preferred shareholders at
the end of the month from the date
of disclosing the annual report(if
0
reporting period date of disclosing shareholders
voting rights
any)(See Notes 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Shareholders
Nature of
shareholder
Proportion
of shares
held（%）
Number of
shares held at
period -end
Changes in
reporting
period
Amount of
restricted
shares held
Amount of
un-restricted
shares held
Number of share
pledged/frozen
State of
share
Amount
Guangdong Energy Group
Co. Ltd.
State-owned
legal person
67.39% 3538005285 1893342621 1644662664
China Securities Finance
Co. Ltd.
State-owned
legal person
2.84% 148862420 3113440 148862420
Shenzhen Guangfa Electric
Power Investment Co. Ltd.State-owned
legal person
2.22% 116693602 116693602
Guangdong Electric Power
Development Corporation
State-owned
legal person
1.80% 94367341 94367341
Li Zhuo
Domestic
Natural person
0.60% 31542323 -161520 31542323
National Social Security
Fund 103 portfolio
Domestic
Non-State
owned legal
person
0.48% 24994982 2000000 24994982
Zheng Jianxiang
Domestic
Natural person
0.43% 22567698 885700 22567698
Harbin Hali Industry Co.Ltd.
Domestic
Non-State
owned legal
person
0.40% 20942645 -1125920 20942645
CHINA INT'L CAPITAL
CORP HONG KONG
SECURITIES LTD
Overseas Legal
person
0.29% 15316066 -1 15316066
Harbin Daoli District
Charity Foundation
Domestic
Non-State
owned legal
person
0.26% 13722893 -28295568 13722893
Explanation on associated relationship
among the aforesaid shareholders
The fourth largest shareholder Guangdong Electric Power Development Corporation is the
wholly-owned subsidiaries of the largest shareholder Guangdong Energy Group. These two
companies have relationships; whether the other shareholders have relationships or
unanimous acting was unknown
Shareholding of top 10 shareholders of unrestricted shares
Name of the shareholder
Quantity of unrestricted shares held
at the end of the reporting period
Share type
Share type Quantity
Guangdong Energy Group Co. Ltd. 1644662664 RMB Common shares 1644662664
China Securities Finance Co. Ltd. 148862420 RMB Common shares 148862420
Shenzhen Guangfa Electric Power Investment
Co. Ltd.
116693602 RMB Common shares 116693602
Guangdong Electric Power Development
Corporation
94367341 RMB Common shares 94367341
Li Zhuo 31542323 RMB Common shares 31542323
National Social Security Fund 103 portfolio 24994982 RMB Common shares 24994982
Zheng Jianxiang 22567698
Foreign shares placed in
domestic exchange
22567698
Harbin Hali Industry Co. Ltd. 20942645 RMB Common shares 20942645
CHINA INT'L CAPITAL CORP HONG
KONG SECURITIES LTD
15316066
Foreign shares placed in
domestic exchange
15316066
Harbin Daoli District Charity Foundation 13722893 RMB Common shares 13722893
Explanation on associated relationship or
consistent action among the top 10
shareholders of non-restricted negotiable
shares and that between the top 10
shareholders of non-restricted negotiable
shares and top 10 shareholders
The fourth largest shareholder Guangdong Electric Power Development Corporation is
the wholly-owned subsidiaries of the largest shareholder Guangdong Energy Group.These two companies have relationships; whether the other shareholders have
relationships or unanimous acting was unknown.
Explanation on shareholders participating in
the margin trading business(if any )(See Notes
4)
The Fifth largest shareholder Li Zhuo holds35000 A shares of the Company through A
shares ordinary stock accountand holds 31507323A shares of the Company through
stock account with credit transaction and guarantee hold 31542323 shares of the
Company's stock totally.
The Eighth largest shareholder Harbin Hali Industry Co. Ltd. holds20942645 A shares
of the Company through stock account with credit transaction and guarantee.The Tenth largest shareholder Harbin Daoli District Charity Foundation holds72287 A
shares of the Company through A shares ordinary stock accountand holds 13650606A
shares of the Company through stock account with credit transaction and guarantee hold
1372289 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.□ 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
Name of the Controlling
shareholder
Legal
representative
/Leader
Date of
incorporation
Organization code Principal business activities
Guangdong Energy Group
Co. Ltd.
Li Zhuoxian August 32001 91440000730486022G
Management and sales of the
electricity investment construction
operation management，electricitypower(Thermal Power)，The industry of transportation
resources environmental protection，new source of energy electricity
investment; investment planning and
consulting ; information consulting
service; sales of production materials.The equity of the controlling
shareholder in other domestic
and foreign listed companies
held or partly held by it in the
report period
Unknown
Change of the actual controller in the reporting period
□Applicable √Not applicable
No such cases in the Reporting Period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Name of the controlling
shareholder
Legal
representative/p
erson in charge
Date of
establishment
Organization code Principal business activities
State-owned Assets supervision
and administration Commission of
Guangdong Provincial People’s
Government
Li Cheng June 262004 114400007583361658
As the special institution directly
subordinate to Guangdong
Provincial People's Government
performed the obligation of
provincial state-asset contributor
entrusted by the provincial
government.
Equity of other domestic/foreign
listed company with share
controlling and share participation
by controlling shareholder in
reporting period
Unknown
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% share held
□Applicable √Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders Actual Controllers Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
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
Name Positions
Office
status
Sex Age
Starting
date of
tenure
Expiry
date of
tenure
Shares
held at the
year-begin
(share)
Amount of
shares
increased at
the reporting
period(share)
Amount of
shares
decreased at
the reporting
period(share)
Other
changes
increase/
decrease
Shares
held at
the
year-end
(share)
Wang Jin
Board
chairman
In
office
Male 55
June
112018
September
182020
Wang Jin Director
In
office
Male 55
September
182017
September
182020
Rao Subo Director
In
office
Male 54
September
182017
September
182020
Wen
Lianhe
Director
In
office
Male 50
September
182017
September
182020
2830 2830
Wen
Shufei
Director
In
office
Female 54
September
182017
September
182020
Chen Ze Director
In
office
Male 49
September
182017
September
182020
Li Fangji Director
In
office
Male 51
June
282018
September
182020
Zheng
Yunpeng
Director
In
office
Male 50
June
282018
September
182020
Zheng
Yunpeng
General
Manager
In
office
Male 50
June
112018
September
182020
Zhou Xian Director
In
office
Male 45
September
182017
September
182020
Chen
Changlai
Director
In
office
Male 55
September
182017
September
182020
Zhang
Xueqiu
Director
In
office
Male 52
September
182017
September
182020
Sha Qilin
Independent
director
In
office
Male 58
May
202014
September
182020
Shen
Hongtao
Independent
director
In
office
Female 51
May
202016
September
182020
Wang Xi
Independent
director
In
office
Male 48
May
202016
September
182020
Ma
Xiaoqian
Independent
director
In
office
Male 54
September
182017
September
182020
Yin
Zhongyu
Independent
director
In
office
Male 49
September
182017
September
182020
Zhang Chairman In Male 57 August September
Dewei of the
Supervisory
Committee
office 142012 182020
Li
Baobing
Supervisor
In
office
Male 44
June
282018
September
182020
Zhu
Weiping
Independent
Supervisor
In
office
Male 61
May
202014
September
182020
Jiang
Jinsuo
Independent
Supervisor
In
office
Male 50
May
202014
September
182020
Lin
Weifeng
Employee
supervisor
In
office
Male 50
May
152002
September
182020
4716 4716
Li Qing
Employee
supervisor
In
office
Male 41
May
202014
September
182020
Yang
Xuanxing
Deputy GM
In
office
Male 53
January
162014
September
182020
Liu Hui Deputy GM
In
office
Female 53
July
282010
September
182020
Liu Wei
Deputy GM
Finance
manager
In
office
Male 39
September
182017
September
182020
Liu Wei
Board
secretary
In
office
Male 39
October
242006
September
182020
Huang
Zhenhai
Board
chairman
Dimiss
ion
Male 56
August
252016
June
112018
Huang
Zhenhai
Director
Dimiss
ion
Male 56
August
252016
June
282018
Yao
Jiheng
Director
Dimiss
ion
Male 53
March
212014
June
282018
Yao
Jiheng
General
Manager
Dimiss
ion
Male 53
January
162014
June
112018
Zhao Li Supervisor
Dimiss
ion
Female 46
May
182011
June
282018
Total -- -- -- -- -- -- 7546 0 0 0 7546
II. Change in shares held by directors supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Huang Zhenhai Board chairman Dimission June 11 2018 Job change
Huang Zhenhai Director Dimission June 282018 Job change
Yao Jiheng Director Dimission June 282018 Job change
Yao Jiheng General Manager Dimission June 112018 Job change
Zhao Li Supervisor Dimission June 282018 Job Change
III.Posts holding
Work Experience in the past five years of Directors supervisors and senior Executives in Current office
Mr. Wang Jin was born in May 1963. He holds a Bachelor of Engineering from Nanjing Institute of Technology
and a Master of Business Administration from Jinan University. He is now a senior engineerand currently serves
as the deputy chief engineer of Guangdong Energy Group Co. Ltd.chairman of Guangdong Electric Power
Development Co. Ltd..He once served as director of boiler maintenance workshop in Shaoguan Power Plant
director of Engineering Technology Department of Zhuhai Power Plant’s Planning and Construction Department
deputy director of Zhuhai Power Plant executive deputy general manager of Guangzhu Power Generation Co.Ltd. and general manager of Zhuhai Power Plant Co. Ltd. general manager and secretary of the Party Committee
of Guangdong Zhuhai Jinwan Power Generation Co. Ltd. general manager of Guangzhu Power Generation Co.Ltd. the deputy chief engineer and the manager of the Department of Management and the secretary of the Party
Branch of Guangdong Yudean Group Co. Ltd. and concurrently serves as a director of Guangdong Electric
Power Development Co. Ltd.Mr. Rao Subo born in May 1964 is bachelor of Engineering of Chongqing University and graduate of the Central
Party School and is a Senior Engineer (Professor Level). He is currently a member of the disciplinary committee
deputy chief engineer and minister of safety supervision and production technology department of Guangdong
Energy Group Co. Ltd. and head of preparation team of Yudean electric power and information technology
center. He once served as deputy chief engineer of Shaoguan Power Plant deputy director of the Department of
Biotechnology of Guangdong Electric Power Group Corporation director of Department of Biotechnology and
Safety Supervision of Guangdong Yudean Assets Management Co. Ltd. director of Department of
Biotechnology and Safety Supervision deputy chief engineer of Guangdong Yudean Group Co. Ltd. and director
of the Shajiao A Power Plant and party committee secretary Deputy chief engineer Secreatary of the Safety
Supervision and Produce technology Dept Secreatary of the Party Branch and Head of the Information
Technology Centre Preparatory team of Guangdong Yudean Group.Mr. Wen Lianhe was born in October 1968 and graduated from Harbin Institute of Technology. He is now senior
engineer (professor level) and currently deputy chief engineer and director of Strategic Development Department
of Guangdong Energy Group Co. Ltd. He once served as deputy minister of Biotechnology and Safety
Supervision Department of Guangdong Yudean Group Co. Ltd. general manager and party committee secretary
of Guangdong Red Bay Power Generation Co. Ltd. Deputy chief engineer Minister of strategic Development
and Secretary of Party Branch of Yudean Group.Ms. Wen Shufei born in August 1964 is Bachelor of Economics from Zhongnan University of Finance and
Economics. She is an accountant and currently serves as deputy chief accountant and head of financial department
of Guangdong Energy Group Co. Ltd. She once served as deputy division chief and division chief of the Second
Business Office of Guangdong Provincial Finance Ombudsman Office of Ministry of Finance deputy group
leader of preparatory group deputy general manager party branch secretary and general manager of Guangdong
Yudean Finance Co. Ltd.Mr. Chen Ze was born in January 1969. He holds a bachelor degree from Chongqing University and a doctoral
degree in management from Huazhong University of Science and Technology. He is senior economist corporate
counsel (practicing qualifications) and currently serves as the general counsel secretary of the board of directors
and director of legal affairs and capital operation department of Guangdong Energy Group Co. Ltd. He once
served as deputy director of the general department and director of capital operation and legal affairs department
of Guangdong Yudean Group Co. Ltd. general manager and party branch secretary of Guangdong Yudean
Shipping Co. Ltd.Mr. Li Fangji born in November 1967 is a senior engineer. He holds a bachelor degree from Beijing Institute of
Water Resources and Electric Power Economics and Management and a master degree in engineering from
Tianjin University. He currently serves as Deputy Chief Engineer of Guangdong Energy Group Co. Ltd. and
concurrently serves as Minister of Strategy Development Department and Secretary of Party Branch of Yudean
Group Corporation. He had served as Engineer of Shenzhen Energy Corporation Assistant to General Manager
and Deputy General Manager of Shenzhen Qianwan Electric Power Development Co. Ltd. Assistant to General
Manager Chairman of the Labor Union Deputy General Manager General Manager and Secretary of the Party
Committee of Shenzhen Guangqian Electric Power Co. Ltd. Secretary of Party Committee and General Manager
of Guangdong Yudean Jinghai Power Generation Co. Ltd.Mr. Zheng Yunpeng born in October 1968 Bachelor of South China University of Technology and MBA of
Jinan University is a senior engineer. Currently he is the general manager of Guangdong Electric Power
Development Co. Ltd. He had served as Deputy Minister of Strategy Development Department of Guangdong
Yudean Asset Management Co. Ltd. Deputy Minister of Strategy Development Department of Guangdong
Yudean Group Co. Ltd. Minister of Strategy Development Department of Guangdong Yudean Group Co. Ltd.Secretary of the Party Branch and General Manager of Branch Company of Guangdong Yudean Environmental
Protection Engineering Management Company Factory Director and Secretary of the Party Committee of
Huangpu Power Plant General Manager of Yuehua Power Generation Company General Manager and Secretary
of the Party Branch of Guangdong Yudean Natural Gas Co. Ltd.Mr. Zhou Xi'an born in March 1973 is Bachelor of Engineering from Zhejiang University Master of Engineering
from Huazhong University of Science and Technology. He is senior engineer and currently the director of the
general department and party branch secretary of Guangdong Energy Group Co. Ltd. He used to be deputy chief
engineer and deputy director of Changhu Hydropower Plant deputy general manager of Guangdong Yudean
Changhu Power Generation Co. Ltd. general manager and party committee secretary of Guangdong Yudean
Qingxi Power Generation Co. Ltd. general manager and party committee secretary of Guangdong Yudean
Nanshui Water Power Generation Co. Ltd.Mr. Chen Changlai was born in April 1963. He has a correspondence bachelor's degree in economics and
management from Guangdong Provincial Party School and a master's degree in business administration from
South China University of Technology. He is senior political engineer and currently the director and party
committee secretary of Shajiao A Power Plant. He used to serve as the director of the Beijing office of Guangdong
Yudean Group Co. Ltd. party committee secretarydiscipline inspection commission secretary and labour union
chairman of the Shajiao A Power Plant.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. 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
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.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. Ma Xiaoqian born in March 1964 is Ph.D.of engineering thermophysics from South China University of
Technology. He is a professor and currently serving as the director of the Key Laboratory of the Electric Power
School of South China University of Technology and concurrently serving as the chairman of the Guangzhou
Energy Institute the outside director of Guangzhou Environmental Protection Investment Group Co. Ltd. and the
independent director of Guangzhou Development Group Co. Ltd. He used to be the dean and vice president of
Electric Power College of the South China University of Technology.
Mr. Yin Zhongyu was born in February 1969. He is Master of rural finance from Northwest Agricultural
University. He is currently the general manager of the Great Wall Securities M&A Department. He previously
served as a director of the Guotai Junan M&A business and an executive director of Shanghai Longrui Investment
Consultants Company.
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 Energy 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.Mr. Li Baobing born in September 1974 graduated from Xi'an Jiaotong University with a master degree is a
senior economist. Currently he is the Deputy Minister of Finance Department of Guangdong Energy Group Co.Ltd. He had served as Project Manager and Deputy Chief of Office of Investment Banking Department of Huaxin
Securities Co. Ltd. Investment Manager of Shenzhen Innovation Technology Investment Group Co. Ltd. Senior
Manager of Investment Banking Center and Deputy General Manager of Guangzhou Xiancheng Group Co. Ltd.
Assistant to General Manager of Budget and Finance Department and Director of Asset Management Department
of Guangzhou Lingnan International Enterprise Group Co. Ltd. Manager of Investment Department Manager of
Comprehensive Department Board Secretary and Deputy General Manager of Guangdong Yudean Finance Co.
Ltd. and had concurrently served as General Manager of Shenzhen Tianxin Insurance Brokers Co. Ltd.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 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. 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 is Bachelor of finance from Zhongnan University of Economics and Law. He is
an economist and currently serves as the Company’s deputy general manager chief financial officer secretary of
the board of directors and concurrently as manager of the board affairs department. He used to be responsible for
the financial department of Guangdong Electric Power Development Co. Ltd. and be responsible and as the host
of the Board Affairs Department and the representatives of the company's securities affairs.Office taking in shareholder companies
√Applicable □Not applicable
Names of the
persons in office
Names of the shareholders
Titles engaged in the
shareholders
Sharing
date of
office term
Expiry date
of office
term
Does he /she
receive
remuneration or
allowance from
the shareholder
Rao Subo Guangdong Energy Group Co. Ltd. Deputy chief engineer October Yes
005
Rao Subo Guangdong Energy Group Co. Ltd.Head of preparation section of
Guangdong Electric Power
Infoirmation technology
Center
April 2016 Yes
Rao Subo Guangdong Energy Group Co. Ltd. Director of security July 2018 Yes
Wen Lianhe Guangdong Energy Group Co. Ltd. Deputy chief engineer
November
2010
Yes
Wen Lianhe Guangdong Energy Group Co. Ltd.Minister of Management and
Secretary of the party branch
April 2018 Yes
Wen Shufei Guangdong Energy Group Co. Ltd.
Deputy Chief accountant and
Minister of finance Dept
July 2014 Yes
Chen Ze Guangdong Energy Group Co. Ltd.
General Counsel Secretary of
the Board of Directors
Minister of legal Affairs and
Capital Operations
June 2016 Yes
Li Fangji Guangdong Energy Group Co. Ltd.
Deputy Chief Engineer
Minister of Strategic Dept and
Secretary of Party Branch
April 2018 Yes
Zhou Xian Guangdong Energy Group Co. Ltd.Minister of the integrated
department and secretary of
the party branch
November
2016
Yes
Zhang Dewei Guangdong Energy Group Co. Ltd.
Director of the Audit Dept and
Supervisory board Secretary
of the Party Branch
June 2012 Yes
Zhang Dewei Guangdong Energy Group Co. Ltd.
Deputy Secretary of the
discipline Inspection
Commission
September
2017
Yes
Zhang Dewei Guangdong Energy Group Co. Ltd. Chief auditor July 2018 Yes
Li Baobing Guangdong Energy Group Co. Ltd. Deputy Minister of Finance April 2018 Yes
Zhang Xueqiu
Guangzhou Development Group Co.Ltd.
Deputy General Manager and
Secretary of the Board of
Directors
May 2009 Yes
Notes to
post-holding in
shareholder’s
unit
Where there are more than one post the starting time of appointment shall be the starting time of the main post.Offices taken in other organizations
√Applicable □Not applicable
Name Other unit Title
Start date of
office term
End date of
office term
Drawing
remuneration and
allowance from of
other unit(Y/N)
Wang Jin
Maoming Zhenneng Thermoelectric Co.Ltd.
Board chairman December 2010 No
Wang Jin Yudean Investment Co. Ltd. Director December 2010 No
Wang Jin
Guangdong Yuehua Power Generation
Co.Ltd.
Board chairman July 2017 No
Wang Jin Guangdong Red Bay Power Generation Co. Board chairman September No
Name Other unit Title
Start date of
office term
End date of
office term
Drawing
remuneration and
allowance from of
other unit(Y/N)
Ltd. 2018
Wang Jin
Guangdong Yudean Jinghai Power
Generation Co. Ltd.
Director June 2018 No
Wang Jin
Guangdong Huizhou Natural Gas Power
Generation Co. Ltd.
Board chairman June 2018 No
Rao Subo
Guangdong Shaoguan Yuejiang Power
Generation Co. Ltd.
Board chairman July 2016 No
Rao Subo Guangdong Yuejia Electric Power Co. Ltd.Vice Board
chairman
December 2013 No
Rao Subo
Guangdong Yunhe Power Generation Co.Ltd.
Board chairman January 2014 No
Rao Subo North Union Electric Power Co. Ltd. Director March 2014 No
Rao Subo Shanxi Yudean Energy Co. Ltd. Board chairman January 2014 No
Rao Subo Yudean Investment Co. Ltd. Board chairman February 2014 No
Rao Subo
Tianshengqiao First Class Hydropower
Development Co. Ltd.
Board chairman June 2017 No
Wen Lianhe
Guangzhou Electric Power Trading Center
Co. Ltd.
Director July 2018 No
Wen Lianhe
Guangzhou Electric Power Trading Center
Co. Ltd.
Director August 2018 No
Wen Lianhe
Guangdong Yudean Jinghai Power
Generation Co. Ltd.
Board chairman July 2018 No
Wen Lianhe
Zhuhai Special Economic Zone
GuangzhuPower Generation Co. Ltd.
Board chairman June 2018 No
Wen Lianhe
Guangdong Zhuhai Power Generation Co.Ltd.
Board chairman July 2018 No
Wen Lianhe Yudean Investment Co. Ltd. Director
September
2018
No
Wen Shufei Guangdong Yudean Finance Co. Ltd. Board chairman August 2015 No
Wen Shufei Chaokang Investment Co. Ltd. Board chairman December 2014 No
Wen Shufei
Tianshengqiao First Class Hydropower
Development Co. Ltd.
Director August 2014 No
Wen Shufei
Zhuhai Special Economic Zone
GuangzhuPower Generation Co. Ltd.
Director July 2014 No
Wen Shufei
Guangdong Zhuhai Power Generation
Co.Ltd.
Director July 2014 No
Wen Shufei
Guangdong Zhuhai Jinwan Power
Generation Co. Ltd.
Director July 2014 No
Wen Shufei
Guangdong Yudean Financing Lease Co.Ltd.
Board chairman December 2016 No
Wen Shufei
Guangdong Yudeann property Insurance
Co. Ltd.
Board chairman
November
2017
No
Chen Ze Guangdong Yudean Shipping Co. Ltd. Board chairman August 2016 No
Chen Ze Guangdong Yudean Jinghai Power Board chairman July 2016 No
Name Other unit Title
Start date of
office term
End date of
office term
Drawing
remuneration and
allowance from of
other unit(Y/N)
Generation Co. Ltd.
Chen Ze Guangdong Yuejia Electric Power Co. Ltd. Board chairman July 2016 No
Chen Ze
Guangdong Yudean Faneng Investment Co.Ltd.
Executive
director
August 2016 No
Chen Ze
Tianshengqiao First Class Hydropower
Development Co. Ltd.
Director October 2016 No
Chen Ze Guangdong Yangjiang Port Co. Ltd. Board chairman August 2016 No
Li Fangji
Guangdong Yudean Xinhui Power
Generation Co. Ltd.
Board chairman June 2018 No
Li Fangji
Guangdong Yudean Zhongshan Thermal
Power Co. Ltd.
Board chairman June 2018 No
Li Fangji
Guangdong Yudean Huaxing Coal Gas
Union cycle Power Generation Co. Ltd.
Board chairman June 2018 No
Li Fangji Yangjiang Nuclear Power Co. Ltd. Director June 2018 No
Li Fangji
Taishan Nuclear Power Industry Investment
Co. Ltd. (Taishan Nuclear Power Joint
Venture Co. Ltd.)
Director June 2018 No
Li Fangji
Guangdong Yudean Holdings Western
Investment Co. Ltd.
Director July 2018 No
Zheng Yunpeng
Guangdong Yudean Huadu Natural Gas
Thermal Power Co. Ltd.
Board chairman
September
2018
No
Zheng Yunpeng
Guangdong Yudean Bohe Coal Power
Co.Ltd.
Board chairman July 2018 No
Zheng Yunpeng Shenzhen Guangqian Power Co. Ltd.
Executive
director
July 2018 No
Zhou Xian
Guangdong Yudean Real estate Investment
Co. Ltd.
Executive
director
July 2017 No
Zhang Xueqiu
Guangzhou Development New Energy
Investment Management Co. Ltd.
Executive
director
January 2015 No
Zhang Xueqiu
Guangzhou Development New City
Investment Co. Ltd.
Executive
director
May 2014 No
Zhang Xueqiu
Guangzhou Development Nansha
Investment Management Co. Ltd.
Executive
director
May 2014 No
Sha Qilin Guangdong Nanguo Desai Law firm
A
lawyerPartner
March 2007 No
Shen Hongtao Accounting dept Jinan University Professor April 2012 Yes
Shen Hongtao Guangsheng Nonferrous Metal Co. Ltd.Independent
Director
April 2015 Yes
Shen Hongtao
Guangzhou Yuexiu Finance Holding Group
Co. Ltd.
Independent
Director
November
2017
Yes
Shen Hongtao Guangzhou Store Co. Ltd.Independent
Director
September
2016
Yes
Wang Xi Lingnan College Sun Yat-sen University Professor July 2006 Yes
Wang Xi Palm Graden Co. Ltd. Independent May 2014 Yes
Name Other unit Title
Start date of
office term
End date of
office term
Drawing
remuneration and
allowance from of
other unit(Y/N)
Director
Wang Xi Guangzhou Securities Co. Ltd.Independent
Director
December 2012 Yes
Wang Xi Zhuhai Rural Commercial Bank Co. Ltd.Independent
Director
July 2014 Yes
Yin Zhongyu Greal Wall Secutities Co. Ltd.General
Manager of M
& A
Department
March 2009 Yes
Ma Xiaoqian
Provincial Key Laboratory School of
Electric Power South China University of
Technology
Director July 2014 Yes
Ma Xiaoqian
Guangzhou Environmental protection
Investment Group Co. Ltd.
External
director
September
2016
Yes
Ma Xiaoqian Guangzhou Development Group Co. Ltd.Independent
Director
June 2016 Yes
Zhang Dewei
Guangdong Red Bay Power Generation
Co.Ltd.
Director April 2010 No
Zhang Dewei Yangjiang Nuclear Power Co. ltd.
Chairman of the
Supervisory
Committee
June 2016 No
Zhang Dewei
Taishan Nuclear Power Industry InvestmentCo. Ltd.（Taishan Nuclear Power JointVenture Co. Ltd.）
Supervisor June 2016 No
Li Baobing
Guangdong Yudean Jinghai Power
Generation Co. Ltd.
Chairman of the
Supervisory
Committee
June 2018 No
Li Baobing Guangdong Power Development Co. Ltd.
Chairman of the
Supervisory
Committee
July 2018 No
Li Baobing CSPG Energy Co. Ltd. Supervisor June 2018 No
Li Baobing Yudean Group .Guizhou Co. Ltd. Director August 2018 No
Zhu Weiping
Institute of industrial Economics Jinan
University
Professor
President
January 2000 Yes
Zhu Weiping Guangsheng Nonferrous Metal Co. ltd.Independent
director
November
2016
Yes
Jiang Jinsuo Guangdong finance Institute
Professor
Headof Dept
January 2013 Yes
Li Qing
Guangdong Yudean Bohe Coal Power
Co.Ltd.
Supervisor December 2010 No
Li Qing Lincang Yudean Energy Co. Ltd. Supervisor January 2015 No
Li Qing
Guangdong Yudean Yongan Natural Gas
thermal Power Co. Ltd.Supervisor June 2016 No
Li Qing
Guangdong Yudean Qujie Natural Gas
Power Generation Co. Ltd.Supervisor April 2015 No
Name Other unit Title
Start date of
office term
End date of
office term
Drawing
remuneration and
allowance from of
other unit(Y/N)
Li Qing
South Offshore wind power Union
Development Co. Ltd
Supervisor June 2012 No
Yang
Xuanxing
Shanxi Yudean Energy Co. Ltd.Vice Board
chairman
August 2015 No
Yang
Xuanxing
Guangdong Yuejia Power Co. Ltd. Director May 2015 No
Yang
Xuanxing
Zhanjiang Electric Power Co. Ltd. Board chairman May 2015 No
Yang
Xuanxing
Guangdong Yudean Zhanjiang Wind Power
Generation Co. Ltd.
Board chairman July 2016 No
Yang
Xuanxing
Zhanjiang Zhongyue Energy Co. Ltd. Board chairman January 2015 No
Yang
Xuanxing
Guangdong Yongan Natural Gas Thermal
Power Co. Ltd.
Board chairman June 2016 No
Yang
Xuanxing
Guangdong Huizhou Pinghai Power
Generation Plant Co. Ltd.Vice Board
chairman
March 2017 No
Yang
Xuanxing
Guangdong Red Bay Power Generation Co.Ltd.
Director May 2014 No
Yang
Xuanxing
Shenzhen Guangqian Power Co. Ltd.
Convenor of the
Board of
Supervisors
August 2011 No
Liu Hui Guangdong Yudean Shipping Co. Ltd. Director June 2017 No
Liu Hui
Maoming Zhenneng Thermoelectric Co.Ltd.
Director
September
2010
No
Liu Hui
Guangdong Yudean Humen Power
Generation Co. Ltd.
Director October 2017 No
Liu Hui
Guangdong Yudean Holdings Western
Investment Co. Ltd.Vice Board
chairman
August 2014 No
Liu Hui
Guangdong Yudean Bohe Coal Power
Co.Ltd.
Director
September
2010
No
Liu Hui
Guangdong Yudean Huadu Natural Gas
Thermal Power Co. Ltd.
Director July 2016 No
Liu Hui Yunnan Yuntou Weixin Energy Co. Ltd.Vice Board
chairman
March 2017 No
Liu Hui
Guangdong Guohua Yudean Taishan Power
Generation Co. Ltd.Supervisor December 2018 No
Lui Hui Yunnan Yuntou Weixin Coal Co. Ltd.Vice Board
chairman
March 2017 No
Liu Wei
Guangdong Electric Power Industry Fuel
Co. Ltd.
Director December 2017 No
Liu Wei Guangdong Yudean Finance Co. Ltd. Director
November
2017
No
Liu Wei
Guangdong Huizhou Natural Gas Power
Generation Co. Ltd.
Director October 2017 No
Liu Wei Guangdong Yudean Jinghai Power Director June 2017 No
Name Other unit Title
Start date of
office term
End date of
office term
Drawing
remuneration and
allowance from of
other unit(Y/N)
Generation Co. Ltd.Liu Wei
Guangdong Red Bay Power Generation Co.Ltd.
Director December 2017 No
Liu Wei
Guangdong Wind Power Generation Co.Ltd.
Director
Novermber
2017
No
Liu WEI
Guangdong Yudean Electric Power Sales
Co. Ltd.
Director December 2017 No
Liu Wei
Guangdong Yudean property Insurance Co.Ltd.
Director April 2017 No
Liu Wei Guangdong Yudean Shipping Co. Ltd.
Convenor of the
Board of
Supervisors
May 2007 No
Liu Wei Shenzhen Capital Group Co. Ltd. Supervisor August 2016 No
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 before tax was total RMB 4.3232 million.Remueration to directors supervisors and senior executives in the reporting period
In RMB10000
Name Positions Sex Age Office status
Total remuneration
received from the
shareholder
Remuneration actually
receivect at the end of
the reporting period
Wang Jin Board chairman Male 55 In Office 32.4 No
Rao Subo Director Male 54 In office Yes
Wen Lianhe Director Male 50 In office Yes
Wen Shufei Director Female 54 In office Yes
Chen Ze Director Male 49 In office Yes
Li Fangji Director Male 51 In office Yes
Zheng Yunpeng
Director General
Manager
Male 50 In office 32.4 No
Zhou Xian Director Male 45 In office Yes
Chang Changlai Director Male 55 In office 65.82 No
Zhang Yueqiu Director Male 52 In Office Yes
Sha Qilin Independent director Male 58 In office 10.14 No
Shen Hongtao Independent director Female 51 In office 8 No
Wang Xi Independent director Male 48 In office 9.07 No
Ma Xiaoqian Independent director Male 54 In office 9.61 No
Yin Zhongyu Independent director Male 49 In office 7.46 No
Zhang Dewei
Chairman of the
Supervisory Committee
Male 57 In office Yes
Li Baobing Supervisor Male 44 In office Yes
Zhu Weiping Independent Supervisor Male 61 In office 5.36 No
Jiang Jinsuo Independent Supervisor Male 50 In office 5.71 No
Lin Weifeng Employee supervisor Male 50 In office 25.51 No
Li Qing Employee supervisor Male 41 In office 31.64 No
Yang Xuanxing Deputy General manager Male 53 In office 61.82 No
Liu Hui Deputy General manager Female 53 In office 58.65 No
Liu Wei
Deputy General manager
Finance Manager Board
secretary
Male 39 In office 54.06 No
Huang Zhenhai Board chairman Male 56 Dimission Yes
Yao Jiheng
Director General
Manager
Male 53 Dimission 14.67 No
Zhao Li Supervisor Female 46 Dimission Yes
Total -- -- -- -- 432.32 --
Incentive equity to directors supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
V. Particulars about employees.
1. Staff jobs education job title number and proportion refer to the following pie chart:
Number of in-service staff of the parent company（person） 1156
Number of in-service staff of the main subsidiaries（person） 5579
Total number of the in-service staff（person） 6735
Total number of staff receiving remuneration in the current
period（person）
6768
The number of the parent company and the main subsidiary’s
retired staffs who need to bear the cost（person）
1475
Professional
Classified according by Professions Number of persons（person）
Production 4272
Sales 94
Technical 1302
Financial 196
Administrative 844
Other 27
Total 6735
Education
Classified according by education background Number of persons（person）
Master 208
Universities 3069
Colleges 1933
Technical secondary school 347
High school and Below 1178
Total 6735
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.
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
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 thecorporate 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 operationseparation 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
Problem
Types
Name of the
Controlling
Shareholders
Property of
the Controlling
Shareholders
Problems and Causes Countermeasures Time Schedule of Works and Follow-up Program
Horizontal
competitions
Guangdong
Energy Group
Co. Ltd.
Local SASAC
Guangdong Energy
Group was
established when
Guangdong
Provincial
Government took
the lead in the
implementation ofthe “plant andnetwork separation”
On January 3 2018 the
company disclosed
Announcement on
Controlling Shareholders'
Commitment to Perform
Related Matters (public
notice No.: 2018-01); on
January 13 2018 the
company disclosed
Announcement of
Our company will actively
fulfill the trusteeship and
responsibilities according tothe “Equity Custody
Agreement” and participate in
the management and
decision-making and
inspection and supervision of
the custody target. The
company will cooperate with
power system
reform in China and
was separated and
formed from
Guangdong
Provincial Power
Group Corporation.It is the largest and
most powerful
power generation
enterprise in
Guangdong
Province. GED is
the only listed
company under the
Guangdong Energy
Group and is
engaged in power
production business.
At present
Guangdong Energy
Group still has some
remaining power
generation assets
that have not been
included in GED
temporarily.
Considering the
situation of these
power generation
assets it is
temporarily not in
line with the listing
conditions and it is
difficult to solve
these problems in
the short term.Therefore there is a
certain degree of
horizontal
competition.Related Transactions on
the "Equity Custody
Agreement" signed with
Guangdong Energy
Group Co. Ltd. (public
notice No.: 2018-04). In
order to avoid
competition in the same
industry and to fulfill the
relevant horizontal
competition
commitments Y
Guangdong Energy
Group has signed the
Entrusted Management
Agreement with the
company and all the
shareholders' rights other
than the ownership
income and disposal
rights of the company
that temporarily fails to
meet the listing
conditions in the
company's custody area
of the Guangdong Energy
Group are escrowed to
our company.Guangdong Energy Group to
push forward the defect
rectification of the underlying
assets study the rectification
and solution to the defects and
obstacles in the relevant assets
that do not meet the listing
conditions promote relevant
rectification work from the
aspects of improving project
approval or approval
procedures clarifying land and
property ownership enhancing
asset profitability and
implementing legal
compliance. For custody assets
that meet the listing conditions
in the future Guangdong
Energy Group will in
accordance with the unified
deployment of the Guangdong
Provincial Party Committee
and the provincial government
and the overall requirements
for the reform of state-owned
enterprises actively create
conditions for the injection into
listed companies in accordance
with the status of the assets
under custody combined with
enterprise restructuring
structural adjustment
arrangements electricity
market and capital market
conditions.IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Sessions Type
Investor
participation
ratio
Meeting Date Disclosure date Disclosure index
The first provisional
shareholders’ General
meeting in 2018
Provisional
shareholders’
General Meeting
72.87%
January
292018
January
302018
Name of Announcement :Announcement of
Resolution of the first Provisional
shareholders’ general meeting in 2018，
Announcement No.:2018-09
Published in China Securities Daily Securit
ies Times and http//.www.cninfo.com.cn
The Second
provisional
shareholders’ General
meeting in 2018
Provisional
shareholders’
General Meeting
72.78% April 92018 April 102018
Name of Announcement :Announcement of
Resolution of the Second Provisional
shareholders’ general meeting in 2018，
Announcement No.:2018-21
Published in China Securities Daily Securit
ies Times and http//.www.cninfo.com.cn
7 Shareholders’
general meeting
Annual General
Meeting
72.80% June 112018 June 122018
Name of Announcement :Announcement of
Resolution of 2017 shareholders’ general
meeting ，Announcement No.:2018-33.Published in China Securities Daily Securit
ies Times and http//.www.cninfo.com.cn
The Third provisional
shareholders’ General
meeting in 2018
Provisional
shareholders’
General Meeting
72.65% June 282018 June 292018
Name of Announcement :Announcement of
Resolution of the Third Provisional
shareholders’ general meeting in 2018，
Announcement No.:2018-52
Published in China Securities Daily Securit
ies Times and http//.www.cninfo.com.cn
The Fourth
provisional
shareholders’ General
meeting in 2018
Provisional
shareholders’
General Meeting
72.62%
October
112018
October
122018
Name of Announcement :Announcement of
Resolution of the Fourth Provisional
shareholders’ general meeting in 2018，
Announcement No.:2018-52
Published in China Securities Daily Securit
ies 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
Independent
Directors
Number of
Board meetings
necessary to be
attended in the
reporting period
Number of
spot
attendances
Number of
meetings
attended by
Communication
Number of
attendances
by
representative
Number of
absence
Failure to personally
attend board
meetings
successively twice
(Yes/No)
Times for
attending the
AGM
Sha Qilin 7 5 2 0 0 No 5
Shen Hongtao 7 3 2 2 0 Yes 4
Wang Xi 7 5 2 0 0 No 5
Ma Xiaoqian 7 5 2 0 0 No 5
Yin Zhongyu 7 5 2 0 0 No 2
Notes to failure to personally attend Board Meetings Successively Twice
During the reporting period independent director Shen Hongtao was unable to attend the fourth meeting of the
ninth board of directors and the fifth meeting of the ninth board of directors in person due to business. He
entrusted independent director Sha Linqi to attend all the above meetings and exercise voting rights. Independent
Director Shen Hongtao carefully reviewed the meeting materials and performed his duties independently and
impartially before the board meeting. According to the power of attorney issued by him there is no objection 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.. 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.
Nil
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
The Ninth board of directors of the company comprises committee of strategy audit budget nomination 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 2018 the duty fulfillment
conditions of each special committee of the company's board of directors are as follows:
1. According to relevant regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange
the Audit Committee of the Board of Directors of the Company conscientiously has performed its duties and
participated in the annual audit internal control supervision risk management semi-annual report review and
major accounting treatment review of the Company. During the reporting period the Audit Committee of the
ninth Board of Directors held a total of 4 meetings to review and form review opinions on the Company's 2017
Annual Report 2017 Internal Control Evaluation Report 2017 Comprehensive Risk Management Report 2018
Audit Institution Hiring Provision for Impairment of Assets 2018 Semi-Annual Report Adjustment of
Depreciation Years of Fixed Assets in Shajiao A Power Plant and other proposals which played an important role
in the effective decision-making of the Board of Directors.
2. The Board of Directors' Remuneration and Appraisal Committee reviewed the remuneration of the directors
supervisors and senior management personnel disclosed in this report and considered that the determination of the
remuneration standard and the granting of annual remuneration can be combined with the performance of the
respective positions which is consistent with the company’s remuneration management regulations; the
remuneration of directors supervisors and senior management personnel disclosed in the annual report is true.
3. The budget committee of the Ninth board held its first meeting on April 9 2018 reviewed and adopted the
“Proposal on Illustration of Budget Implementation in 2017 and Budget Preparation in 2018”.
4. On June 1 2018 the Nomination Committee of the Board of Directors deliberated the Proposal on
Recommending Zheng Yunpeng and Li Fangji as Company Director Candidates and the Proposal on
Recommending Zheng Yunpeng as Company General Manager by means of communication voting and carefully
examined the qualifications of relevant candidates.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
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 internal control April 122019
Disclosure index of appraisal report on internal control
Juchao Website:（http://www.cninfo.com.cn） Selfevaluation report of
internal control in 2018
Proportion of total unit assets covered by appraisal in
the total assets of the consolidated financial statements
of the company
95 %
Proportion of total unit incomes covered by appraisal in
the total business incomes of the consolidated financial
statements of the company
99 %
Standards of Defects Evaluation
Category Financial Report Non-financial Report
Qualitative criteria
Qualitative criteria of evaluation towards inner control deficiency of
financial report made by company are as follows: Ⅰ the innercontrol of financial report should be considered as “significantdeficiency” if the following circumstances (including but not limited
to) occurred: ① the ineffective environmental control; ②
irregularities appearing between company directors supervisors and
senior executives; ③ serious mistakes in the financial statements of
the current period found by external audit but not the inner control in
the process of operating; ④ ineffective supervision of inner control
from directorate and inner audit institution. Ⅱ the inner control of
financial report should be considered as “serious deficiency” if the
following circumstances occurred: ① accounting policy chosen and
applied is not based on the GAAP; ② anti-irregularity procedure
and control measures are not established; ③ very few relative
control measures are established or implemented in terms of the
accounting treatment related to unconventional or special transaction;
④ one or more deficiencies exist in the control process of final
financial report and the authenticity accuracy and integrity of
establishment can not be assured reasonably. Ⅲ common
deficiency means apart from the above “significant deficiency” and
“serious deficiency” other deficiencies exist in the inner control
process.Qualitative criteria of evaluation
towards inner control deficiency of
non-financial report made by
company are as follows: ①
significant deficiency means one or
more combinations of control
deficiency which may result in
seriously deviating from control
goals. ② serious deficiency means
one or more combinations of
control deficiency whose severity
and financial result are less than
those of significant deficiency with
possibility of deviating company
from its control goals. ③ common
deficiency means other control
deficiencies apart from significant
and serious deficiencies.Quantitative standard
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 statement which is measured by operating receipt.The amount of misstatement in financial report resulted from the
control deficiency or its combination is less than 0.5 percent of the
operating receipt which could be considered as the common
deficiency. That would be considered as serious deficiency if the
amount of misstatement in financial report resulted from the control
deficiency or its combination is more than 0.5 percent but less than 1
percent of the operating receipt. And that would be regarded as
significant deficiency if that is more than 1 percent of the operating
receipt. ② inner control deficiency may lead to loss related to assets
management which is measured by total assets. The amount of
①the significant deficiency means
that the direct property loss is
between 50 million yuan .(2) the
significant deficiency means hat the
direct property loss is between 30
million yuan (including 30 million
yuan) ; the serious deficiency means
that the direct property loss is
between 30 million.misstatement in financial report resulted from the control deficiency
or its combination is less than 0.5 percent of the total assets which
could be considered as the common deficiency. That would be
considered as serious deficiency if the amount of misstatement in
financial report resulted from the control deficiency or its
combination is more than 0.5 percent but less than 1 percent of the
total assets. And that would be regarded as significant deficiency if
that is more than 1 percent of the total assets.Number of major
defects in financial
reporting（a）
0
Number of major
defects in non financial
reporting (a)
0
Number of important
defects in financial
reporting（a）
0
Number of important
defects in non financial
reporting（a）
0
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
We believe that Guangdong Electric Power Development Co. Ltd. has maintained effective internal control over financial reporting
in all material respects as of 31 December 2018 as per the Basic Rules for Enterprise Internal Control and relevant regulations.
Disclosure date of audit report
of internal control (full-text) Disclosure
Index of audit report of
internal control (full-text) April 122019
Internal audit report’s opinion Juchao Website: （http://www.cninfo.com.cn）2018 Audit report of internal control
Type of audit report on internal
control Unqualified auditor’s report
Whether there is significant
defectin non-financial report No
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
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 name
Bond short
name
Bond code Issue day Due day
Bond balance
(RMB
10000)
Interest
rate
Servicing way
2012 Corporate
bonds of
Guangdong
Electric Power
Development
Co. Ltd..
12 Yudean
Bond
112162.SZ
March
182013
March
172020
4030.65 4.95%
Using simple interest rate on a
yearly basis regardless of
compound interest. Due
payments once a year maturing
debt at a time. In the final phase
interest is paid together with the
principal redemption.
Corporate bonds listed or
trading places
Shenzhen Stock Exchange
Investor Proper Arrangement Not applicable
During the reporting period
interest payment situation of the
company bonds
1. Status of bond redemption
According to the “Prospectus for Public Offering 2012 Corporate Bond by Guangdong ElectricPower Development Co. Ltd.” (hereinafter referred to as the “Prospectus”) the company released“the First Suggestive Announcement of Guangdong Electric Power Development Co. Ltd on the
Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on the Bondholders' RepurchaseImplementation Measures” (Announcement No.: 2018-07)” “the Second Suggestive
Announcement of Guangdong Electric Power Development Co. Ltd on the Coupon Rate of ‘12Yuedian Debt’ Will Not Raised and on the Bondholders' Repurchase Implementation Measures”
(Announcement No.: 2018-08)” “the Third Suggestive Announcement of Guangdong ElectricPower Development Co. Ltd on the Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and onthe Bondholders' Repurchase Implementation Measures” (Announcement No.: 2018-10)”
respectively on January 29 2018 January 30 2018 and January 31 2018. The bondholders have
the right to choose to sell all or part of the “12 Yuedian Debt” held to the company in full or in
part at par value during the investor's put-back declaration period and the put-back price is
RMB100/sheet (excluding interest). The put-back declaration date is from January 29 2018 to
January 31 2018. According to the bond put-back declaration data provided by China Securities
Depository and Clearing Co. Ltd. Shenzhen Branch the put-back quantity of “12 Yuedian Debt”
was 11596935 sheets and the put-back amount was RMB 1217087933.25 (including interest)
and the remaining custody quantity was 403065 sheets. On March 16 2018 the company paid the
principal and interest of some of the bonds of this “12 Yuedian Debt” back to the designated bank
account of China Securities Depository and Clearing Co. Ltd. Shenzhen Branch in full amount
and paid to the investor’s fund account on March 19 2018.
2. Status of bond interest payment
On March 19 2018 the company paid the bond interest for the current year to all the current
bondholders who have registered in China Securities Depository and Clearing Co. Ltd. Shenzhen
Branch by the closing of Shenzhen Stock Exchange on the afternoon of March 16 2018.
If the corporate bonds attached
to special clauses to the issuer
or the investors such as option
clause and exchangeable clause
please specify the
implementation status of the
corresponding clauses. (When
applicable)
The term of the current bonds is 7 years attaching the option that the issuer will redeem at the end
of the fifth year the option that the issuer raises the coupon rate and the option that the investors
will put back.
1. On January 29 2018 the company disclosed the “Announcement of Guangdong Power
Development Co. Ltd. on Abandoning the Exercise of the Issuer’s Redemption Option of “12Yuedian Debt” (Announcement No.: 2018-06). March 19 2018 is the 5th interest-bearing annual
interest payment date of “12 Yuedian Debt”. According to the “Prospectus” the company has the
right to decide whether to exercise the issuer’s redemption option on the 30th transaction date
before the interest payment date of the 5th interest-bearing year of the current bond. The company
decided to abandon the exercise of the "12 Yuedian Debt" issuer's redemption option that is "12
Yuedian Debt" continued to exist within the duration.
2. The company released “the First Suggestive Announcement of Guangdong Electric Power
Development Co. Ltd on the Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on the
Bondholders' Repurchase Implementation Measures” (Announcement No.: 2018-07)” “theSecond Suggestive Announcement of Guangdong Electric Power Development Co. Ltd on the
Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on the Bondholders' RepurchaseImplementation Measures” (Announcement No.: 2018-08)” “the Third Suggestive Announcementof Guangdong Electric Power Development Co. Ltd on the Coupon Rate of ‘12 Yuedian Debt’Will Not Raised and on the Bondholders' Repurchase Implementation Measures” (AnnouncementNo.: 2018-10)” respectively on January 29 2018 January 30 2018 and January 31 2018.
According to the “Prospectus” the issuer has the right to decide to raise the coupon rate for the
next two years at the end of the fifth year of the “12 Yuedian Debt”. In January 2018 the
company's current bond has a coupon rate of 4.95% for the first five years of the duration of the
bond. At the end of the fifth year of the bond's duration the company chose not to raise the
coupon rate which is the 2-year coupon rate after the current bond's duration will still remain at
4.95%. According to the "Prospectus" the bondholders can declare the put-back in a specified
manner within 3 trading days from the date of the issuer's announcement on whether to raise the
coupon rate and the increase rate of the current bond. The “12 Yuedian Debt” put-back declaration
date is from January 29 2018 to January 31 2018.
3. On March 17 2018 the company disclosed the “Announcement of Guangdong Power
Development Co. Ltd. on the Put-back Results of the Corporate Bonds ‘12 Yuedian Debt’”
(Announcement No.: 2018-14). According to the bond put-back declaration data provided by
China Securities Depository and Clearing Co. Ltd. Shenzhen Branch the put-back quantity of “12Yuedian Debt” was 11596935 sheets and the put-back amount was RMB 1217087933.25
(including interest) and the remaining custody quantity was 403065 sheets. On March 16 2018
the company paid the principal and interest of some of the bonds of this “12 Yuedian Debt” back
to the designated bank account of China Securities Depository and Clearing Co. Ltd. Shenzhen
Branch in full amount and paid to the investor’s fund account on March 19 2018.
2. Bond trustee and the credit rating agency information
Bond trustee：
Name
CITIC Securities
Co. Ltd.
Office
22/F CITIC Securities Building
No.48. Liangmaqiao Road
Chaoyang District Beijing
Contact
Song Yilan
Yang Xin
Tel 010-60838888
The credit rating agencies which follow and rate the corporate bond during the reporting period
Name CCXR Office address
8/F Anji Building No.760 Tibet South Road
Huangpu District Shanghai.
During the report period the bond trustee
credit rating agency employed by the
company that have changed reasons for
the changeperforming procedures relevant
influence on investorsetc(If applicable).Not applicable
. The usage of corporate bonds to raise money
The usage and performance of raised funds
from Corporate bonds
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
as to improve the company’s funds status.
At the end of balance (RMB 10000) 0
Special fund raising account operation
The net amount of the funds raised by the 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.Whether the usage of the raised money
corresponding to the purposes of promise
use plans and other agreement
Yes
4.Corporate bond rating information
On June 11 2018 CCXR traced and analyzed the credit status of the company and the company’s bonds of
“12-Yudean 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(2018).
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).
During the reporting period some investors exercised the put-back option. The put-back quantity of “12 Yudean
Debt” was 11596935 sheets and the put-back amount was RMB 1217087933.25 (including interest). On
March 16 2018 the company paid the principal and interest of some of the bonds of this “12 Yuedian Debt” back
to the designated bank account of China Securities Depository and Clearing Co. Ltd. Shenzhen Branch in full
amount and paid to the investor’s fund account on March 16 2018.The quantity of remaining bonds is 403065 sheets and the maturity date is March 18 2020. The principal and the
final interest will be paid at the expire date. 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 2017) on May 28 2018 and the report was disclosed on
the cninf website on May 30 2018 by the company.
8.During the reporting period the company's major accounting data and financial indicators for last 2 years
In RMB10000
Items 2018 2017 At the same time rate of change
Earnings before interest tax
depreciation and amortization
599620.49 299991.27 99.88%
Current ratio 62.89% 60.09% 2.80%
Debt ratio 57.02% 58.17% -1.15%
Quick ratio 47.35% 41.95% 5.40%
EBITDA/Total debts 14.34% 7.47% 6.87%
Interest coverage ratio 1.86 1.99 -6.53%
Cash interest coverage ratio 5.31 3.9 36.15%
EBITDA interest coverage ratio 4.13 2.05 101.46%
Loans repayment rate 100 % 100 % 0 %
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
The extension of the period for the payment of coal-fired funds in the current period has led to an increase in net
cash flow and an increase in the multiple of cash interest protection in current operating activities.
9. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of
the bonds during the reporting period
1.On June 6 2018 the company issued 500000000 yuan of phase I ultra short-term financing bonds with a term
of 180 days. During the reporting period the payment of the principal and interest was 510479452 yuan.
.On August 24 2018 the company issued 600000000 yuan of phase II ultra short-term financing bonds with a
term of 180 days. During the reporting period the payment of the principal and interest was 0 yuan.
3.On November 28 2018 the company issued 500000000 yuan of phase III ultra short-term financing bonds
with a term of 28 days. During the reporting period the payment of the principal and interest was 500978082
yuan. On December 27 2018 the company issued 500000000 yuan of phase I ultra short-term financing bonds
with a term of 152 days. During the reporting period the payment of the principal and interest was 0 yuan
4. On March 18 2013 the Company publicly issued 12 Yudean bonds to the public with a nominal amount of
RMB 1200000000 and a term of 5+2 years. It is a kind of real-name book-entry corporate bonds. The interest
paid back during the reporting period was RMB 59400000.
5. On August 27 2018 the Company issued the first issue of 2018 medium-term notes in the inter-bank market
with a face value of RMB 800000000 and a term of 3 years. The interest to be repaid during the reporting period
is: 0 yuan.
6. The controlling subsidiary of the Company Guangdong Huizhou Pinghai Power Plant Co. Ltd. publicly issued
“16 Pinghai 01” to the public on September 26 2016. It was a real-name book-entry corporate bond (“16 Pinghai
01”) with a nominal amount of RMB 700000000 and a term of 5 years. The interest paid back during the
reporting period was RMB 21700000.
10.Information about the bank credit obtaining and use as well as repayment of the bank loans during the
reporting period
In ther report period the company signed an unconditional available bank amount limit of about RMB 30.436
billion of which the used amount limit was RMB 9.801 billion thus the remaining available bank amount limit
was about RMB 20.635 billion. In this year the company repaid bank loans of about RMB17.445 billion and the
balance of bank loans was RMB 28.074 billion.
11. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of
the bonds during the reporting period
The company had committed to pay the principal and interests to the bondholders according to the stipulations of
the prospectus of “Yudean Bonds” issuance. During the reporting period the company strictly fulfilled the above
commitments.
During the reporting period the Company strictly fulfilled the above-mentioned commitments and paid investors
in full the principal of some bonds sold back of "12 Yudean Bonds" and the bond interest of this year.
12.Major events occurring in the period of report
Nil
13.Whether there is a guarantor corporate bonds
□ Yes √No
XI. Financial Report
I. Audit report
Type of audit opinion Unqualified audit opinion
Date for signing the auditor’s report April 112019
Name of audit firm PWC Certified Public Accountants (special general partnership)
Auditing file No. PWC ZTSZD No.10033(2019)
Certified public accountant's name Wang Bin Guo Biyu
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
FINANCIAL STATEMENTS AND
AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
[English translation for reference only. Should there be any inconsistency between the
Chinese and English versions the Chinese version shall prevail.]
Guangdong Electric Power Development Co. Ltd.
Financial Statements and Auditor's Report
For the Year Ended 31 December 2018
[English translation for reference only]
Page
Auditor’s Report 105 - 110
Financial statements for the year ended 31 December 2018
Consolidated and company balance sheets 111 - 114
Consolidated and company income statements 115 -116
Consolidated and company cash flow statements 117 -119
Consolidated statement of changes in owners’ equity 120 - 121
Company statement of changes in owners’ equity 122 - 123
Notes to the financial statements 124 - 255
Supplementary Information 256 - 258
Auditor’s Report
PwC ZT Shen Zi (2019) No. 10033
(Page 1 of 6)
To all shareholders of Guangdong Electric Power Development Co. Ltd.Opinion
What we have audited
We have audited the accompanying financial statements of Guangdong Electric Power
Development Co. Ltd. (hereinafter “Guangdong Electric Power”) which comprise:
? the consolidated and company balance sheets as at 31 December 2018;
? the consolidated and company income statements for the year then ended;
? the consolidated and company cash flow statements for the year then ended;
? the consolidated and company statements of changes in owners’ equity for the year then
ended; and
? notes to the financial statements.Our opinion
In our opinion the accompanying financial statements present fairly in all material respects the
consolidated and company’s financial position of Guangdong Electric Power as at 31 December
2018 and their financial performance and cash flows for the year then ended in accordance with
the requirements of the Accounting Standards for Business Enterprises (“CASs”).
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.We are independent of Guangdong Electric Power in accordance with the Code of Ethics for
Professional Accountants of the Chinese Institute of Certified Public Accountants (“CICPA Code”)
and we have fulfilled our other ethical responsibilities in accordance with the CICPA Code.Key Audit Matters
Key audit matters are those matters that in our professional judgement were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole and in forming our
opinion thereon and we do not provide a separate opinion on these matters.
PwC ZT Shen Zi (2019) No. 10033
(Page 2 of 6)
Key Audit Matters (Cont’d)
Key audit matters identified in our audit are summarised as follows:
? Impairment of power related fixed assets intangible assets construction in progress and
goodwill
? Recognition of deferred tax assets related to tax losses
Key Audit Matters How our audit addressed the Key Audit
Matter
(1) Impairment of power related fixed assets
intangible assets construction in progress and
goodwill
Please refer to Note 2(29)(a) 4(11) (12) (13) and
(14) to the financial statements.
As Shajiao A Power Plant (“Shajiao A”) a branch
of Guangdong Electric Power is to be shut down
and retired in advance and certain subsidiaries
are suffering from continuous operation loss
management considers that there are some
indications of impairment of the asset groups
related to generator units of the aforesaid branch
and subsidiaries (basically including fixed assets
intangible assets and construction in progress)
and goodwill.
An independent professional asset appraisal
agency was engaged as an expert to conduct the
impairment assessment on the assets and asset
groups.
On 31 December 2018 management conducted
impairment tests for the aforesaid Shajiao A and
subsidiaries and made a provision for
impairment at the difference between the
recoverable amount and the carrying amount of
the asset groups related to generator units. The
recoverable amount of the asset groups was the
higher of the asset groups’ fair value less disposal
costs and the present value of the estimated
future cash flows. The calculations of the fair
value less disposal costs and the present value of
the estimated future cash flows involve
management’s significant judgements especially
estimates on the expected disposal price
expected disposal costs future sales amount of
electricity on-grid electricity price price of coal
used in power generation capital expenditure
and discount rates used in calculation.
1. Based on our understanding of the
businesses engaged by Guangdong Electric
Power and its subsidiaries (“Yudean Group”)
and the requirements of relevant accounting
standards we evaluated the asset groups
identified by management and how assets
are allocated to each asset group;
2. We understood the competency professional
quality and objectivity of the independent
professional asset appraisal agency engaged
and assessed how management made use of
the agency’s work in the impairment
assessment on the assets and asset groups;
3. Based on our understanding of the
businesses of Yudean Group and the
industry in which Yudean Group operates
we compared with and analysed the
assumptions adopted by management
especially the expected disposal price
expected disposal costs future sales amount
of electricity on-grid electricity price price
of coal used in power generation capital
expenditure and discount rates used in
calculation; we evaluated the reasonableness
of the assumptions on fair value less disposal
costs and the present value of the estimated
future cash flows;
4. We analysed the basis for the adoption of the
cash flows which covered more than 5 years
and assessed the reasonableness therein;
5. We involve our internal experts in assessing
the appropriateness of the discount rate
applied in the calculation of the present
value of future cash flows and whether it
falls within the range applied by other
companies in industry. We also considered
the impact of capital cost of related asset
group on discount rate;
PwC ZT Shen Zi (2019) No. 10033
(Page 3 of 6)
Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d) How our audit addressed the Key Audit
Matter (Cont’d)
(1) Impairment of power related fixed assets
intangible assets construction in progress and
goodwill (Cont’d)
As the carrying amounts of fixed assets
intangible assets construction in progress and
goodwill with indication of impairment are
significant to the consolidated financial
statements of Guangdong Electric Power and
the impairment test involves management’s
significant estimates and judgements
impairment of power related fixed assets
intangible assets construction in progress and
goodwill is identified as a key audit matter.
6. We checked accuracy of the input data and
formulas used in the calculation of the
present value of estimated future cash flows
and evaluated the mathematic accuracy;
7. We conducted sensitivity analysis on
discount rate and other key assumptions
applied by management evaluating how the
changes in key assumptions (by individual or
grouping) will result in different results to
further evaluate if there’s indication that
management is partial in selecting
parameters of key assumptions.We found that management’s assumptions
on impairment of fixed assets intangible
assets construction in progress and
goodwill were supported by appropriate
evidences.
(2) Recognition of deferred tax assets related to
tax losses
Please refer to Note 2(29)(d) and Note 4(16) to
the financial statements.
As at 31 December 2018 the deferred tax assets
recognised by Guangdong Electric Power for the
tax losses from Guangdong Electric Power and
individual subsidiaries amounted to RMB
254800254.
In management’s judgement it is probable that
Guangdong Electric Power and relevant
subsidiaries have sufficient taxable income to
utilize the losses before expiry. The financial
forecast for future periods involves
management’s significant judgements including
future sales amount of electricity on-grid
electricity price price of coal used in power
generation and other operating cost.
1. Based on our understanding of the
businesses of Yudean Group and the
industry in which Yudean Group operates
we assessed the reasonableness of the key
assumptions adopted for the calculation of
the estimated taxable income in future
periods such as future sales amount of
electricity on-grid electricity price price of
coal used in power generation and other
operating cost;
2. With regard to the project of new generator
units covered in the financial forecast we
understood the current progress of the
project and discussed with management
about the reasonableness of the assumption
on the production plan during the
forecasting period;
3. We checked accuracy of the input data and
formulas used in the calculation of the
financial forecast for future periods and
evaluated the mathematic accuracy;
PwC ZT Shen Zi (2019) No. 10033
(Page 4 of 6)
Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d) How our audit addressed the Key Audit
Matter (Cont’d)
(2) Recognition of deferred tax assets related to
tax losses (Cont’d)
As the deferred tax assets related to deductible
losses were significant to the consolidated
financial statements of Guangdong Electric
Power and the financial forecast for future
periods involves management’s significant
estimates and judgements the recognition of the
deferred tax assets related to tax losses was
identified as a key audit matter.
4. We compared the taxable income estimated
by management last year with the actual
result for the year to assess the historical
accuracy of management’s forecast;
5. We conducted sensitivity analysis on key
assumptions applied by management
evaluating how the changes in key
assumptions (by individual or grouping) will
result in different results to further evaluate
if there’s indication that management is
partial in selecting parameters of key
assumptions.We found that management’s assumptions on
recognition of the deferred tax assets related to
deductible losses were supported by appropriate
evidence.Other Information
Management of Guangdong Electric Power is responsible for the other information. The other
information comprises all of the information included in 2018 annual report of Guangdong Electric
Power other than the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If based on the work we have performed we conclude that there is a material
misstatement of this other information we are required to report that fact. We have nothing to
report in this regard.Responsibilities of Management and the Audit Committee for the Financial
Statements
Management of Guangdong Electric Power is responsible for the preparation and fair presentation
of these financial statements in accordance with the CASs and for such internal control as
management determines is necessary to enable the preparation of financial statements that are
free from material misstatement whether due to fraud or error.In preparing these financial statements management is responsible for assessing Guangdong
Electric Power’s ability to continue as a going concern disclosing as applicable matters related to
going concern and using the going concern basis of accounting unless management either intends
to liquidate Guangdong Electric Power or to cease operations or has no realistic alternative but to
do so.The Audit Committee is responsible for overseeing Guangdong Electric Power’s financial reporting
process.
PwC ZT Shen Zi (2019) No. 10033
(Page 5 of 6)
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether these financial statements as a
whole are free from material misstatement whether due to fraud or error and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with CSAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if individually or in the aggregate they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CSAs we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the financial statements whether
due to fraud or error design and perform audit procedures responsive to those risks and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error as fraud may involve collusion forgery intentional omissions
misrepresentations or the override of internal control.? Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
? Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
? Conclude on the appropriateness of management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty exists
related to events or conditions that may cast significant doubt on Guangdong Electric Power’s
ability to continue as a going concern. If we conclude that a material uncertainty exists we
are required to draw attention in our auditor’s report to the related disclosures in these
financial statements or if such disclosures are inadequate to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.However future events or conditions may cause Guangdong Electric Power to cease to
continue as a going concern.
? Evaluate the overall presentation structure and content of the financial statements including
the disclosures and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.? Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within Guangdong Electric Power to express an opinion on the
consolidated financial statements. We are responsible for the direction supervision and
performance of the group audit. We remain solely responsible for our audit opinion.We communicate with the Audit Committee regarding among other matters the planned scope and
timing of the audit and significant audit findings including any significant deficiencies in internal
control that we identify during our audit.
PwC ZT Shen Zi (2019) No. 10033
(Page 6 of 6)
Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence and where applicable
related safeguards.
From the matters communicated with the Audit Committee we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when in extremely rare circumstances we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.PricewaterhouseCoopers Zhong Tian LLP
Shanghai the People’s Republic of China
11 April 2019
Signing CPA
Signing CPA
________________________
Wang Bin
(Engagement Partner)
_______________________
Guo Biyu
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
ASSETS Note
31 December
2018
31 December
2017
1 January
2017
(Restated) (Restated)
Current assets
Cash at bank and on
hand 4(1) 5574382892 4996580490 5184873650
Notes and accounts
receivables 4(2) 3358331949 2826237259 2776061909
Advances to suppliers 4(3) 906261046 826786279 1064822122
Other receivables 4(4) 222976826 223831764 150181074
Inventories 4(5) 1481817270 1527634773 1513153241
Current portion of
non-current assets - 29563053 -
Other current assets 4(6) 617853476 1137582469 882055591
Total current assets 12161623459 11568216087 11571147587
Non-current assets
Available-for-sale
financial assets 4(7) 1565806331 1243633985 1279387994
Long-term receivables 4(8) 89762071 84358065 136075412
Long-term equity
investments 4(9) 6395134754 5801006412 5432637750
Investment properties 4(10) 10810722 8296639 8932237
Fixed assets 4(11) 41157594848 41010868549 41818989750
Construction in progress 4(12) 7740754343 8503556373 6344790617
Intangible assets 4(13) 1863588771 1665784490 1707490221
Goodwill 4(14) 2449886 27486780 27486780
Long-term prepaid
expenses 4(15) 22089179 27007371 34611712
Deferred tax assets 4(16) 448431684 372553039 303929269
Other non-current assets 4(17) 1871616258 694647533 2011524431
Total non-current assets 61168038847 59439199236 59105856173
TOTAL ASSETS 73329662306 71007415323 70677003760
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND OWNERS'
EQUITY Note
31 December
2018
31 December
2017 1 January 2017
(Restated) (Restated)
Current liabilities
Short-term borrowings 4(19) 7526000000 9270000000 5758860000
Notes and accounts
payables 4(20) 3137761522 2516639061 4497731283
Advances from customers 4(21) 343894 1938223 12456360
Employee benefits payable 4(22) 235741179 157738628 144122128
Taxes payable 4(23) 397001706 277285402 326919844
Other payables 4(24) 4152518495 4016769705 3385909718
Current portion of
non-current liabilities 4(25) 2779347654 3012690360 1433644523
Others 4(26) 1107904110 - 1723070000
Total current liabilities 19336618560 19253061379 17282713856
Non-current liabilities
Long-term borrowings 4(27) 18802292664 19465723869 19888172037
Debentures payable 4(28) 838326742 698168211 1900124468
Long-term payables 4(29) 2311513249 1612864252 1944228039
Deferred income 4(30) 133043646 142520263 125650072
Long-term employee
benefits payable 4(31) 122913388 91622907 122832249
Deferred tax liabilities 4(16) 100726841 24188860 37718277
Other non-current liabilities 4(32) 166405569 16405569 39000000
Total non-current liabilities 22475222099 22051493931 24057725142
Total liabilities 41811840659 41304555310 41340438998
Owners' equity
Share capital 4(33) 5250283986 5250283986 5250283986
Capital surplus 4(34) 5102846886 5004250685 5003007478
Other comprehensive
income 4(35) 550010133 137001523 145059015
Surplus reserves 4(36) 7834155143 7590363724 6845001818
Undistributed profits 4(37) 5490006140 5713290735 6135494928
Total equity attributable to
shareholders of the
Company 24227302288 23695190653 23378847225
Minority interests 7290519359 6007669360 5957717537
Total owners' equity 31517821647 29702860013 29336564762
TOTAL LIABILITIES AND
OWNERS' EQUITY 73329662306 71007415323 70677003760
The accompanying notes form an integral part of these financial statements.Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
ASSETS Note
31 December
2018
31 December
2017
1 January
2017
(Restated) (Restated)
Current assets
Cash at bank and on
hand 385577463 429724538 326073538
Notes and accounts
receivables 15(1) 264537475 195462150 212343198
Advances to suppliers 44826500 57189222 79990745
Other receivables 15(2) 375296228 47219599 123657568
Inventories 187058140 151849683 149462926
Other current assets 199679 - 25650427
Total current assets 1257495485 881445192 917178402
Non-current assets
Available-for-sale
financial assets 1565806331 1243633985 1279387994
Long-term receivables 306460000 401460000 335000000
Long-term equity
investments 15(3) 24699820321 23370412702 22896735913
Investment properties 7661041 8296639 8932237
Fixed assets 978022437 1054459265 1049906014
Construction in progress 9394075 49949168 43039781
Intangible assets 86681362 88660312 92152556
Deferred tax assets - 43591562 -
Other non-current assets 356004000 356004000 672504000
Total non-current assets 28009849567 26616467633 26377658495
TOTAL ASSETS 29267345052 27497912825 27294836897
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
COMPANY BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND
OWNERS’ EQUITY
31 December
2018
31 December
2017 1 January 2017
(Restated) (Restated)
Current liabilities
Short-term borrowings 1500000000 1700000000 300000000
Notes and accounts
payables 223827319 221325935 517973144
Employee benefits
payable 53346100 32124015 31813417
Taxes payable 48590195 38907195 9688606
Other payables 98528954 179208669 151317073
Current portion of
non-current liabilities - 1197935476 -
Others 1107904110 - 1216583014
Total current liabilities 3032196678 3369501290 2227375254
Non-current liabilities
Long-term borrowings 1500000000 1500000000 1500000000
Debentures payable 838326742 - 1196982619
Long-term payables 4340898 8775514 -
Deferred income 48362943 53869596 59533388
Long-term employee
benefits payable 32170769 22265631 23445887
Deferred tax liabilities 99461621 - 12508093
Total non-current
liabilities 2522662973 1584910741 2792469987
Total liabilities 5554859651 4954412031 5019845241
Owners' equity
Share capital 5250283986 5250283986 5250283986
Capital surplus 5605794601 5605794601 5605752163
Other comprehensive
income 550010133 137001523 145059015
Surplus reserves 7834155143 7590363724 6845001818
Undistributed profits 4472241538 3960056960 4428894674
Total owners' equity 23712485401 22543500794 22274991656
TOTAL LIABILITIES AND
OWNERS’ EQUITY 29267345052 27497912825 27294836897
The accompanying notes form an integral part of these financial statements.Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note 2018 2017
(Restated)
Revenue 4(38) 27408514178 26643792057
Less: Cost of sales 4(38) (24246716580) (23292288669)
Taxes and surcharges 4(39) (237969926) (243872444)
Selling and distribution expenses 4(40) (25383861) (8223996)
General and administrative expenses 4(41) (688349938) (638017252)
Research and development expenses (5043776) (16980873)
Financial expenses 4(42) (1350485251) (1279255541)
Including: Interest expenses 1310505491 1260094752
Interest income 63471806 65153386
Asset impairment losses 4(43) (251689797) (145754374)
Add: Other income 4(44) 52750847 50872822
Investment income 4(45) 537702970 489086549
Including: Share of profit of associates and
joint ventures 488203462 436407642
Gains/(Losses) on disposal of assets 4(46) 1572097 (4720404)
Operating profit 1194900963 1554637875
Add: Non-operating income 4(47) 89456237 9464974
Less: Non-operating expenses 4(48) (39159530) (9892374)
Total profit 1245197670 1554210475
Less: Income tax expenses 4(49) (335100233) (416489316)
Net profit 910097437 1137721159
Classified by continuity of operations
Net profit from continuing operations 910097437 1137721159
Net profit from discontinued operations - -
Classified by ownership of the equity
Attributable to shareholders of the
Company 474461997 743180431
Minority interests 435635440 394540728
Other comprehensive income net of tax
Attributable to shareholders of the Company 413008610 (8057492)
Other comprehensive income items which
will be reclassified to profit or loss
Gains or losses arising from changes in fair
value of available-for-sale financial
assets 413008610 (8057492)
Total comprehensive income 1323106047 1129663667
Attributable to equity owners of the Company 887470607 735122939
Attributable to minority interests 435635440 394540728
Earnings per share
Basic earnings per share (RMB Yuan) 4(50) 0.09 0.14
Diluted earnings per share (RMB Yuan) 4(50) 0.09 0.14
The accompanying notes form an integral part of these financial statements.Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
COMPANY INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note 2018 2017
(Restated)
Revenue 15(4) 2287899600 2117499891
Less: Cost of sales 15(4) (2133932886) (2019135513)
Taxes and surcharges (17209260) (10188705)
Selling and distribution expenses (1589819) (46598)
General and administrative expenses (117909783) (101505265)
Research and development expenses (2624097) (6871263)
Financial expenses (205073468) (197178583)
Including: Interest expenses 206465168 199610835
Interest income 6208285 4215500
Asset impairment losses 15(5) (154226974) (673578111)
Add: Other income 6712095 7003961
Investment income 15(6) 1517144869 1531007381
Including: Share of profit of associates
and joint ventures 484016449 430233194
Gains/(Losses) on disposal of assets 442300 (1847006)
Operating profit 1179632577 645160189
Add: Non-operating income 4624375 759723
Less: Non-operating expenses (2837734) (1034213)
Total profit 1181419218 644885699
Less: Income tax (expenses)/credits (5383646) 51661211
Net profit 1176035572 696546910
Classified by continuity of operations
Net profit from continuing operations 1176035572 696546910
Net profit from discontinued
operations - -
Other comprehensive income net of tax 413008610 (8057492)
Other comprehensive income items
which will be reclassified to profit or
loss
Gains or losses arising from changes
in fair value of available-for-sale
financial assets 413008610 (8057492)
Total comprehensive income 1589044182 688489418
The accompanying notes form an integral part of these financial statements.Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note 2018 2017
Cash flows from operating activities
Cash received from sales of goods or
rendering of services 31403772367 31015193180
Refund of taxes and surcharges 10386840 4351929
Cash received relating to other
operating activities 4(52)(a) 138132774 149296827
Sub-total of cash inflows 31552291981 31168841936
Cash paid for goods and services (21570119475) (23504495193)
Cash paid to and on behalf of
employees (1758740745) (1689157554)
Payments of taxes and surcharges (1640280936) (1812415045)
Cash paid relating to other operating
activities 4(52)(b) (583214469) (486739641)
Sub-total of cash outflows (25552355625) (27492807433)
Net cash flows from operating
activities 4(53)(a) 5999936356 3676034503
Cash flows from investing activities
Cash received from returns on
investments 335215628 267717887
Net cash received from disposal of
fixed assets intangible assets and
other long-term assets 56236928 4437274
Cash received relating to other
investing activities 4(52)(c) 161670884 -
Sub-total of cash inflows 553123440 272155161
Cash paid to acquire fixed assets
intangible assets and other
long-term assets
(3699868129) (3408163705)
Cash paid to acquire investments (163135200) (147000000)
Sub-total of cash outflows (3863003329) (3555163705)
Net cash flows used in investing
activities (3309879889 ) (3283008544)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED CASH FLOW STATEMENT (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note 2018 2017
Cash flows from financing activities
Cash received from capital
contributions 1305125363 121691869
Including: Cash received from capital
contributions by
minority shareholders
of subsidiaries 1155125363 -
Cash received from borrowings 13592028390 14837423033
Cash received from issuing
debentures and short-term
financing notes 2899200000 -
Cash received from sales and
leaseback 900000000 -
Cash received relating to other
financing activities 4(52)(d) - 42438
Sub-total of cash inflows 18696353753 14959157340
Cash repayments of borrowings (17858853666) (13016778066)
Cash payments for interest
expenses and distribution of
dividends or profits (2390857657) (2019541954)
Cash paid for finance leases (426817014) (504155684)
Cash paid relating to other financing
activities 4(53)(e) (136080000) -
Sub-total of financing cash
outflows (20812608337) (15540475704)
Net cash flows used in financing
activities (2116254584) (581318364)
Effect of foreign exchange rate
changes on cash and cash
equivalents 519 (755)
Net increase/(decrease) in cash and
cash equivalents 4(53)(a) 573802402 (188293160)
Add: Cash and cash equivalents at
the beginning of the year 4996580490 5184873650
Cash and cash equivalents at the end
of the year 4(53)(b) 5570382892 4996580490
The accompanying notes form an integral part of these financial statements.Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
COMPANY CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2018 2017
Cash flows from operating activities
Cash received from sales of goods or rendering of
services 2585719149 2486441357
Refund of taxes and surcharges - 160605
Cash received relating to other operating activities 20154657 15203185
Sub-total of cash inflows 2605873806 2501805147
Cash paid for goods and services (2032356406) (2185038145)
Cash paid to and on behalf of employees (349508525) (318314615)
Payments of taxes and surcharges (82796385) (27918406)
Cash paid relating to other operating activities (61092274) (75445028)
Sub-total of cash outflows (2525753590) (2606716194)
Net cash flows from/(used in) operating
activities 80120216 (104911047)
Cash flows from investing activities
Cash received from disposal of investments 187920000 100000000
Cash received from returns on investments 1313192983 1291979756
Net cash received from disposal of fixed assets
intangible assets and other long-term assets 1016545 208142
Sub-total of cash inflows 1502129528 1392187898
Cash paid to acquire investments (1419713500) (651600000)
Cash paid to acquire fixed assets intangible assets
and other long-term assets (92602608) (96396893)
Sub-total of cash outflows (1512316108) (747996893)
Net cash flows (used in)/from investing activities (10186580) 644191005
Cash flows from financing activities
Cash received from borrowings 3830000000 2580000000
Cash received from issuing debentures and
short-term financing notes 2899200000 -
Cash received relating to other financing activities - 42438
Sub-total of cash inflows 6729200000 2580042438
Cash repayments of borrowings (6189693500) (2380000000)
Cash payments for interest expenses and
distribution of dividends or profits (653587730) (635670641)
Sub-total of cash outflows (6843281230) (3015670641)
Net cash flows used in financing activities (114081230) (435628203)
Effect of foreign exchange rate changes on cash and
cash equivalents 519 (755)
Net (decrease)/increase in cash and cash equivalents (44147075) 103651000
Add: Cash and cash equivalents at the beginning of
the year 429724538 326073538
Cash and cash equivalents at the end of the year 385577463 429724538
The accompanying notes form an integral part of these financial statements.Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note Attributable to equity owners of the Company
Share capital
Capital
surplus
Other
comprehensive
income
Surplus
reserves
Undistributed
profits
Minority
interests
Total owners'
equity
Balance at 1 January 2018 5250283986 5004250685 137001523 7590363724 5713290735 6007669360 29702860013
Movements for the year
ended 31 December 2018
Total comprehensive income - - 413008610 - 474461997 435635440 1323106047
Transactions with minority
shareholders 4(34) - 98596201 - - - 1349463195 1448059396
Profit distribution
Appropriation to surplus
reserves 4(36) - - - 243791419 (243791419) - -
Profit distribution to equity
owners 4(37)(a) - - - - (420022719) (486302545) (906325264)
Others 4(37)(b) - - - - (33932454) (15946091) (49878545)
Balance at 31 December
2018 5250283986 5102846886 550010133 7834155143 5490006140 7290519359 31517821647
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note Attributable to equity owners of the Company
Share capital
Capital
surplus
Other
comprehensive
income
Surplus
reserves
Undistributed
profits
Minority
interests
Total owners'
equity
Balance at 1 January 2017 5250283986 5003007478 145059015 6845001818 6135494928 5957717537 29336564762
Movements for the year ended
31 December 2017
Total comprehensive income - - (8057492) - 743180431 394540728 1129663667
Capital contribution and
withdrawal by shareholders - - - - - 138286300 138286300
Profit distribution
Appropriation to surplus
reserves 4(36) - - - 745361906 (745361906) - -
Profit distribution to equity
owners 4(37)(a) - - - - (420022718) (483389821) (903412539)
Others - 1243207 - - - 514616 1757823
Balance at 31 December 2017 5250283986 5004250685 137001523 7590363724 5713290735 6007669360 29702860013
The accompanying notes form an integral part of these financial statements.Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note Share capital
Capital
surplus
Other
comprehensive
income
Surplus
reserves
Undistributed
profits
Total owners'
equity
Balance at 1 January 2018 5250283986 5605794601 137001523 7590363724 3960056960 22543500794
Movements for the year ended 31
December 2018
Total comprehensive income - - 413008610 - 1176035572 1589044182
Profit distribution
Appropriation to surplus reserves 4(36) - - - 243791419 (243791419) -
Profit distribution to equity owners 4(37)(a) - - - - (420022719) (420022719)
Others - - - - (36856) (36856)
Balance at 31 December 2018 5250283986 5605794601 550010133 7834155143 4472241538 23712485401
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note Share capital Capital surplus
Other
comprehensive
income
Surplus
reserves
Undistributed
profits
Total owners'
equity
Balance at 1 January 2017 5250283986 5605752163 145059015 6845001818 4428894674 22274991656
Movements for the year ended 31
December 2017
Total comprehensive income - - (8057492) - 696546910 688489418
Profit distribution
Appropriation to surplus reserves 4(36) - - - 745361906 (745361906) -
Profit distribution to equity owners 4(37)(a) - - - - (420022718) (420022718)
Others - 42438 - - - 42438
Balance at 31 December 2017 5250283986 5605794601 137001523 7590363724 3960056960 22543500794
The accompanying notes form an integral part of these financial statements.Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 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 and China Guangfa Bank (currently named as Guangdong
Guangkong Group Co. Ltd.). The address of the Company’s registered office and head office is
F33~F36 South Tower Building of Yudean Square on 2nd Tianhe East Road Guangzhou
Guangdong Province the People’s Republic of China (“the PRC”). The Company’s parent
company is Guangdong Energy Group Co. Ltd. (“GEGC” previously Guangdong Province
Yudean Group Co. Ltd.) and its ultimate controlling shareholder is the State-owned Assets
Supervision and Administration Commission of the People’s Government of Guangdong Province.The Company’s RMB ordinary shares (“A-share”) and domestic listed foreign shares (“B-share”)
issued were listed for transactions in Shenzhen Stock Exchange respectively on 26 November
1993 and 28 June 1995. As at 31 December 2018 the total share capital of the Company was
RMB 5250283986 with par value of RMB 1 per share.
The Company and its subsidiaries (collectively referred to as “the Group”) are principally engaged
in the businesses of developing and operating electric power plants in Guangdong Province the
PRC. For the information of the Company’s major subsidiaries included in the consolidation scope
in the current year please refer to Note 6(1).The financial statement have been authorised for issue by the Board of Directors of the Company
on 11 April 2019.
2 Summary of significant accounting policies and accounting estimates
The Group determines its specific accounting policies and accounting estimates on the basis of the
production and operation feature which is reflected in: depreciation of fixed assets (Note 2(14)
impairment of long-term assets (Note 2(19)) and recognition of deferred income taxes (Note
2(25)) etc.
Details of the Group's critical judgements used in determining significant accounting policies are
set forth in Note 2(29).
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standard for Business
Enterprises - Basic Standard and the specific accounting standards and other relevant regulations
issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter
collectively referred to as “the Accounting Standards for Business Enterprises” or “CAS”) and the
disclosure requirements in the Preparation Convention of Information Disclosure by Companies
Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by the China
Securities Regulatory Commission.
As at 31 December 2018 the Group’s net current liabilities amounted to RMB 7175 million. Capital
commitments contracted for by the Group amounted to RMB 8351 million among which the
capital expenditure due within one year amounted to RMB 2927 million. Therefore the Group is to
some extent exposed to liquidity risk.The reason for net current liabilities is that a portion of the Group’s capital expenditure is backed by
short-term borrowings and funds in hand. Management of the Company plans to take the following
measures to ensure that the Group can continuously obtain sufficient working capital to liquidate
debts due within 12 months starting from 31 December 2018 therefore the financial statements
are prepared on a going concern basis.(a) The Group continuously generates profit after its generator sets have successively been
put into production in recent years. Management expects stable cash inflows from
operating activities in the future; and
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(1) Basis of preparation (Cont’d)
(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 2018 the
Group’s available line of credit from financial institutions amounted to approximately RMB
20635 million with RMB 7210 million from Yudean Finance RMB 9225 million from other
commercial banks and financial institutions and remaining financing credit lines of
medium-term notes of RMB 4200 million obtained from China's inter-bank market among
which approximately RMB 5552 million is due before 31 December 2019. The
management has communicated with the financial institutions and hence expected the line
of credit due before 31 December 2019 to renew the term for another 12 months.
(2) Statement of compliance with the Accounting Standard for Business Enterprises
The financial statements of the Company for the year ended 31 December 2018 are in compliance
with the Accounting Standards for Business Enterprises and truly and completely present the
consolidated and the Company’s financial position of the Company as at 31 December 2018 and
their financial performance cash flows and other information for the year then ended.
(3) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency is Renminbi (RMB).
(5) Business combinations
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the absorbing party in a business combination
are measured at the carrying amount. The difference between the carrying amount of the net
assets obtained from the combination and the carrying amount of the consideration paid for the
combination is treated as an adjustment to capital surplus (share premium). If the capital surplus
(share premium) is not sufficient to absorb the difference the remaining balance is adjusted
against retained earnings. Costs directly attributable to the combination are included in profit or
loss in the period in which they are incurred. Transaction costs associated with the issue of equity
or debt securities for the business combination are included in the initially recognised amounts of
the equity or debt securities.(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business
combination are measured at fair value at the acquisition date. Where the cost of the combination
exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets the
difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s
interest in the fair value of the acquiree’s identifiable net assets the difference is recognised in
profit or loss for the current period. Costs directly attributable to the combination are included in
profit or loss in the period in which they are incurred. Transaction costs associated with the issue of
equity or debt securities for the business combination are included in the initially recognised
amounts of the equity or debt securities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(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 profit realised before the
combination date is presented separately in the consolidated income statement.In preparing the consolidated financial statements where the accounting policies and the
accounting periods of the Company and subsidiaries are inconsistent the financial statements of
the subsidiaries are adjusted in accordance with the accounting policies and the accounting period
of the Company. For subsidiaries acquired from business combinations involving enterprises not
under common control the individual financial statements of the subsidiaries are adjusted based
on the fair value of the identifiable net assets at the acquisition date.
All significant intra-group balances transactions and unrealised profits are eliminated in the
consolidated financial statements. The portion of subsidiaries’ shareholders' equity and the portion
of subsidiaries’ net profits and losses and comprehensive incomes for the period not attributable to
the Company are recognised as minority interests net profit attributed to minority interests and
total comprehensive incomes attributed to non-controlling interests and presented separately in
the consolidated financial statements under shareholders' equity net profit and total
comprehensive income respectively. Unrealised profits and losses resulting from the sale of assets
by the Company to its subsidiaries are fully eliminated against net profit attributable to owners of
the parent. Unrealised profits and losses resulting from the sale of assets by a subsidiary to the
Company are eliminated and allocated between net profit attributable to owners of the parent and
net profit attributed to minority interests in accordance with the allocation proportion of the parent
in the subsidiary. Unrealised profits and losses resulting from the sale of assets by one subsidiary
to another are eliminated and allocated between net profit attributable to owners of the parent and
net profit attributed to minority interests in accordance with the allocation proportion of the parent
in the subsidiary.If the accounting treatment of a transaction is inconsistent in the financial statements at the Group
level and at the Company or its subsidiary level adjustment will be made from the perspective of
the Group.
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand deposits that can be readily drawn on
demand and short-term and highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
(8) Foreign currency translation
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the
dates of the transactions.
At the balance sheet date monetary items denominated in foreign currencies are translated into
RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from
these translations are recognised in profit or loss for the current period except for those
attributable to foreign currency borrowings that have been taken out specifically for acquisition or
construction of qualifying assets which are capitalised as part of the cost of those assets.Non-monetary items denominated in foreign currencies that are measured at historical costs are
translated at the balance sheet date using the spot exchange rates at the date of the transactions.The effect of exchange rate changes on cash is presented separately in the cash flow statement.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(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. During the current year The Group's financial assets 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 are non-derivative financial assets that are either designated in
this category or not classified in any of the other categories at initial recognition. Available-for-sale
financial assets are included in other current assets on the balance sheet if management intends
to dispose of them within 1 year (inclusive) after the balance sheet date.(ii) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a
party to the contractual provisions of the financial instrument. For receivables and
available-for-sale financial assets transaction costs that are attributable to acquisition of the
financial assets are included in their initially recognised amounts.
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 amortised
cost using the effective interest method.Gains or losses arising from change in fair value of available-for-sale financial assets are
recognised directly in equity except for impairment losses and foreign exchange gains and losses
arising from translation of monetary financial assets. When such financial assets are
derecognised the cumulative gains or losses previously recognised directly in equity are recycled
into profit or loss for the current period.(iii) Impairment of financial assets
The Group assesses the carrying amounts of financial assets other than those at fair value through
profit or loss at each balance sheet date. If there is objective evidence that a 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 and will affect estimated future cash flows of
financial assets and whose impact can be reliably measured.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont'd)
(a) Financial assets (Cont’d)
(iii) Impairment of financial assets (Cont'd)
The objective evidences for impairment of investments in available-for-sale equity instruments
include significant or non-temporary decline in the fair value of investments in equity instruments.The Group assesses the investments in available-for-sale equity instruments on an individual basis
at each balance sheet date. If the fair value of an investment in equity instruments on the balance
sheet date is lower than its initial investment cost for more than 50% (inclusive) or is continuously
lower than its initial investment cost for more than 1 year (inclusive) then an impairment is
incurred; if the fair value of an investment in equity instruments on the balance sheet date is lower
than its initial investment cost for more than 20% (inclusive) but not yet 50% the Group will
consider other related factors such as price fluctuation rate to determine whether the investment in
equity instruments is impaired. The Group calculates the initial investment cost of available-for-sale
equity instruments using the weighted average method.When an impairment loss on a financial asset carried at amortised cost has occurred the amount
of the impairment loss is provided for at the difference between the asset’s carrying amount and
the present value of its estimated future cash flows (excluding future credit losses that have not
been incurred). If there is objective evidence that the value of the financial asset recovered and the
recovery is related objectively to an event occurring after the impairment was recognised the
previously recognised impairment loss is reversed and the amount of reversal is recognised in
profit or loss.If an impairment loss on available-for-sale financial assets measured at fair value incurs the
cumulative losses arising from the decline in fair value that has been recognised directly in equity
are transferred out from equity into impairment loss. For an investment in debt instrument classified
as available-for-sale on which the impairment loss has been recognised if in a subsequent period
its fair value increases and the increase can be objectively related to an event occurring after the
impairment loss was recognised the previously recognised impairment loss is reversed through
profit or loss for the current period. For an investment in an equity instrument classified as
available-for-sale on which the impairment loss has been recognised the increase in its fair value
in a subsequent period is recognised directly in equity.If an impairment loss on an available-for-sale financial asset measured at cost incurs the amount
of loss is measured at the difference between the asset’s carrying amount and the present value of
estimated future cash flows discounted at the current market rate of return for a similar financial
asset and recorded in profit or loss for the current period. The previously recognised impairment
loss will not be reversed in subsequent periods.(iv) Derecognition of financial assets
A financial asset is derecognised when: (i) the contractual rights to 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 had been recognised
directly in owners’ equity is recognised in profit or loss.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont'd)
(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 mainly comprise other financial liabilities including payables borrowings bonds
payable etc.Payables including accounts payable notes receivable and other payables are recognised initially
at fair value and subsequently measured at amortised cost using the effective interest method.
Borrowings and debentures payable are initially recognised 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; those with maturities over one year but are due within one year (inclusive) as from the
balance sheet date are classified as current portion of non-current liabilities. Others are classified
as non-current liabilities.
A financial liability is derecognised or partly derecognised when the underlying present obligation is
discharged or partly discharged. The difference between the carrying amount of the derecognised
part of the financial liability and the consideration paid is recognised in profit or loss for the current
period.(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the
quoted price in the active market. The fair value of a financial instrument that is not traded in an
active market is determined by using a valuation technique. In valuation the Group adopts
valuation techniques applicable in the current situation and supported by adequate available data
and other information selects inputs with the same characteristics as those of assets or liabilities
considered in relevant transactions of assets or liabilities by market participants and gives priority
to the use of relevant observable inputs. When relevant observable inputs are not available or
feasible unobservable inputs are adopted.
(10) Receivables
Receivables comprise notes and accounts receivables other receivables etc. Accounts receivable
arising from sale of goods or rendering of services are initially recognised at fair value of the
contractual payments from the buyers or service recipients.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Receivables (Cont’d)
(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 separate assessment for
impairment. If there exists 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 criterion for determining "amounts that are individually significant" is: the five largest accounts
receivable and other receivables with individual amount more than RMB 5000000 and all
long-term receivables.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 that the related provision for bad debts is provided on the grouping basis
Receivables with amounts that are not individually significant and those receivables that have been
individually assessed for impairment and have not been found impaired are classified into certain
groupings based on their credit risk characteristics. Provision for bad debts is determined based on
the historical loss experience for groupings of receivables with similar credit risk characteristics
taking into consideration of the current circumstances.The basis of the grouping recognition:
Name of groupings Basis of recognition
Low-risk grouping
The grouping includes receivables from sales of electricity
receivables from government receivables from related
parties supplementary medical insurance fund receivable
etc.
Ageing analysis grouping The grouping refers to the receivables except for the low-risk grouping.
The method of provision for bad debts on the grouping basis is as follows:
Name of groupings Method of provision
Low-risk grouping No provision
Ageing analysis grouping Ageing analysis method
Provision method which is determined based on the groupings with similar credit risk
characteristics is ageing analysis method and provision ratios are listed as follows:
Provision ratio for accounts receivable and other receivables
Within 1 year 1%
1 to 2 years 10%
2 to 3 years 30%
Over 3 years 100%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Receivables (Cont’d)
(c) 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.Provision for bad debts is determined at the excess of the carrying amount of the receivables over
the present value of the future cash flows expected to be derived from the receivables.
(11) Inventories
(a) Classification
Inventories mainly comprise fuel and spare parts and are measured at the lower of cost and net
realisable value.(b) Costing of inventories
Cost of fuel is calculated using the weighted average method. Spare parts are amortised in full
amount when issued for use.(c) Basis for determining net realisable values of inventories and method for making provision for
decline in the value of inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying
amounts of the inventories over their net realisable value. Net realisable value is determined based
on the estimated selling price in the ordinary course of business less the estimated costs
necessary to make the sales and related taxes.(d) The Group adopts the perpetual inventory system.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(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 joint ventures and associates.Subsidiaries are the investees over which the Company is able to exercise control. A joint venture
is a joint arrangement which is structured through a separate vehicle over which the Group has
joint control together with other parties and only has rights to the net assets of the arrangement
based on legal forms contractual terms and other facts and circumstances. An associate is the
investee over which the Group has significant influence by participating in the financial and
operating policy decisions.Investments in subsidiaries are presented in the Company’s financial statements using the cost
method and are adjusted using the equity method when preparing the consolidated financial
statements; investments in associates and joint ventures are accounted for using the equity
method.(a) Determination of investment cost
For long-term equity investments arising from business combination: for long-term equity
investments arising from business combination involving enterprises under common control the
initial investment cost shall be the share of the carrying amount of owners’ equity of the combined
party in the consolidated financial statements of the ultimate controlling party as at the combination
date; for long-term equity investments arising from business combination involving enterprises not
under common control the investment cost shall be the combination cost.Long-term equity investments acquired other than business combination: long-term equity
investments acquired by cash are initially measured at the amount of actually paid; long-term
equity investments acquired by the issuance of equity shares are initially measured at the fair value
of equity shares issued.(b) Subsequent measurement and recognition of profit or loss
For long-term equity investments accounted for using the cost method cash dividends or profit
distribution declared by the investees is 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 that cost; where the initial
investment cost is less than the Group’s share of the fair value of the investee’s identifiable net
assets at the time of acquisition the difference is included in profit or loss for the current period and
the cost of the long-term equity investment is adjusted upwards accordingly.
For long-term equity investments accounted for using the equity method the Group recognises the
investment income according to its share of net profit or loss of the investee. The Group does not
recognise further losses when the carrying amounts of the long-term equity investment together
with any long-term interests that in substance form part of the Group’s net investment in investees
are reduced to zero. However if the Group has obligations for additional losses and the criteria
with respect to recognition of provisions are satisfied the Group continues recognising the
investment losses and the provisions at the amount it expects to undertake. The Group’s share of
the changes in investee’s owner's equity other than those arising from the net profit or loss other
comprehensive income and profit distribution is recognised in capital surplus with a corresponding
adjustment to the carrying amounts of the long-term equity investment. The carrying amount of the
investment is reduced by the Group’s share of the profit distribution or cash dividends declared by
the investees. Unrealised gains or losses on transactions between the Group and its investees are
eliminated to the extent of the Group’s equity interest in the investees based on which the
investment income or losses are recognised. Any losses resulting from transactions between the
Group and its investees which are attributable to asset impairment losses are not eliminated.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(12) Long-term equity investments (Cont’d)
(c) Basis for determining existence of control jointly control or significant influence over investees
Control is the power to govern an investee so as to obtain variable returns from its involvement
with the investee and has the ability to use its power over the investee to affect the amount of the
investor's returns.Joint control is the contractually agreed sharing of control over an arrangement and the decision
of activities relating to such arrangement requires the unanimous consent of the Group and other
parties sharing control.Significant influence is the power to participate in making the decisions on financial and operating
policies of the investee but is not control or joint control over making those policies.(d) Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries joint ventures and
associates are reduced to the recoverable amounts when the recoverable amounts are below their
carrying amounts (Note 2(19)).
(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 property are included in the cost of the investment property
when it is probable that the associated economic benefits will flow to the Group and their costs can
be reliably measured; otherwise the expenditures are recognised in profit or loss for the period in
which they are incurred.The Group adopts the cost model for subsequent measurement of investment properties.
Buildings and land use rights are depreciated or amortised to their estimated net residual values
over their estimated useful lives. The estimated useful lives the estimated net residual values that
are expressed as a percentage of cost and the annual depreciation (amortisation) rates of
investment properties are as follows:
Estimated useful lives
Estimated net residual
values
Annual depreciation
rates
Buildings 22 to 30 years 5% 3.17% to 4.32%
When an investment property is transferred to owner-occupied property it is reclassified to fixed
asset with the carrying amount determined at the carrying amount of the investment property at the
date of the transfer.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(13) Investment properties (Cont’d)
The estimated useful life and the estimated net residual value of an investment property and the
depreciation (amortisation) method applied to the property are reviewed and adjusted as
appropriate at each year-end.
An investment property is derecognised on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.The net amount of proceeds from sales transfer retirement or damage of an investment property
after its carrying amount and related taxes and expenses is recognised in profit or loss for the
current period.
(14) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings power generation equipment motor vehicles and other equipment.
Fixed assets are recognised when it is probable that the related economic benefits will flow to the
Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group
are initially measured at cost at the time of acquisition. The fixed assets contributed by the State
shareholders at the reorganisation of the Company into a corporation are recognised based on the
evaluated amounts as approved by the state-owned assets administration department.Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when
it is probable that the associated economic benefits will flow to the Group and the related cost can
be reliably measured. The carrying amount of the replaced part is derecognised. All the other
subsequent expenditures are recognised in profit or loss for the period in which they are incurred.(b) Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their
estimated 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 useful
lives
Estimated net
residual values
Annual depreciation
rates
Buildings 10 to 50 years 5% 1.90% to 9.50%
Power generation
equipment 5 to 31 years 0% to 5% 3.06% to 20.00%
Motor vehicles 5 to 15 years 0% to 5% 6.33% to 20.00%
Other equipment 5 to 22 years 0% to 5% 4.32% to 20.00%
The estimated useful life and the estimated net residual value of a fixed asset and the depreciation
method applied to the asset are reviewed and adjusted as appropriate at each year-end.(c) The carrying amounts of fixed assets are reduced to the recoverable amounts when the recoverable
amounts are below their carrying amounts (Note 2(19)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(14) Fixed assets (Cont’d)
(d) Basis for identification of fixed assets held under finance leases and related measurement
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a
finance lease. The leased asset is recognised at the lower of the fair value of the leased asset and
the present value of the minimum lease payments. The difference between the recorded amount of
the leased asset and the minimum lease payments is accounted for as unrecognised finance
charge (Note 2(26)(b)).
Fixed assets held under a finance lease is depreciated on a basis consistent with the depreciation
policy adopted for fixed assets that are self-owned. When a leased asset can be reasonably
determined that its ownership will be transferred at the end of the lease term it is depreciated over
its estimated useful life; otherwise the leased asset is depreciated over the shorter period of the
lease term and its estimated useful life.(e) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefits are expected from
its use or disposal. The amount of proceeds from disposals on sale transfer retirement or damage
of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or
loss for the current period.
(15) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs
installation costs borrowing costs that are eligible for capitalisation and other costs necessary to
bring the fixed assets ready for their intended use. Construction in progress is transferred to fixed
assets when the assets are ready for their intended use and depreciation is charged starting from
the following month. The carrying amount of construction in progress is reduced to the recoverable
amount when the recoverable amount is below its carrying amount (Note 2(19)).
(16) Borrowing costs
The borrowing costs that are directly attributable to acquisition and construction of an asset that
needs a substantially long period of time for its intended use commence to be capitalised and
recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have
been incurred and the activities relating to the acquisition and construction that are necessary to
prepare the asset for its intended use have commenced. The capitalisation of borrowing costs
ceases when the asset under acquisition or construction becomes ready for its intended use and
the borrowing costs incurred thereafter are recognised in profit or loss for the current period.
Capitalisation of borrowing costs is suspended during periods in which the acquisition or
construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months
until the acquisition or construction is resumed.The capitalised amount of specific borrowings intended to be used for the acquisition and
construction of qualifying assets is determined by the interest expenses incurred in the period less
interest income of the unused borrowings deposited at bank or investment income from temporary
investments.The capitalised amount of general borrowings intended to be used for the acquisition and
construction of qualifying assets is determined by the weighted average of the excess of
accumulated capital expenditure over capital expenditure of the special borrowings multiplied by
the weighted average effective interest rate of the utilised general borrowings. The effective
interest rate is the rate at which the future cash flows of the borrowings over the expected lifetime
or a shorter applicable period are discounted into the initial recognised amount of the borrowings.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(17) Intangible assets
Intangible assets include land use rights sea use rights software franchise right associated
projects for electricity transmission and transformation microwave engineering and transportation
engineering and are measured at cost. The intangible assets contributed by the state shareholders
at the reorganisation of the Company into a corporation are recognised based on the revaluated
amounts as approved by the state-owned assets administration department.(a) Land use rights and sea use rights
Land use rights are amortised on the straight-line basis over their approved use period of 20 to 70
years. If the acquisition costs of the land use rights and the buildings located thereon cannot be
reasonably allocated between the land use rights and the buildings all of the acquisition costs are
recognised as fixed assets.Sea use rights are amortised on the straight-line basis over their approved useful lives of 50 years.(b) Associated projects for electricity transmission and transformation microwave engineering and
transportation engineering
Associated projects for electricity transmission and transformation and microwave engineering
refer to grid connection project undertaken by the Group for transmitting electricity to Guangdong
Power Grid. From the start of use they are amortised on a straight-line basis over their estimated
beneficial period of 16 years.Transportation engineering is amortised on a straight-line basis over their benefit period of 20
years.(c) Other intangible assets
Fixed assets other than land use rights sea use rights associated projects for electricity
transmission and transformation microwave engineering and transportation engineering are
amortised on a straight-line-basis over the expected useful lives of 2 to 25 years.(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life review of its useful life and amortisation method is
performed at each year-end with adjustment made as appropriate.(e) Impairment of intangible assets
The carrying amount of an intangible asset is reduced to the recoverable amount when the
recoverable amount is below the carrying amount (Note 2(19)).
(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 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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(19) Impairment of long-term assets
Fixed assets construction in progress intangible assets with finite useful lives investment
properties that are measured at cost and long-term equity investments in subsidiaries joint
ventures and associates are tested for impairment if there is any indication that an asset may be
impaired at the balance sheet date. If the result of the impairment test indicates that the
recoverable amount of an asset is less than its carrying amount a provision for impairment and an
impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell
and the present value of the future cash flows expected to be derived from the asset. Provision for
asset impairment is determined and recognised on the individual asset basis. If it is not possible to
estimate the recoverable amount of an individual asset the recoverable amount of a group of
assets to which the asset belongs is determined. A group of assets is the smallest group of assets
that is able to generate independent cash inflows.Goodwill that is separately presented in the financial statements is tested at least annually for
impairment irrespective of whether there is any indication that it may be impaired. In conducting
the test the carrying 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 above asset impairment loss is recognised it will not be reversed for the value recovered
in the subsequent periods.
(20) Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in
exchange for service rendered by employees or for termination of employment relationship which
include short-term employee benefits post-employment benefits termination benefits and other
long-term employee benefits.(a) Short-term employee benefits
Short-term employee benefits include wages or salaries bonus allowances and subsidies staff
welfare premiums or contributions on medical insurance work injury insurance and maternity
insurance housing funds union running costs and employee education costs short-term paid
absences and etc. The short-term employee benefits actually occurred are recognised as a liability
in the accounting period in which the service is rendered by the employees with a corresponding
charge to the profit or loss for the current period or the cost of relevant assets. Non-monetary
benefits are measured at fair value.(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined
benefit plans. Defined contribution plans are post-employment benefit plans under which the Group
pays fixed contributions into a separate fund and will have no obligation to pay further contributions;
and defined benefit plans are post-employment benefit plans other than defined contribution plans.
During the reporting period the Group's post-employment benefits mainly include basic pensions
unemployment insurance and supplementary pensions and all of them belong to the defined
contribution plans.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(20) Employee benefits (Cont'd)
(b) Post-employment benefits (Cont'd)
Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local
authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on
the basic pensions are calculated according to the bases and percentage prescribed by the
relevant local authorities. When employees retire the relevant local authorities are obliged to pay
the basic pensions to them.Supplementary pensions
The Company purchases supplementary pensions for employees and pays insurance premium
according to the policies of GEGC.The amounts based on the above calculations are recognised as liabilities in the accounting period
in which the service has been rendered by the employees with a corresponding charge to the profit
or loss for the current period or the cost of relevant assets.(c) Termination benefits
The Group provides compensation for terminating the employment relationship with employees
before the end of the employment contracts or as an offer to encourage employees to accept
voluntary redundancy before the end of the employment contracts. The Group recognises a
liability arising from compensation for termination of the employment relationship with employees
with a corresponding charge to profit or loss for the current period at the earlier of the following
dates: 1) when the Group cannot unilaterally withdraw an employment termination plan or a
curtailment proposal; 2) when the Group recognises costs or expenses for a restructuring that
involves the payment of termination benefits.
Early retirement benefits
The Group offers early retirement benefits to those employees who accept early retirement
arrangements. The early retirement benefits refer to the salaries and social security contributions
to be paid to and for the employees who accept voluntary retirement before the normal retirement
date prescribed by the State as approved by the management. The Group pays early retirement
benefits to those early retired employees from the early retirement date until the normal retirement
date. The Group accounts for the early retirement benefits in accordance with the treatment for
termination benefits in which the salaries and social security contributions to be paid to and for the
early retired employees from the off-duty date to the normal retirement date are recognised as
liabilities with a corresponding charge to the profit or loss for the current period. The differences
arising from the changes in the respective actuarial assumptions of the early retirement benefits
and the adjustments of benefit standards are recognised in profit or loss in the period in which they
occur.The termination benefits expected to be settled within one year since the balance sheet date are
classified as current liabilities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(21) Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are approved by
the shareholders’ meeting.
(22) Provisions
Provisions for product warranties onerous contracts and etc. are recognised when the Group has a
present obligation it is probable that an outflow of economic benefits will be required to settle the
obligation and the amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the
related present obligation. Factors surrounding a contingency such as the risks uncertainties and
the time value of money are taken into account as a whole in reaching the best estimate of a
provision. Where the effect of the time value of money is material the best estimate is determined
by discounting the related future cash outflows. The increase in the discounted amount of the
provision arising from passage of time is recognised as interest expense.The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect
the current best estimate.The provisions expected to be settled within one year since the balance sheet date are classified
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 stated net of discounts rebates and returns.Revenue is recognised when it’s probable that the economic benefits associated with the
transaction will flow to the Group the related revenue can be reliably measured and the specific
criteria of revenue recognition have been met for each type of the Group’s activities as described
below:
(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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(23) Revenue recognition (Cont’d)
(c) Rendering of services
The amount of revenue is determined in accordance with the fair value of the consideration
received or receivable for rendering of services.The Group provides electric power transactions service and maintenance service to external
parties.
For the electric power transactions service provided by the Group to external parties upon the
receiving of the service revenue is recognised based on the difference between the purchase
price and the selling price of electricity.The Group provides maintenance service to external parties. The related revenue is recognised
using the percentage of completion method with the stage of completion being determined based
on proportion of costs incurred to date to the estimated total costs.(d) Transfer of asset use rights
Interest income is recognised on a time proportion basis with reference to the deposits or the
principal outstanding and the applicable effective interest rate.Rental income from an operating lease is recognised on a straight-line basis over the period of the
lease.
(24) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from the
government including tax return financial subsidy and etc.Government grants are recognised when the grants can be received and the Group can comply
with all attached conditions. If a government grant is a monetary asset it will be measured at the
amount received or receivable. If a government grant is a non-monetary asset it will be measured
at its fair value. If it is unable to obtain its fair value reliably it will be measured at its nominal
amount.Government grants related to assets refer to government grants which are obtained by the Group
for the purposes of purchase construction or acquisition of the long-term assets. Government
grants related to income refer to the government grants other than those related to assets.Government grants related to assets are recorded as deferred income and recognised in profit or
loss on a systemic basis over the useful lives of the assets. Government grants related to income
that compensate the incurred costs expenses or losses are recognised in profit or loss.Government grants related to income that compensate future costs expenses or losses are
recorded as deferred income and recognised in profit or loss in reporting the related costs
expenses or losses; government grants related to income that compensate incurred costs
expenses or losses are recognised in profit or loss directly in the current period. The Group applies
the presentation method consistently to the similar government grants in the financial statements.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Government grants (Cont’d)
Government grants that are related to ordinary activities are included in operating profit otherwise
they are recorded in non-operating income or expenses.
For the policy loans with favourable interest rates the Group records the loans at the actual
amounts and calculates the interests by loan principals and the favourable interest rates.
(25) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the
differences arising between the tax bases of assets and liabilities and their carrying amounts
(temporary differences). Deferred tax asset is recognised for the deductible losses that can be
carried forward to subsequent years for deduction of the taxable profit in accordance with the tax
laws. No deferred tax liability is recognised for a temporary difference arising from the initial
recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the
temporary differences resulting from the initial recognition of assets or liabilities due to a
transaction other than a business combination which affects neither accounting profit nor taxable
profit (or deductible loss). At the balance sheet date deferred tax assets and deferred tax liabilities
are measured at the tax rates that are expected to apply to the period when the asset is realised or
the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences deductible losses
and tax credits to the extent that it is probable that taxable profit will be available in the future
against which the deductible temporary differences deductible losses and tax credits can be
utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in
subsidiaries associates and joint ventures except where the Group is able to control the timing of
reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future. When it is probable that the temporary differences arising from
investments in subsidiaries associates and joint ventures will be reversed in the foreseeable future
and that the taxable profit will be available in the future against which the temporary differences
can be utilised the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities are offset when:
? the deferred tax assets and liabilities are related to the same tax payer within the Group and
the same taxation authority; and
? that tax payer within the Group has a legally enforceable right to offset current tax assets
against current tax liabilities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(26) Leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a
finance lease. An operating lease is a lease other than a finance lease.(a) Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period
of the lease and are either capitalised as part of the cost of related assets or charged as an
expense for the current period.Rental income from an operating lease is recognised on a straight-line basis over the period of the
lease.(b) Finance leases
The leased asset is recognised at the lower of the fair value of the leased asset and the present
value of the minimum lease payments. The difference between the recorded amount of the leased
asset and the minimum lease payments is accounted for as unrecognised finance charge and is
amortised using the effective interest method over the period of the lease. A long-term payable is
recorded at the amount equal to the minimum lease payments less the unrecognised finance
charge.
(27) Held for sale and discontinued operations
A non-current asset or a disposal group is classified as held for sale when all of the following
conditions are satisfied: (1) the non-current asset or the disposal group is available for immediate
sale in its present condition subject only to terms that are usual and customary for sales of such
non-current asset or disposal group; (2) the Group has entered a legally enforceable sales
agreement with other party and obtained relevant approval and the sales transaction is expected
to be completed within one year.Non-current assets (except for financial assets investment properties measured at fair value and
deferred tax assets) that meet the recognition criteria for held for sale are recognised at the
amount equal to the lower of the fair value less costs to sell and the carrying amount and the
excess of the original carrying amount over the fair value less costs to sell is recognised as asset
impairment loss.Such non-current assets and assets and liabilities included in disposal groups classified as held for
sale are classified as current assets and current liabilities respectively and are separately
presented in the balance sheet.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(27) Held for sale and discontinued operations (Cont’d)
A discontinued operation is a component of the Group that either has been disposed of or is
classified as held for sale and is separately identifiable and satisfies one of the following
conditions: (1) it represents a separate major line of business or geographical area of operations;
(2) it is part of a single co-ordinated plan to dispose of a separate major line of business or
geographical area of operations; and (3) it is a subsidiary acquired exclusively with a view to
resale.The net profit from discontinued operations in the income statement includes operating profit or
loss and disposal gains or losses of discontinued operations.
(28) Segment information
The Group identifies operating segments based on the internal organisation structure
management requirements and internal reporting system and discloses segment information of
reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1)
the component is able to earn revenues and incur expenses from its ordinary activities; (2) whose
operating results are regularly reviewed by the Group’s management to make decisions about
resources to be allocated to the segment and to assess its performance and (3) for which the
information on financial position operating results and cash flows is available to the Group. Two or
more operating segments that have similar economic characteristics and satisfy certain conditions
can be aggregated into one single operating segment.
(29) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements applied
based on historical experience and other factors including expectations of future events that are
believed to be reasonable under the circumstances. The critical accounting estimates and key
assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next accounting year are outlined below:
(a) Estimates on provision for impairment of long-term assets
As described in Note 2(19) fixed assets construction in progress intangible assets with finite
useful lives investment properties that are measured at cost and long-term equity investments in
subsidiaries joint ventures and associates are tested for impairment if there’s indications that the
assets may be impaired at the balance sheet date.When assessing whether there’s indication that the above assets are impaired management
mainly evaluate and analyse: (1) whether events affecting asset impairment occurred; (2) whether
the present value of expected cash flows arising from the continuing use or disposal of the asset is
lower than its carrying amount; (3) whether the assumptions used in estimating the present value
of future cash flows is appropriate.Relevant assumptions adopted by the Group to determine impairment e.g. changes in
assumptions on discount rate and growth rate used to calculate the present value of future cash
flows may have material impact on the present value used in the impairment test and cause
impairment in the above-mentioned long-term assets of the Group.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(29) Critical accounting estimates and judgements (Cont’d)
(b) Useful lives and residual value of fixed assets
The useful lives and residual value of fixed assets are determined by management after taking
into account their durability and past maintenance records based on the industry practice. The
useful life of the assets is reviewed at each year-end with appropriate adjustments made
accordingly.
Any changes in the useful lives and residual value of fixed assets may have significant impact on
the Group’s net profit.(c) Income taxes
The Group is subject to income taxes in numerous jurisdictions. There are some transactions and
events for which the ultimate tax determination is uncertain during the ordinary course of
business. Significant judgement is required from the Group in determining the provision for
income taxes in each of these jurisdictions. Where the final tax outcome of these matters is
different from the amounts that were initially recorded such differences will impact the income tax
and deferred tax provisions in the period in which such determination is made.(d) Deferred tax assets
Whether to recognise the deferred tax assets arising from deductible losses and deductible
temporary differences largely depends on the judgement of management on whether sufficient
future taxable income that can be used to deduct deductible losses and deductible temporary
differences can be obtained in the future periods. A lot of judgements and estimates are required
to calculate the future taxable income and tax planning strategies and the influence of overall
economic environment shall be considered at the same time. Different judgements and estimates
will impact on the recognition and amount of deferred tax assets.When it is estimated that sufficient future taxable income against which deductible losses and
temporary differences can be utilised can be obtained in the future periods deferred tax assets
are recognised to the extent that it is probable that taxable income will be available in the future
against which deductible losses and temporary differences can be utilised using tax rates
applicable in the period when the asset would be recovered. In determining the amount of
deferred tax assets the Group exercises judgements about the estimated timing and amount of
future taxable income and about 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 profits will affect the amount of deferred tax assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies
In 2018 the Ministry of Finance released the Circular on the Amendment to the Formats of Corporate Financial Statements for the Year of 2018
(Cai Kuai [2018] No. 15) and the interpretation. The financial statements are prepared in accordance with the above circular with restating
comparative figures of 2017 and without impact to net profit for 2017 net assets at 31 December 2017 and the cash flow statement for the year
ended 31 December 2017 of the Group and the Company. The impacts on the financial statements are as follows:
(a) Impacts on consolidated balance sheet and income statement are as follows:
The nature and the reasons of the
changes in accounting policies
The line items affected The amounts affected
31 December 2017 1 January 2017
The Group grouped notes receivable and
accounts receivable as notes and
accounts receivables.
Accounts receivable (2826237259) (2776061909)
Notes receivable - -
Notes and accounts
receivables 2826237259 2776061909
The Group grouped interests receivable
dividends receivable and other
receivables as other receivables.Interests receivable (14923771) (16681118)
Dividends receivable - -
Other receivables 14923771 16681118
The Group grouped fixed assets and
fixed assets pending for disposal as fixed
assets.
Fixed assets 14662233 4304229
Fixed assets pending for
disposal (14662233) (4304229)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies (Cont’d)
(a) Impacts on consolidated balance sheet and income statement are as follows (Cont’d):
The nature and the reasons of the
changes in accounting policies
The line items affected The amounts affected
31 December 2017 1 January 2017
The Group grouped construction in
progress and construction materials in
construction in progress.
Construction in progress 35869033 1496854
Construction materials (35869033) (1496854)
The Group grouped notes payable and
accounts payable as notes and accounts
payables.
Accounts payable (2219027261) (3167250446)
Notes payable (297611800) (1330480837)
Notes and accounts payables 2516639061 4497731283
The Group grouped interests payable
dividends payable and other payables as
other payables.Interests payable (98553104) (83648793)
Dividends payable (9703930) (9703930)
Other payables 108257034 93352723
The Group grouped long-term payables
and payables for specific projects as
long-term payables.Long-term payables 64605011 26675385
Payables for specific projects (64605011) (26675385)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies (Cont’d)
(a) Impacts on consolidated balance sheet and income statement are as follows (Cont’d):
The nature and the reasons of the
changes in accounting policies
The line items affected The amounts affected
2017
The Group presented research and
development expenses separately from
general and administrative expenses.Research and development
expenses 16890873
General and administrative
expenses (16890873)
(b) Impacts on company balance sheet and income statement are as follows:
The nature and the reasons of the
changes in accounting policies
The line items affected The amounts affected
31 December 2017 1 January 2017
The Company grouped notes receivable
and accounts receivable as notes and
accounts receivables.
Accounts receivable (195462150) (212343198)
Notes receivable - -
Notes and accounts
receivables 195462150 212343198
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies (Cont’d)
(b) Impacts on company balance sheet and income statement are as follows (Cont’d):
The nature and the reasons of the
changes in accounting policies
The line items affected The amounts affected
31 December 2017 1 January 2017
The Company grouped interests
receivable dividends receivable and
other receivables as other receivables.Interests receivable (1698504) (723819)
Dividends receivable (17536791) -
Other receivables 19235295 723819
The Company grouped notes payable
and accounts payable as notes and
accounts payables.
Accounts payable (221325935) (517973144)
Notes payable - -
Notes and accounts payables 221325935 517973144
The Company grouped interests payable
dividends payable and other payables as
other payables.Interests payable (49765772) (48091022)
Dividends payable (9703930) (9703930)
Other payables 59469702 57794952
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies (Cont’d)
(b) Impacts on company balance sheet and income statement are as follows (Cont’d):
The nature and the reasons of the
changes in accounting policies
The line items affected The amounts affected
31 December 2017 1 January 2017
The Company grouped long-term
payables and payables for specific
projects as long-term payables.Long-term payables 8775514 -
Payables for specific projects
(8775514) -
2017
The Company presented research and
development expenses separately from
general and administrative expenses.Research and development
expenses 6871263
General and administrative
expenses (6871263)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category Tax base Tax rate/
levying rate
Value-added tax
(“VAT”) (a)
(i) Taxable value added amount (Tax payable is
calculated using the taxable sales amount
multiplied by the applicable tax rate less
deductible VAT input of the current period)
6% 10% and 16%
(ii) Revenue from hydropower sales 3%
City maintenance
and construction
tax
The payment amount of VAT and consumption
tax
5% to 7%
Educational
surcharge
Amount of VAT paid 3%
Local educational
surcharge
Amount of VAT paid 2%
Enterprise income
tax (b)
Taxable income 15% 20% and
25%
House property tax The rental income or residual value of the property 12% and 1.2%
(a) Pursuant to the Circular on Adjustment of Tax Rate of Value Added Tax (Cai Shui [2018] No. 32)
and related regulations jointly issued by the Ministry of Finance and the State Administration of
Taxation the applicable tax rates of revenue arising from sales of electricity sales of by-products
and maintenance and repair services and revenue arising from sales of heat energy of all
subsidiaries of the Company are 16% and 10% respectively from 1 May 2018 while they were
17% and 11% respectively before then. The Group’s revenue from entrusted loans between
companies and training service is subject to VAT at the rate of 6%.Pursuant to Notice on the Policy of Streamlining and Combination of Value-Added Tax Levy
Rates jointly issued by the Ministry of Finance and the State Administration of Taxation revenue
from sales of electricity generated from small hydropower units at the county level or below is
subject to VAT at the rate of 3%. Three small hydropower plants of Lincang Yudean Energy Co.Ltd. (“Lincang Energy”) a subsidiary of the Company are subject to VAT at the rate of 3%.(b) Except for the subsidiaries Guangdong Yudean Dianbai Wind Power (“Dianbai Wind Power”)
Guangdong Yudean Qujie Wind Power Co. Ltd. (“Qujie Wind Power”) Guangdong Yudean
Leizhou Wind Power Co. Ltd. (“Leizhou Wind Power”) Zhanjiang Electric Co. Ltd. (“Zhanjiang
Electric”) and Zhanjiang Yuheng Electric Co. Ltd. (“Yuheng Electric”)(see Note 3(2)) theapplicable tax rate for the Company and its subsidiaries is 25%.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont’d)
(2) Tax preference
(a) Pursuant to the approval documents (Cai Shui [2008] No. 46 and Guo Shui Fa [2009] No. 80)
Dianbai Wind Power Qujie Wind Power and Leizhou Wind Power are exempted from enterprise
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 and Qujie Wind Power posted profits for the first time in 2016 and Leizhou Wind
Power posted profits for the first time in 2017 the applicable enterprise income tax rates for
Dianbai Wind Power Qujie Wind Power and Leizhou Wind Power are 0% 0% and 0% in 2018
(2017: 0% 0% and 0%) respectively.
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”) Guangdong Yudean Xuwen Wind Power
Electricity Co. Ltd. (“Xuwen Wind Power”) Dianbai Wind Power Qujie Wind Power Leizhou
Wind Power and Huilai Wind Power will be refunded immediately in accordance with the Notice
Concerning Value Added Tax Policies on Wind Power Generation (Cai Shui [2015] No. 74).
(b) In 2008 Zhanjiang Electric a subsidiary of the Company was granted a High-tech Enterprise
Certificate (Certificate No.: GR201744007248) by the Department of Science & Technology of
Guangdong Province Department of Finance of Guangdong Province the State Taxation
Bureau of Guangdong Province and the Local Taxation Bureau of Guangdong Province on 11
December 2017. The certificate is valid for three years. Under Article 28 of the Enterprise Income
Tax Law of the People’s Republic of China and the circular ([2017] No. 24) issued by the State
Administration of Taxation the tax prefenrence can be requested as of the year of the issue of
the high-tech enterprise certificate and the income tax rate applicable to Zhanjiang Electric for
2018 is 15% (2017: 15%).
(c) Pursuant to the approval documents (Cai Shui [2018] No. 77) Yuheng Electric was recognised
as a small enterprise with low profits since its annual taxable income was less than RMB 1
million so the amount of taxable income was reduced to 50% of its income and was subject to
enterprise income tax at the tax rate of 20%. Therefore the applicable enterprise income tax rate
for Yuheng Electric is 20% (2017: 25%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
31 December 2018 31 December 2017
Cash on hand 31413 37745
Cash at bank 592232767 844241939
Deposits with Yudean Finance (b) 4978118712 4152300806
Other cash balances (c) 4000000 -
5574382892 4996580490
(a) As at 31 December 2018 the Group had no offshore deposit (31 December 2017: Nil).(b) Deposits with Yudean Finance refer to the deposits placed with Yudean Finance(Note 8(6)).Yudean Finance is a financial institution established with the approval of the People’s Bank of
China. Both the Company and Yudean Finance are controlled by GEGC.
(c) As at 31 December 2018 other cash balances amounted to RMB 4000000 (31 December 2017:Nil) and represented deposits of Huizhou Pingdian Comprehensive Energy Co. Ltd. (“Pingdian
Comprehensive”) a subsidiary of the Group for the purpose of applying for performance
guarantees for admission to sales of electricity at Guangdong Power Exchange Centre.
(2) Notes and accounts receivables
31 December 2018 31 December 2017
Accounts receivable (a) 3358331949 2826237259
(a) Accounts receivable
31 December 2018 31 December 2017
Accounts receivable 3358489658 2826237259
Less: Provision for bad debts (157709) -
3358331949 2826237259
(i) The ageing of accounts receivable is analysed as follows:
31 December 2018 31 December 2017
Within 1 year (inclusive) 3358257370 2815185386
1 to 2 years (inclusive) 144000 11051873
2 to 3 years (inclusive) 88288 -
3358489658 2826237259
As at 31 December 2018 there were no accounts receivable overdue but unimpaired (31
December 2017: Nil).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(2) Notes and accounts receivables (Cont’d)
(a) Accounts receivable (Cont’d)
(ii) Accounts receivable are analysed by categories as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount % of total balance Amount Provision % Amount % of total balance Amount Provision %
With amounts that are individually significant
and that the related provision for bad debts is
provided on the individual basis - - - - - - - -
With amounts that the related provision for bad
debts is provided on the grouping basis
Low-risk grouping 3345279051 99.61% - - 2826237259 100.00% - -
Ageing analysis grouping 13210607 0.39% (157709) 1.19% - - - -
With amounts that are not individually
significant but that the related provision for
bad debts is provided on the individual basis - - - - - - - -
3358489658 100.00% (157709) 0.01% 2826237259 100.00% - -
(iii) Accounts receivable that the related provision for bad debts is provided on grouping basis using the ageing analysis method are analysed as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount Amount Provision % Amount Amount Provision %
Within 1 year (inclusive) 13122319 (131223) 1.00% - - -
2 to 3 years (inclusive) 88288 (26486) 30.00% - - -
13210607 (157709) 1.19% - - -
(iv) The provision for bad debts in the current year was RMB 157709 (2017: Nil). There was no recovered or reversed provision for bad debts and there was
no accounts receivable written off (2017: Nil).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(2) Notes and accounts receivables (Cont’d)
(a) Accounts receivable (Cont’d)
(v) As at 31 December 2018 the five largest amounts of accounts receivable aggregated by debtors
were analysed as follows:
Name of entity Amount
Amount of
provision for
bad debts
Percentage in
total balance of
accounts
receivable
Total amount of five largest accounts
receivable 3319367108 - 98.84%
As at 31 December 2018 the Group had accounts receivable with a carrying amount of RMB
396323295 (31 December 2017: RMB 402847793). These accounts receivable together with the
right to collect electric charges were pledged to banks to obtain long-term borrowings of RMB
2765356586 including RMB 213259115 due within one year (31 December 2017: RMB
2698978707 including RMB 209579575 due within one year) (see Note 4(25)(a) and (27)(a)).
(3) Advances to suppliers
31 December 2018 31 December 2017
Advances to suppliers 906566047 826786279
Less: Provision for bad debts (305001) -
906261046 826786279
(a) The ageing of advances to suppliers is analysed below:
31 December 2018 31 December 2017
Amount % of total balance Amount % of total balance
Within 1 year 898864235 99.16% 825247024 99.81%
1 to 2 years 6388849 0.70% 963292 0.12%
2 to 3 years 756896 0.08% 8640 0.00%
Over 3 years 556067 0.06% 567323 0.07%
906566047 100.00% 826786279 100.00%
As at 31 December 2018 advances to suppliers with ageing over one year amounted to RMB
7701812 (31 December 2017: RMB 1539255) mainly including prepayments for spare parts and
materials.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(3) Advances to suppliers (Cont’d)
(b) Provision for bad debts in the current year
31 December 2018 31 December 2017
Opening balance - -
Increase in the current year (305001) -
Ending balance (305001) -
(c) As at 31 December 2018 the five largest advances to suppliers collected by debtors were analysed
as follows:
Amount % of total balance
Total of the five largest advances to
suppliers 804763113 88.80%
(4) Other receivables
31 December 2018 31 December 2017
Supplementary medical insurance fund
receivable 74967255 -
Receivables from sales of by-products 61562471 140445384
Land deposits receivable 23446000 23446000
Interests receivable 18856569 14923771
Reserves receivable 8207879 6996288
Project expenses paid on behalf 5423464 6236199
Government grants receivable 5208887 6474557
Others 34749156 32156092
232421681 230678291
Less: Provision for bad debts (9444855) (6846527)
222976826 223831764
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Other receivables (Cont’d)
(a) The ageing of other receivables is analysed as follows:
31 December 2018 31 December 2017
Within 1 year 188702751 213641978
1 to 2 years 33895584 7803912
2 to 3 years 2033130 841160
Over 3 years 7790216 8391241
232421681 230678291
The ageing starts from the date when other receivables are recognised.
As at 31 December 2018 other receivables of RMB 35526080 (31 December 2017: RMB
8300017) were past due but based on the analysis of the debtors’ financial status and previous
credit record no individual provisions for bad debts were provided nevertheless the collective
provisions were provided after assessment on grouping basis accordingly. The past-due ageing of
these other receivables was analysed as follows:
31 December 2018 31 December 2017
1 to 2 years 33517042 5912738
2 to 3 years 1953507 696885
Over 3 years 55531 1690394
35526080 8300017
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Other receivables (Cont’d)
(b) Other receivables are analysed by categories as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount
% of total
balance Amount Provision % Amount
% of total
balance Amount Provision %
With amounts that are individually
significant and that the related
provision for bad debts is provided on
the individual basis - - - - - - - -
With amounts that the related provision
for bad debts is provided on the
grouping basis
Low-risk grouping 183079035 78.77% - - 223831764 97.03% - -
Ageing analysis grouping (c) 42334934 18.21% (2437143) 5.76% - - - -
With amounts that are not individually
significant but that the related
provision for bad debts is provided on
the individual basis 7007712 3.02% (7007712) 100.00% 6846527 2.97% (6846527) 100.00%
232421681 100.00% (9444855) 4.06% 230678291 100.00% (6846527) 2.97%
(c) Accounts receivable that the related provision for bad debts is provided on grouping basis using the ageing analysis method are analysed as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount Amount Provision % Amount Amount Provision %
Within 1 year 32302549 (323025) 1.00% - - -
1 to 2 years 7216752 (721675) 10.00% - - -
2 to 3 years 2033130 (609940) 30.00% - - -
Over 3 years 782503 (782503) 100.00% - - -
42334934 (2437143) 5.76% - - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Other receivables (Cont’d)
(d) Provision for bad debts in the current year
31 December 2018 31 December 2017
Opening balance (6846527) (6423698)
Increase in the current year (2598328) (422829)
Ending balance (9444855) (6846527)
(e) As at 31 December 2018 the five largest other receivables by debtors were analysed as follows:
Nature Balance Ageing
% of total
balance
Provision for bad
debts
Taikang Pension Company
Limited Guangdong Branch
(“Taikang Pension”)
Supplementary
medical insurance
fund receivable 74967255 Within 1 year 32.25% -
Guangdong Yudean
Environmental Protection
Co. Ltd. (“Yudean
Environmental”)
Receivables from
sales of by-products 54456181 Within 1 year 23.43% -
Maoming Port Bohe New Port
Construction Headquarters
Office
Land deposits
receivable 23446000 1 to 2 years 10.09% -
Huilai Taxation Bureau
Government grants
receivable 5147593
Within 2
years 2.21% -
Guangzhou Huading Building
Materials Co. Ltd.Receivables from
sales of by-products 2803643 Over 3 years 1.21% (2803643)
160820672 69.19% (2803643)
(f) As at 31 December 2018 the Group's government grants recognised at amounts receivable were
analysed as follows:
Government grants Balance Ageing
Estimated time amount and basis of
collection
Huilai Taxation Bureau
Immediate refund of
VAT 5147593 Within 2 years
Expected to be fully recovered by
June 2018
Xuwen Taxation Bureau
Immediate refund of
VAT 61294 Within 1 year
Expected to be fully recovered by
June 2018
5208887
(5) Inventories
(a) Inventories are summarised by categories as follows:
31 December 2018 31 December 2017
Ending
balance
Provision for
decline in the
value of
inventories
Carrying
amount
Ending
balance
Provision for
decline in the
value of
inventories
Carrying
amount
Fuel 780978630 (1429525) 779549105 807187691 - 807187691
Spare parts 697094406 (18128209) 678966197 714566924 (17420859) 697146065
Others 23301968 - 23301968 23301017 - 23301017
1501375004 (19557734) 1481817270 1545055632 (17420859) 1527634773
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Inventories (Cont'd)
(b) Provision for decline in the value of inventories is analysed as follows:
31 December 2017
Increase in the
current year
Decrease in the
current year 31 December 2018
Spare parts (17420859) (707350) - (18128209)
Fuel - (1429525) - (1429525)
(17420859) (2136875) - (19557734)
As at 31 December 2018 the Group made provision for decline in the value of spare parts because
some spare parts were rendered useless and impaired as a result of technology upgrade and it
made provision for decline in the value of fuel because the heavy oil could not be used as fuel as
before and was impaired due to the outage of heating boilers at Phase I of Guangdong Huizhou
Natural Gas Power Co. Ltd. (“Huizhou Natural Gas”) a subsidiary of the Company.(c) The Group did not have any reversal or write-off of provision for decline in the value of inventories
in 2018.
(6) Other current assets
31 December 2018 31 December 2017
VAT to be deducted 613635937 1106133996
Prepaid income tax 4181711 31389365
Others 35828 59108
617853476 1137582469
(7) Available-for-sale financial assets
31 December 2018 31 December 2017
Measured at fair value
- Available-for-sale equity instruments (a) 1139806331 408992985
Measured at cost
- Available-for-sale equity instruments (b) 426000000 859651686
1565806331 1268644671
Less: Provision for impairment - (25010686)
1565806331 1243633985
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Available-for-sale financial assets (Cont’d)
(a) Available-for-sale financial assets summarised by relevant information:
Available-for-sale financial assets measured at fair value:
31 December 2018 31 December 2017
Available-for-sale equity instruments
- Fair value 1139806331 408992985
- Cost 435463816 255328616
- Accumulated amount included in other
comprehensive income 704342515 153664369
- Accumulated provision for impairment - -
(i) As at 31 December 2018 the Company held 12600000 tradable A shares in Shenzhen Energy
with fair value of RMB 66150000 and the investment cost was RMB 15890628. The investment
was stated at fair value with reference to the market price. During the year losses at fair value
amounted to RMB 10206000 (2017: losses of RMB 10206000) and other comprehensive
income was adjusted downwards accordingly.(ii) As at 31 December 2018 the Company held 55532250 tradable A shares in Shenergy with fair
value of RMB 270997380 and the investment cost was RMB 235837988. The investment was
stated at fair value with reference to the market price. During the year losses at fair value
amounted to RMB 54421605 (2017: losses of RMB 555323) and other comprehensive income
was adjusted downwards accordingly.(iii) As at 31 December 2018 the Company held 1800000 shares of GMG International Tendering
Co. Ltd. traded at the National Equities Exchange and Quotations system with fair value of RMB
3618000 and the investment cost was RMB 3600000. The investment was stated at fair value
with reference to the market price. During the year losses at fair value amounted to RMB
3600000 (2017: gains of RMB 18000) and other comprehensive income was adjusted
downwards accordingly.(iv) Pursuant to the Proposal on Involvement in Capital and Share Increase of Shenzhen Capital
Group Co. Ltd. approved by the Board of Directors in September 2018 the Company was
permitted to make a capital injection of RMB 213034000 to Shenzhen Capital Group Co. Ltd.
(“SCG”) at its original proportion of shareholding. A capital injection of RMB 65135200 was made
in 2018. A revaluation of fair value has been conducted for the equity investment in SCG with
reference to the valuation upon capital injection. The equity investment is subsequently measured
using the fair value model instead of the cost model as of the date of capital injection. As at 31
December 2018 the fair value of the equity that the Company held in SCG amounted to RMB
799040951 and the investment cost was RMB 180135200. During the year gains at fair value
amounted to RMB 618905751 (2017: Not applicable) and other comprehensive income was
adjusted upwards accordingly.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Available-for-sale financial assets (Cont’d)
(b) Available-for-sale financial assets measured at cost:
31 December
2017
Transfer out in
the current year
31 December
2018
% of
shareholding in
investees
Cash dividend
in the current
year
Available-for-sale equity instruments
- cost
- SCG (Note 4(7)(a)(iv)) 115000000 (115000000) - 3.67% 16978500
- Sunshine Insurance Group
Corporation 356000000 - 356000000 3.38% 24500000
- South Sea Wind Electricity
Development Co. Ltd. 70000000 - 70000000 10.00% -
- Weixin Yuntou Yudean Zhaxi
Energy Co. Ltd. (“WeixinYuntou”)(i) 318651686 (318651686) - 19.55% -
859651686 (433651686) 426000000 41478500
Available-for-sale equity instruments
- provision for impairment
- Weixin Yuntou (i) (25010686) 25010686 -
834641000 (408641000) 426000000
The available-for-sale financial assets measured at cost mainly include the unlisted equity investments
held by the Company which are not quoted in an active market and whose fair value cannot be reliably
measured as the variability in the range of reasonable fair value measurements is significant and the
probabilities of the various estimates used to determine the fair value cannot be reasonably determined.(i) In April 2018 Yunnan Provincial Power Investment Co. Ltd. (“YPI”) the controlling shareholder of
Weixin Yuntou received 2.49% equity of Weixin Yuntou held by Yunnan Bureau of Coalfield Geology.The Company has significant influence over the operation of Weixin Yuntou after the equity structure is
altered. The equity investment is accounted for as long-term equity investments in associates accounted
for using the equity method as of the date of equity structure alteration. At the date of transfer the fair
value of the equity assessed by Weixin Yuntou was RMB 288918092 and the investment loss
recognised upon transfer was RMB 4722908.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Long-term receivables
31 December 2018 31 December 2017
Item
Ending
balance
Provision for
bad debts
Carrying
amount
Ending
balance
Provision for
bad debts
Carrying
amount
Discount rate
range
Sales and leaseback
deposits 89762071 - 89762071 84358065 - 84358065
5.40% to
7.30%
As at 31 December 2018 the Group’s long-term receivables mainly represented the present value
of RMB 100000000 of deposits paid for fixed assets held under sales and leaseback (31
December 2017: RMB 130000000).
(9) Long-term equity investments
31 December 2018 31 December 2017
Joint ventures (a) 602584896 605678402
Associates (b) 5817560544 5195328010
6420145440 5801006412
Less: Provision for impairment of long-term
equity investments (25010686) -
6395134754 5801006412
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Long-term equity investments (Cont’d)
(a) Joint ventures
Movements for the current year
31 December
2017
Increase in
investment
Decrease in
investment
Share of net
profit/(loss)
under equity
method
Share of other
comprehensive
income
Share of other
changes in
equity
Cash
dividends or
profits
declared
Provision for
impairment Others
31 December
2018
Provision for
impairment at
the end of the
year
Guangdong Electric
Power Industry Fuel
Co. Ltd. (“Industry
Fuel”) 605678402 - - 72400480 - - (75493986) - - 602584896 -
The equity-related information of the joint ventures is set out in Note 6(2).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Long-term equity investments (Cont’d)
(b) Associates
Movements for the current year
31 December
2017
Increase in
investment
Transfer from
available-for-sa
le financial
assets
Share of net
profit/(loss)
under equity
method
Share of other
comprehensive
income
Share of
other
changes in
equity
Cash dividends
or profits
declared
Provision
for
impairment
Transfer from
provision for
impairment of
available-for-s
ale financial
assets
31 December
2018
Provision for
impairment at
the end of the
year
Shanxi Yudean Energy Co. Ltd.(“Shanxi Yudean Energy”) 1216441246 - - 227748560 - - (4000000) - - 1440189806 -
Yudean Finance 700701205 - - 85475612 - - (57221066) - - 728955751 -
Guangdong Guohua Yudean
Electric Co. Ltd. (“Taishan
Electric”) 1961475609 - - 129315387 - - (121582000) - - 1969208996 -
Guangdong Yudean Shipping
Co. Ltd. (“Yudean Shipping”) 941757936 - - 1822952 - - (8469538) - - 935111350 -
Guangdong Yudean WesternInvestment Co. Ltd. (“WesternInvestment”) 153696713 - - (18044364) - - - - - 135652349 -
Huaneng Shantou Wind Power
Co. Ltd. (“Huaneng ShantouWind Power”) 62750674 - - 4187013 - - (12672500) - - 54265187 -
Yangshan Jiangkeng Hydropower
Co. Ltd. (“YangshanJiangkeng”) 5673426 - - 874094 - - (852810) - - 5694710 -
Yangshan Zhongxinkeng Electric
Co. Ltd. (“YangshanZhongxinkeng”) 7509371 - - 1000767 - - (701312) - - 7808826 -
Guangdong Yudean Property
Self-Insurance Co. Ltd.(“Yudean PropertySelf-Insurance”)(i) 145321830 98000000 - 14704347 - - - - - 258026177 -
Weixin Yuntou (Note 4(7)(b)(i)) - - 313928778 (31281386) - - - - (25010686) 257636706 (25010686)
5195328010 98000000 313928778 415802982 - - (205499226) - (25010686) 5792549858 (25010686)
(i) In April 2018 the Company made an additional investment of RMB 98000000 to Yudean Property Self-Insurance keeping an investment proportion of 49% in
total investment (31 December 2017: 49%).The equity-related information of the associates is set out in Note 6(2).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(10) Investment properties
Buildings
Cost
- Opening balance 20135165
- Additions in the current year 3215518
- Ending balance 23350683
Accumulated depreciation
- Opening balance (11838526)
- Increase in the current year (701435)
- Ending balance (12539961)
Carrying amount
- Ending balance 10810722
- Opening balance 8296639
(11) Fixed assets
31 December 2018 31 December 2017
Fixed assets (a) 41146148282 40996206316
Fixed assets pending for disposal (b) 11446566 14662233
41157594848 41010868549
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(a) Fixed assets
Buildings
Power generation
equipment Motor vehicles Other equipment Total
Cost
31 December 2017 18246875839 55080195082 609324301 1272376920 75208772142
Increase in the current year
Purchase 57515088 39349566 18835522 25237123 140937299
Transfer from
construction in
progress (iii) 346590776 3249655415 - 25039923 3621286114
Donations received 25212942 3533292 1149501 513684 30409419
Adjustment for project
settlement differences - (49198552) - - (49198552)
Disposals and scrap in the
current year (77513238) (166439861) (27326297) (10040460) (281319856)
31 December 2018 18598681407 58157094942 601983027 1313127190 78670886566
Accumulated depreciation
31 December 2017 (6130373600) (25913014678) (451460572) (831112010) (33325960860)
Increase in the current year
Provision (ii) (416039523) (2873127677) (19937352) (58909187) (3368013739)
Decrease in the current
year
Disposal and scrap 26067496 86125573 25690061 8385647 146268777
31 December 2018 (6520345627) (28700016782) (445707863) (881635550) (36547705822)
Provision for impairment
31 December 2017 (117320986) (764055146) (1233218) (3995616) (886604966)
Increase in the current year
Provision (iv) (20472216) (130232756) (422917) (8298) (151136187)
Decrease in the current
year
Disposal and scrap - 60708691 - - 60708691
31 December 2018 (137793202) (833579211) (1656135) (4003914) (977032462)
Book balance
31 December 2018 11940542578 28623498949 154619029 427487726 41146148282
31 December 2017 11999181253 28403125258 156630511 437269294 40996206316
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
(i) As at 31 December 2018 no power generation equipment was pledged as collateral for long-term
borrowings. (31 December 2017: the carrying amount of RMB 757878678 and the cost of RMB
2562570238 pledged as collateral for long-term borrowings of RMB 85000000).
As at 31 December 2017 and 31 December 2018 no buildings were pledged as collateral for long-term
borrowings.(ii) In 2018 the Group’s depreciation amount charged for fixed assets was RMB 3368013739 (2017:
RMB 3499179128) among which RMB 3317059002 (2017: RMB 3446599794) RMB 45160260
(2017: RMB 46987909) RMB 168621 (2017: RMB 4185) and RMB 5625856 (2017: RMB
5587240) were charged to cost of sales general and administrative expenses selling and distribution
expenses and construction in progress respectively.(iii) The costs of fixed assets transferred from construction in progress amounted to RMB 3621286114
(2017: RMB 2407077383)(Note 4(12)(a)(i)).
(iv) Impairment of fixed assets
In 2018 movements of provision for impairment of fixed assets were as follows:
31 December
2017
Increase in the
current year
Decrease in the
current year
31 December
2018Guangdong Yuejia Electric Co. Ltd. (“Yuejia
Electric”) (Note 1) 480449596 - - 480449596
Xuwen Wind Power (Note 2) 126877473 - - 126877473
Zhanjiang Zhongyue Energy Co. Ltd.(“Zhongyue Energy”) (Note 3) 12662964 - - 12662964
Guangdong Red Bay Power Generation Co.Ltd. (“Red Bay Power”) (Note 3) 93825445 - (45227916) 48597529
Guangdong Electric Power Development Co.Ltd. Shajiao A Power Plant (“Shajiao APower Plant”) (Note 3 4) 35959298 40395369 - 76354667
Zhanjiang Electric (Note 3) 29292346 1851125 (5242196) 25901275
Guangdong Yudean Jinghai Power Co. Ltd.(“Jinghai Power”) (Note 3) 23694296 - (10238579) 13455717
Guangdong Shaoguan Yuejiang Electric Power
Co. Ltd. (“Yuejiang Power”) (Note 3) 54091864 - - 54091864
Maoming Zhenneng Thermal Power Co. Ltd.(“Maoming Zhenneng”) (Note 3) 29751684 - - 29751684
Lincang Energy (Note 5) - 82261857 - 82261857
Huizhou Natural Gas (Note 6) - 23895462 - 23895462
Guangdong Province Wind Power Generation
Co. Ltd. (“Guangdong Wind Power”) - 2732374 - 2732374
886604966 151136187 (60708691) 977032462
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(iv) Impairment of fixed assets (Cont’d)
Note 1 Impairment of the asset groups related to generator units of Yuejia Electric
The four generator units of Yuejia Electric were shut down in August 2016. As at 31 December
2018 the disposal of such assets was not completed. As at 31 December 2017 and 31 December
2018 the balance of provision for impairment of the asset groups related to generator units of
Yuejia Electric was RMB 480449596.Note 2 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
138358965 with accumulated depreciation of RMB 11481492). As the units were completely
destroyed management recorded provision of RMB 126877473 for impairment of these units
against their full carrying amounts. As at 31 December 2018 the fixed assets were yet to be
disposed.Note 3 Impairment of ultra-low emissions energy-saving and catalyst of denitrification projects
According to Ultra-low Emissions and Energy-saving Transformation Work Program in Full
Operation (Huan Fa [2015] No. 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. For this purpose the Group made specific plans to propel the implementation
of ultra-low emissions and energy-saving program so that the reconstruction project of its
coal-fired units could be accomplished on schedule and run steadily. Based on the specific
circumstance of implementation of the Group’s coal-fired units on the program certain part of
equipment units are required to be dismantled or scrapped in advance. The Group recorded
corresponding provision for impairment according to the expected recoverable amounts of catalyst
of denitrification.
As at 31 December 2017 the balance of provision for impairment of ultra-low emissions
energy-saving and catalyst of denitrification projects was RMB 279277897. In 2018 the provision
for impairment of the fixed assets amounting to RMB 60708691 was reversed due to
dismantlement and disposal of related assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(iv) Impairment of fixed assets (Cont’d)
Note 4 Impairment of the asset groups related to generator units of Shajiao A Power Plant
Pursuant to the Circular on Shutdown of 1# Generator Unit of Shajiao A Power Plant and 2#
Generator Unit of Shajiao B Power Plant ([2018] No. 5354) and the Request on Retirement of
Shajiao Power Plant and Construction of Alternative Power Source ([2018] No. 361) issued by
Guangdong Development and Reform Commission 1# generator unit of Shajiao A Power Plant
was shut down in November 2018 2# and 3# generator units are expected to be shut down by the
end of 2019 and 4# and 5# generator units are expected to be shut down by the end of 2023. In
2018 the Group carried out tests for impairment of the asset groups related to generator units of
Shajiao A Power Plant and made a provision for impairment of power generation equipment of 1#
generator unit amounting to RMB 40395369.Note 5 Impairment of the asset groups related to generator units and goodwill of Lincang Energy
As the competition in Yunnan hydropower market is fierce Lincang Energy is suffering from
continuous operation loss. In 2018 the Group carried out tests for impairment of the asset groups
related to generator units of Lincang Energy and made a provision for impairment in which that of
fixed assets amounted to RMB 82261857 and that of intangible assets amounted to RMB
56502373 as the carrying amount of related asset groups was lower than the recoverable
amount.In addition 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 combination cost
over the fair value of the Group’s share of Lincang Energy’s identifiable assets and liabilities
amounted to RMB 25036894 and was recognised as goodwill related to Lincang Energy. In the
test of goodwill impairment in 2018 the Group compared the carrying amount of related asset
groups (including goodwill) of Lincang Energy with its recoverable amount and recorded a
provision of RMB 25036894 for impairment of the goodwill.The aforesaid recoverable amounts were determined based on the present value of the expected
future cash flows of related asset groups and the discount rate of 9.98% using the valuation model.Note 6 Pursuant to the Circular on Shutdown of Heating Boilers upon Operation of Huizhou LNG Project
Phase II issued by Huizhou municipal government and the Reply to the Environmental
Assessment on Cogeneration Expansion Project of Huizhou LNG Power Plant (Yue Huan Shen
[2012] No. 291) issued by the Department of Environmental Protection of Guangdong Province it
is required to shut down the dual-fuel heating boilers before the environmental acceptance check
of the project completion in prevention of pollution and ecological damages. As such heating
boilers were shut down in 2018 management recognised impairment of these assets amounting to
RMB 23895462.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(v) Fixed assets held under finance leases
Cost
Accumulated
depreciation Carrying amount
31 December 2018
Power generation equipment 2962401108 (1303446281) 1658954827
31 December 2017
Power generation equipment 3621850800 (1634876213) 1986974587
Details of the future lease payments of fixed assets held under finance leases are disclosed in Note
4(29).
(vi) Fixed assets with pending certificates of ownership:
Carrying amount
Reasons for not obtaining certificates
of title yet
Buildings 306915865 Awaiting government approval
As at 31 December 2018 after consulting the Group’s legal consultant management believed that
there were no substantial legal obstacles in obtaining the certificates and no material adverse
impact on normal operation of the Group would occur. In addition the certificates of title for some
buildings with the carrying amount of RMB 132436039 were obtained in February 2019.(b) Fixed assets pending for disposal
31 December 2018 31 December 2017
Scraped parts of power generation
equipment 11136365 14622066
Other equipment 310201 40167
11446566 14662233
(12) Construction in progress
31 December 2018 31 December 2017
Construction in progress (a) 7739308786 8467687340
Construction materials (b) 1445557 35869033
7740754343 8503556373
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress
31 December 2018 31 December 2017
Ending balance
Provision for
impairment Carrying amount Ending balance
Provision for
impairment loss Carrying amount
Bohe Coal integration project 5412887911 - 5412887911 5301125305 - 5301125305
Huizhou Natural Gas thermal and power
cogeneration expansion project 554922342 - 554922342 1368242612 - 1368242612
Qujie Wailuo offshore wind power project 543716851 - 543716851 - - -
Yangjiang Shapa offshore wind power
project 232363528 - 232363528 85471097 - 85471097
Huadu thermal and power cogeneration
project 89786127 - 89786127 45817111 - 45817111
Zhuhai Jinwan Electric offshore wind power
project 43915032 - 43915032 12873258 - 12873258
Lincang Dayakou Hydropower Station 37296440 - 37296440 29048654 - 29048654
Red Bay No.5&6 generator units 26446446 - 26446446 26446446 - 26446446
Xuwen Shiban Ling wind power project 3741000 - 3741000 224363966 - 224363966
Jinghai 1-4# generators ultra-low emission
reduction alteration project 2580251 - 2580251 41786331 - 41786331
Xuwen Qujie Ling wind power project - - - 312791806 - 312791806
Zhongyue 1 2 # generator units alteration
project - - - 317584933 - 317584933
Zhanjiang Electric 1-4# generators
ultra-low emission reduction alteration
project - - - 43214650 - 43214650
Humen Electric 2*1000MW project 137373040 (137373040) - 137373040 (137373040) -
Other technology improvement projects 437488696 - 437488696 356532229 (886463) 355645766
Other infrastructure construction projects 382886815 (28722653) 354164162 318181628 (14906223) 303275405
7905404479 (166095693) 7739308786 8620853066 (153165726) 8467687340
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(i) Movements of major construction in progress
Project name Budget
31 December
2017
Increase in the
current year
Transfer to fixed
assets (Note
4(11)(a)(iii)) Impairment
Other
decreases
31 December
2018
Proportion of
investment to
the budget
(%)
Project
progress
Capitalised
borrowing
costs
Including:
Capitalised
borrowing
costs for the
year
Capitalisation
rate Source of fund
Bohe Electric Power
Generation
integration project 9785950000 5301125305 335461627 (37912354) - (185786667) 5412887911 57.60% 49.85% 236839166 85116205 4.41%
Borrowings and
own funds
Huizhou Natural
Gas thermal and
power
cogeneration
expansion project 3326370000 1368242612 1190395261 (1897155707) - (106559824) 554922342 76.92% 98.00% 63550006 43253357 4.41%
Borrowings and
own funds
Qujie Wailuo
offshore wind
power project 7339450000 - 543716851 - - - 543716851 7.41% 7.41% 2602656 2602656 4.41%
Borrowings and
own funds
Yangjiang Shapa
offshore wind
power project 5999710000 85471097 146892431 - - - 232363528 3.87% 3.87% - - - Own funds
Huadu thermal and
power
cogeneration
project 3593160000 45817111 43969016 - - - 89786127 2.50% 2.50% - - - Own funds
Zhuhai Jinwan
Electric offshore
wind power project 5659710000 12873258 31041774 - - - 43915032 0.78% 0.09% - - - Own funds
Lincang Dayakou
Hydropower
Station 1209578400 29048654 8247786 - - - 37456841 93.56% 93.56% 142886856 - -
Borrowings and
own funds
Red Bay No.5&6
generator units 7714370000 26446446 - - - - 26446446 0.34% 0.50% - - - Own funds
Xuwen Shiban Ling
wind power project 460639300 224363966 77767617 (268901222) - (29489361) 3741000 70.86% 70.86% 12624058 4481254 4.41%
Borrowings and
own funds
Jinghai 1-4#
generators
ultra-low emission
reduction alteration
project 558000000 41786331 125063851 (162243285) - (2026646) 2580251 80.43% 99.00% - - - Own funds
Sub-total 7135174780 2502556214 (2366212568) - (217302674) 6947655928 458502742 135453472
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(i) Movements of major construction in progress (Cont'd)
Project name Budget
31 December
2017
Increase in the
current year
Transfer to fixed
assets (Note
4(11)(a)(iii)) Impairment
Other
decreases
31 December
2018
Proportion of
investment to
the budget
(%)
Project
progress
Capitalised
borrowing
costs
Including:
Capitalised
borrowing
costs for the
year
Capitalisation
rate Source of fund
Xuwen Qujie Ling
wind power
project
466450000 312791806 60046198 (347914084) - (24923920) - 84.82% 100.00% 15220407 3825137 4.41%
Borrowings and
own funds
Zhongyue 1 2 #
generator units
alteration project
531200000 317584933 113864919 (431449852) - - - 81.10% 100.00% 3824722 1524444 4.90%
Borrowings and
own funds
Zhanjiang Electric
1-4# generators
ultra-low emission
reduction alteration
project
259000000 43214650 58563947 (101778597) - - - 84.62% 100.00% - - - Own funds
Other infrastructure
construction
projects
Not
applicable 303275405 65576693 (871506) (13816430) - 354164162
Not
applicable
Not
applicable - - - Own funds
Other technology
improvement
projects
Not
applicable 355645766 456996183 (373059507) - (2093746) 437488696
Not
applicable
Not
applicable 532759 532759 -
Borrowings and
own funds
Sub-total 1332512560 755047940 (1255073546) (13816430) (27017666) 791652858 19577888 5882340
Total 8467687340 3257604154 (3621286114) (13816430) (350880164) 7739308786 478080630 141335812
Other decreases of construction in progress during the year mainly included revenue from trial operation transfer to other non-current assets (Note 4(12)(a)(iv))
intangible assets etc.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(ii) Provision for impairment of construction in progress
Item
31 December
2017
Increase in the
current year
Decrease in the
current year
31 December
2018 Reason for provision
Humen Electric 2*1000MW project (137373040) - - (137373040) Stoppage of construction
Shajiao A4# coal yard sea-fill yard capacity
increase project (5802000) - - (5802000)
Impairment of upfront expenses
for construction in progress
Impairment of upfront expenses for Guangdong
Wind Power project (5750094) (9272893) - (15022987)
Impairment of upfront expenses
for construction in progress
Impairment of upfront expenses for Lincang
Hydropower project (3354129) - - (3354129)
Impairment of upfront expenses
for construction in progress
Impairment of upfront expenses for Guangqian
Electric Project Phase II - (4543537) - (4543537)
Impairment of upfront expenses
for construction in progress
Zhanjiang Electric old office building renovation (886463) - 886463 -
Impairment of upfront expenses
for construction in progress
(153165726) (13816430) 886463 (166095693)
Note 1 Preparation work including preliminary feasibility studies design and three supplies and one levelling have proceeded for the project. However influenced
by national policies upon the industry the project has stagnated for years and signs of entire assets impairment have occurred. After impairment test
management has recorded provision for impairment of the project against its full carrying amount.(iii) As at 31 December 2018 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
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(iv) In 2018 Guangdong Yudean Bohe Coal Power Co. Ltd. (“Bohe Coal”) sold its construction in
progress of power plants to Guangdong Yudean Finance Leasing Co. Ltd. (“Yudean Leasing”) at
RMB 900000000 through finance leases arising from leaseback. The difference between the
selling price and the carrying amount amounting to RMB 185786667 was recognised in other
non-current assets as unrealised leaseback losses that would be amortised based on the
depreciation progress of the fixed assets subsequently transferred from other non-current assets.
As at 31 December 2018 the carrying amount of construction in progress arising from finance
leases was RMB 906981377 (31 December 2017: Nil).
In 2018 the Group acquired Wailuo offshore wind power project of Qujie Wind Power under finance
leases. As at 31 December 2018 the carrying amount of construction in progress arising from
finance leases was RMB 240830581 (31 December 2017: Nil).(b) Construction materials
31 December 2018 31 December 2017
Materials for specific use 1445557 1496854
Equipment for specific use - 34372179
1445557 35869033
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Intangible assets
Associated projects for
electricity transmission
and transformation and
microwave engineering Land use rights Sea use rights
Transportation
project Franchise right Software
Non-patent
technology and
others Total
Cost
31 December 2017 442517684 1812995669 129906544 22468672 13720736 109832029 950747 2532392081
Increase in the current year
Purchase - 298190440 - - - 5257056 6846357 310293853
Transfer from construction in
progress - - - - - 3362027 1644828 5006855
Disposal - - - - - (1650895) (6412512) (8063407)
31 December 2018 442517684 2111186109 129906544 22468672 13720736 116800217 3029420 2839629382
Accumulated amortisation
31 December 2017 (405126139) (295026101) (20484400) (21447068) (9910705) (79987831) (414369) (832396613)
Increase in the current year
Provision (4202171) (41033020) (2619492) - (282142) (6289316) (133815) (54559956)
Disposal - - - - - 1545309 84000 1629309
31 December 2018 (409328310) (336059121) (23103892) (21447068) (10192847) (84731838) (464184) (885327260)
Provision for impairment
31 December 2017 (33189374) - - (1021604) - - - (34210978)
Increase in the current year
Charge for the year - (56502373) - - - - - (56502373)
31 December 2018 (33189374) (56502373) - (1021604) - - - (90713351)
Book balance
31 December 2018 - 1718624615 106802652 - 3527889 32068379 2565236 1863588771
31 December 2017 4202171 1517969568 109422144 - 3810031 29844198 536378 1665784490
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Intangible assets (Cont’d)
(a) In 2018 the amortised amount of intangible assets was RMB 54559956 (2017: RMB
54513592).
(b) As at 31 December 2018 and 31 December 2017 provisions for impairment of the use rights of
associated projects for electricity transmission and transformation and microwave engineering and
transportation engineering of Yuejia Electric were made at amount of RMB 34210978 and the
provision for impairment of the land use rights of Lincang Energy amounted to RMB 56502373
(Note 5 under Note 4(11)(iv)).(c) As at 31 December 2018 the Group had obtained land use right certificates for all of its lands
except for lands with carrying amount of RMB 34063121 (31 December 2017: RMB 48304742)
that were under approval procedures for land use. 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.
(14) Goodwill
31 December
2017
Increase in the
current year
31 December
2018
Goodwill -
Guangdong Wind Power
(a) 2449886 - 2449886
Lincang Energy (Note 5
under Note 4(11)(iv))
25036894 - 25036894
27486780 - 27486780
Less: Provision for
impairment -
Lincang Energy (Note 5
under Note 4(11)(iv))
- (25036894) (25036894)
- (25036894) (25036894)
27486780 (25036894) 2449886
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Goodwill (Cont’d)
(a) In 2013 the Group acquired 55% shares in Guangdong Wind Power with a combination cost of
RMB 5994670. The excess of the combination cost over the fair value of the Group’s share of
Guangdong Wind Power’s identifiable assets and liabilities amounted to RMB 2449886 and was
recognised as goodwill.
(15) Long-term prepaid expenses
31 December
2017
Increase in the
current year
Amortisation
charged in the
current year
31 December
2018
Long-term lease charges 19343793 - (2028165) 17315628
Improvements to fixed assets
held under operating leases 5689614 722804 (1638867) 4773551
Others 1973964 - (1973964) -
27007371 722804 (5640996) 22089179
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
31 December 2018 31 December 2017
Deductible temporary
differences and
deductible losses Deferred tax assets
Deductible temporary
differences and
deductible losses Deferred tax assets
Provision for asset
impairments 592790665 138530294 601414037 150345688
Deductible losses 1023611123 254800254 543075416 135768855
Intra-group transactions 184890744 46222686 202928868 50732217
Net income from test run
included in construction in
progress 169034589 39513222 117089330 26510083
Employee benefits payable 98124525 22227221 86241170 21560293
Depreciation of fixed assets 77115313 19278829 76893416 19223353
Capital government grants 78570400 19642600 56576917 14144229
Amortisation of land use
rights 3313344 828336 3170586 792647
2227450703 541043442 1687389740 419077365
Including:
Expected to be recovered
within one year (inclusive) 60853542 115367229
Expected to be recovered
after one year 480189900 303710136
541043442 419077365
(b) Deferred tax liabilities before offsetting
31 December 2018 31 December 2017
Taxable temporary
differences
Deferred tax
liabilities
Taxable temporary
differences
Deferred tax
liabilities
Changes in fair value of
available-for-sale financial
assets included in other
comprehensive income (704342515) (176085629) (153664369) (38416092)
Revaluation upon acquisition - - (91379088) (22844772)
Net expenses in test run
included in construction in
progress (52176856) (13044215) (37809283) (9452322)
Amortisation of land use
rights (16835020) (4208755) - -
(773354391) (193338599) (282852740) (70713186)
Including:
Expected to be recovered
within one year (inclusive) (1077794) (1492421)
Expected to be recovered
after one year (192260805) (69220765)
(193338599) (70713186)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Deferred tax assets and deferred tax liabilities (Cont’d)
(c) Deductible temporary differences and deductible losses that are not recognised as deferred tax
assets are analysed as follows:
31 December 2018 31 December 2017
Deductible temporary differences 1101102084 936551327
Deductible losses 1124573498 587890568
2225675582 1524441895
(d) Deductible losses that are not recognised as deferred tax assets will be expired in following years:
31 December 2018 31 December 2017
2018 - 2504832
2019 3341528 8513773
2020 172104 5008444
2021 141098222 148194058
2022 412387834 423669461
2023 567573810 -
1124573498 587890568
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 no related deferred tax asset was recognised.(e) The net balances of deferred tax assets and liabilities after offsetting are as follows:
31 December 2018 31 December 2017
Offsetting
amount
Balance after
offsetting
Offsetting
amount
Balance after
offsetting
Deferred tax assets (92611758) 448431684 (46524326) 372553039
Deferred tax liabilities 92611758 (100726841) 46524326 (24188860)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Other non-current assets
Item 31 December 2018 31 December 2017
VAT input to be offset 581667123 -
Prepayments for equipment 482385711 165761100
Prepayment for construction 462720385 350347973
Unrealised losses on sales and leaseback (a) 340505389 173916629
Prepayment for land use rights 3732680 3732680
Others 604970 889151
1871616258 694647533
(a) Unrealised losses on sales and leaseback are the difference between the selling price of the power
generation equipment and its carrying amount and its remaining balance after depreciation was
based on the depreciation progress of the leaseback power generation equipment. In 2018 the
unrealised losses on sales and leaseback which were amortised in depreciation expenses in cost of
sales from main operations amounted to RMB 19197908 (2017: RMB: 19787236).
(18) Provision for asset impairments
31 December
2017
Increase in the
current year
Transfer to
provision for
impairment of
long-term equity
investments
Transfer from
provision for
impairment of
available-for-sa
le financial
assets
Write-off in the
current year
31 December
2018
Provision for bad debts (6846527) (3061038) - - - (9907565)
Including: -
Provision for bad debts of
accounts receivable - (157709) - - - (157709)
Provision for bad debts of
other receivables (6846527) (2598328) - - - (9444855)
Provision for bad debts of
advances to suppliers - (305001) - - - (305001)
Provision for decline in the
value of inventories (17420859) (2136875) - - - (19557734)
Provision for impairment of
fixed assets (886604966) (151136187) - - 60708691 (977032462)
Provision for impairment of
construction in progress (153165726) (13816430) - - 886463 (166095693)
Provision for impairment of
available-for-sale
financial assets (25010686) - 25010686 - - -
Provision for impairment of
long-term equity
investments - - - (25010686) - (25010686)
Provision for impairment of
intangible assets (34210978) (56502373) - - - (90713351)
Provision for impairment of
goodwill - (25036894) - - - (25036894)
(1123259742) (251689797) 25010686 (25010686) 61595154 (1313354385)
(19) Short-term borrowings
31 December 2018 31 December 2017
Credit loan 7526000000 9270000000
(a) As at 31 December 2018 the annual interest rates of the short-term borrowings ranged from 3.92%
to 4.70% (31 December 2017: from 3.92% to 5.02%).
(b) As at 31 December 2018 the balance of short-term credit loans provided by related party Yudean
Finance amounted to RMB 5042000000 (31 December 2017: RMB 5637000000) (Note 8(6)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(20) Notes and accounts payables
31 December 2018 31 December 2017
Notes payable (a) 941161107 297611800
Accounts payable (b) 2196600415 2219027261
3137761522 2516639061
(a) Notes payable
31 December 2018 31 December 2017
Bank acceptance notes 555000000 297611800
Trade acceptance notes 386161107 -
941161107 297611800
The above notes payable are all due within one year.(i) The Group used acceptance notes to pay for coal or fuel procured from the Industry Fuel.
According to the three-party agreement signed among the Group Yudean Finance and Industry
Fuel discounting expenses will be borne by the Group when Industry Fuel discounts the notes
they receive. As at 31 December 2018 the balance of bank acceptance notes issued by the Group
and discounted by Industry Fuel with Yudean Finance amounted to RMB 386161107 (31
December 2017: Nil) with discount rate of 3.92%. The acceptance notes were due from three to
twelve months. The balance of notes issued and accepted by Yudean Finance amounted to RMB
267000000 (31 December 2017: RMB 230000000 in which RMB 67611800 had not been
claimed by Industry Fuel) with discount rate of 3.92% to 4.29% (31 December 2017: 2.70% to
4.17%). The acceptance notes were due from three to twelve months (31 December 2017: due
from three to twelve months)(Note 8(6)). In 2018 the discounting interest charged by Yudean
Finance and borne by the Group which was included in the discounting interest expenses in the
year amounted to RMB 13243370 (31 December 2017: RMB 13638031)(Note 8(5)(i)).(b) Accounts payable
31 December 2018 31 December 2017
Fuel payable 1671130460 1530075127
Materials and spare parts payable 473108337 483460431
Maintenance and administrative fees payable - 89461265
Others 52361618 116030438
2196600415 2219027261
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(20) Notes and accounts payables (Cont'd)
(b) Accounts payable (Cont'd)
As at 31 December 2018 accounts payable with ageing over one year amounted to RMB
175747169 (31 December 2017: RMB 136266488) mainly fuel and materials payable of RMB
133287041 (31 December 2017: RMB 89461265) and maintenance and administrative fees
payable of RMB 40840315 (31 December 2017: RMB 46805223).
(21) Advances from customers
31 December 2018 31 December 2017
Advances from disposal of materials 155328 -
Advances for grid payment - 1713424
Others 188566 224799
343894 1938223
As at 31 December 2018 there were no large advances from customers ageing over one year (31
December 2017: Nil).
(22) Employee benefits payable
31 December 2018 31 December 2017
Short-term employee benefits payable (a) 179432031 140101582
Defined contribution plans payable (b) 29372990 -
Termination benefits payable (c) 26936158 17637046
235741179 157738628
(a) Short-term employee benefits payable
31 December
2017
Increase in the
current year
Decrease in the
current year
31 December
2018
Wages and salaries bonus
allowances and subsidies 50978 1152154891 (1152205869) -
Staff welfare 1864884 116950231 (116955772) 1859343
Social security contributions 50409762 120559167 (85771497) 85197432
Including: Medical insurance 50409762 113521664 (78733994) 85197432
Work injury insurance - 2079863 (2079863) -
Maternity insurance - 4957640 (4957640) -
Housing funds - 136880139 (136880139) -
Labour union funds and employee
education funds 82841668 43614018 (39221908) 87233778
Other short-term employee benefits 4934290 78861263 (78654075) 5141478
140101582 1649019709 (1609689260) 179432031
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(22) Employee benefits payable (Cont'd)
(b) Defined contribution plans payable
31 December
2017
Increase in the
current year
Decrease in the
current year
31 December
2018
Basic pensions - 153569624 (153569624) -
Unemployment insurance - 4734162 (4734162) -
Annuity - 83086609 (53713619) 29372990
- 241390395 (212017405) 29372990
(c) Termination benefits payable refer to early retirement benefits payable due by the Group within
one year (Note 4(31)).
(23) Taxes payable
31 December 2018 31 December 2017
Unpaid VAT 242647263 159547521
Enterprise income tax payable 115757551 59224530
Individual income tax payable 12437608 29612341
Water resource fee payable 6706870 945169
City maintenance and construction tax
payable 4418167 3500667
Educational surcharge payable 3469767 2895952
Pollution discharge fee payable and
environmental protection tax payable 3389557 2996840
Property tax payable 3347609 2877522
Land use tax payable 2122128 14990255
Others 2705186 694605
397001706 277285402
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(24) Other payables
31 December 2018 31 December 2017
Construction and equipment expenses payable 3622672965 3430308319
State Oceanic Administration penalty payable
(b) 183676050 172144350
Project warranty payable 118821787 156112962
Interest payable 59316077 98553104
Interest payable for long-term borrowings with
interest paid in instalment and principal
repaid on maturity 29830979 36701382
Interest payable for debentures 17070842 50486869
Interest payable for short-term borrowings 10103964 11010687
Other interest payable 2310292 354166
Payables to non-tradable owners of the
Company (c) 9703930 9703930
Payables for advances 1153204 12726072
Payables for purchase of unit capacity - 4000000
Others 157174482 133220968
4152518495 4016769705
(a) As at 31 December 2018 other payables of RMB 2002311622 (31 December 2017: RMB
1742036695) aged over one year mainly represented (i) construction and equipment expenses
payable and project warranty payable not being settled because the comprehensive acceptance and
settlement of relevant projects were yet to be completed or projects were still within their warranty
periods; and (ii) State Oceanic Administration penalty payable not being paid because judicial
proceedings related to the penalty had not been completed.(b) State Oceanic Administration penalty payable
(i) State Oceanic Administration penalty payable refers to the penalties amounting to RMB 172144350
and RMB 11531700 respectively imposed by the Administration of Ocean and Fisheries of
Guangdong Province and the Administration of Ocean and Fisheries of Huidong County with penalty
notice in 2016 and 2018 against Guangdong Huizhou Pinghai Power Plant (“Pinghai Power”) due to
its unapproved execution of engineering and bank revetment project from August 2007 to June 2016.The penalties had been recorded as non-operating expenses in 2016 and 2018 respectively. As at 31
December 2018 Pinghai Power had appealed for the aforesaid matter but the litigation outcome had
not been determined. Since the penalties remain unpaid they are presented in other payables.
According to the Agreement on Share Issuance and Asset Procurement entered into by GEGC and
the Company in 2012 GEGC makes commitments that if the target company’s activities before the
closing date cause itself potential significant litigation arbitration administrative punishment and/or
other events that go against relevant laws and regulations and fail to present in the target asset prices
as well as in the net asset value of the target company determined in the special audit on the closing
date any damage caused by such activities to the Company would be compensated by GEGC timely
and sufficiently in cash based on the equity of target company transferred to the Company in the
transaction within 30 days after GEGC legally determines the actual losses caused by such activities.
GEGC would make compensation to the Company based on the litigation result of the punishment in
2016 and the actual losses caused by such case. As the litigation result of the punishment remain
undetermined the Group could not determine the compensation obtained from GEGC thus the Group
did not recognise the receivables and income in 2018.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(24) Other payables (Cont’d)
(c) 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.
(25) Current portion of non-current liabilities
31 December 2018 31 December 2017
Long-term borrowings due within one year (a)
(Note 4(27)) 1745797372 1445497943
Debentures payable due within one year (b) (Note
4(28)) 698667556 1197935476
Long-term payables due within one year (c) (Note
4(29)) 334882726 369256941
2779347654 3012690360
(a) Long-term borrowings due within one year
Item 31 December 2018 31 December 2017
Pledged loan (i) 213259115 209579575
Guaranteed loan (ii) 55827500 58427500
Credit loan 1476710757 1177490868
1745797372 1445497943
(i) As at 31 December 2018 the charge right for electricity and accounts receivable were treated as
pledge for long-term pledged loan due within one year for the following subsidiaries:
31 December 2018 31 December 2017
Yuejiang Power 186859840 180897292
Zhanjiang Wind Power 18274167 17520000
Xuwen Wind Power 6527993 10062668
Leizhou Wind Power 1597115 1099615
213259115 209579575
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(25) Current portion of non-current liabilities (Cont’d)
(a) Long-term borrowings due within one year (Cont’d)
(ii) As at 31 December 2018 Zhanjiang Wind Power provided maximum amount guarantee for Xuwen
Wind Power’s long-term borrowings of RMB 11827500 (31 December 2017: RMB 10427500)
due within one year. The Company provided joint and several guarantee for Yuejiang Power’s
long-term borrowings of RMB 44000000 (31 December 2017: RMB 48000000) due within one
year.(iii) As at 31 December 2018 the annual interest rate of long-term borrowings due within one year
ranges from 1.29% to 4.90% (31 December 2017: from 1.29% to 4.90%). The borrowings will be
due within 12 months.(b) Details of debentures payable due within one year are disclosed in Note 4(28)
(c) Long-term payables due within one year
As at 31 December 2018 long-term payables due within one year were the net financing lease
payable of RMB 334882726 (namely the remaining net amount of the total amount of RMB
356362496 after deducting the unrecognised finance charge of RMB 21479770). As at 31
December 2017 long-term payables due within one year were the net financing lease payable of
RMB 369256941 (namely the remaining net amount of the total amount of RMB 403242457
after deducting the unrecognised finance charge of RMB 33985516).
As at 31 December 2018 details of long-term payables due within one year have been disclosed in
Note 4(29).
(26) Other current liabilities
31 December 2018 31 December 2017
Short-term debentures payable 1107904110 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(26) Other current liabilities (Cont’d)
Related information of short-term debentures payable is as follows:
Face value
Issuance
date
Maturity
period
Issuance
amount
31 December
2017
Issuance
during the year
Interest at
face value
Amortisation
of discounts
or premium
Repayments for
the year
31 December
2018
First batch of short-term financing
notes issued by Guangdong
Electric Power Development Co.
Ltd. 2018 500000000 06/06/2018
180
days 500000000 - 500000000 10479452 - (510479452) -
Second batch of short-term
financing notes issued by
Guangdong Electric Power
Development Co. Ltd. 2018 600000000 24/08/2018
180
days 600000000 - 600000000 7740000 - - 607740000
Third batch of short-term financing
notes issued by Guangdong
Electric Power Development Co.
Ltd. 2018 500000000 28/11/2018 28 days 500000000 - 500000000 978082 - (500978082) -
Fourth batch of short-term financing
notes issued by Guangdong
Electric Power Development Co.
Ltd. 2018 500000000 27/12/2018
152
days 500000000 - 500000000 164110 - - 500164110
2100000000 2100000000 - 2100000000 19361644 - (1011457534) 1107904110
In 2018 the interest rate of short-term financing notes issued by the Company was from 2.55% to 4.25% (2017: Nil).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Long-term borrowings
31 December 2018 31 December 2017
Pledged loan (a) 2765356586 2698978707
Loan secured by mortgages (b) - 85000000
Guaranteed loan (c) 1606112500 1665240000
Credit loan 16176620950 16462003105
20548090036 20911221812
Less: Long-term borrowings due within
one year (Note 4(25)(a)) (1745797372) (1445497943)
18802292664 19465723869
(a) As at 31 December 2018 the charge right for electricity and accounts receivable were treated as
pledge for long-term pledged loan for the following subsidiaries:
31 December 2018 31 December 2017
Yuejiang Power (i) 2151963439 2276504889
Leizhou Wind Power (ii) 236829612 188420594
Qujie Wind Power (iii) 162820000 -
Zhanjiang Wind Power (iv) 138945000 156465000
Xuwen Wind Power (v) 74798535 77588224
2765356586 2698978707
(i) As at 31 December 2018 the Company’s subsidiary Yuejiang Power borrowed RMB
2151963439 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 and the annual
interest rate is 4.53% (2017: ranges from 4.41% to 4.53%). The borrowings include long-term
borrowings due within one year amounting to RMB 186859840 (2017: RMB 2276504889
including long-term borrowings due within one year amounting to RMB 180897292).(ii) The Company’s subsidiary Leizhou Wind Power obtained loans from the Industrial and Commercial
Bank of China. According to the loan contract the category of the loan was changed from credit
loan to pledged loan after Leizhou Wind Power was put into operation in December 2017 and the
loan should be secured by Leizhou Wind Power’s right to charge electricity. As at 31 December
2018 the balance of pledged loan was RMB 236829612 with the maturity date of 29 April 2030
and the interest rate ranged from 4.41% to 4.90% including a long-term borrowings due within one
year amounting to RMB 1597115 (31 December 2017: RMB 188420594 including a long-term
borrowings due within one year amounting to RMB 1099615 with the interest rate ranged from
4.41% to 4.66%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Long-term borrowings (Cont’d)
(a) Pledged loan (Cont’d)
(iii) As at 31 December 2018 for the construction of Zhanjiang Wailuo offshore wind power project the
Company’s subsidiary Qujie Wind Power borrowed RMB 162820000 from bank consortium and
the Bank of China which was secured by Qujie Wind Power’s right to charge electricity. The
maturity date is 27 December 2036 and the annual interest rate is 4.80%.(iv) As at 31 December 2018 the Company’s subsidiary Zhanjiang Wind Power borrowed RMB
138945000 from the Industrial and Commercial Bank of China secured by Zhanjiang Wind
Power’s right to charge electricity. The maturity date is 7 May 2024 and the annual interest rate is
4.41% (2017: 4.66%). The borrowings include long-term borrowings due within one year amounting
to RMB 18274167 (2017: RMB 156465000 including long-term borrowings due within one year
amounting to RMB 17520000).(v) Based on the Loan Transfer Agreement of Yudean Yongshi Wind Power Project for Loan Protocol
under the Climate Change Framework of European Investment Banks between Zhanjiang Wind
Power and Department of Finance of Guangdong Province the Company’s subsidiary Zhanjiang
Wind Power acquired an USD loan transferred from the Loan Protocol under ‘Chinese Climate
Change Framework’ between China and European investment banks. The loan has been used on
Xuwen Yongshi Wind Power project and is secured by Xuwen Wind Power’s right for revenue of
electricity charge. As at 31 December 2018 the balance of the loan above was totalled at USD
10898493 (equivalent to RMB 74798535) (2017: USD 11874173 (equivalent to RMB
77588224)) among which balance of the long-term borrowings due within one year amounted to
USD 951159 (equivalent to RMB 6527993) (2017: USD 1540000 (equivalent to RMB
10062668)). The maturity date of the loan is 2 March 2029 with the annual interest rate from
0.92% % to 1.29% (2017: from 0.92% to 1.29%). Meanwhile the loans are guaranteed by the
Company.
(b) As at 31 December 2018 the loans secured by mortgages of RMB 85000000 of Shenzhen
Guangqian Electric Co. Ltd (“Guangqian Electric”) were totally repaid.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Long-term borrowings (Cont’d)
(c) As at 31 December 2018 the balance of the Company’s subsidiary Xuwen Wind Power’s long-term
borrowings from Yudean Finance was RMB 29800000 including long-term borrowings due within one
year of RMB 7400000 which was secured by the guarantee provided by Zhanjiang Wind Power
(2017: RMB 37200000 including long-term borrowings due within one year amounted to RMB
7400000). The annual interest rate of the loan is 4.66% (2017: 4.66%) and the maturity date is 21
August 2022.
As at 31 December 2018 the balance of the Company’s subsidiary Xuwen Wind Power’s long-term
borrowings from Yudean Finance was RMB 18300000 including long term borrowings due within one
year of RMB 1400000 which was secured by the guarantee provided by Zhanjiang Wind Power
(2017: RMB 19000000). The annual interest rate of the loan is 4.41% (2016: 4.66%) and the maturity
date is 28 November 2031.
As at 31 December 2018 the balance of the Company’s subsidiary Xuwen Wind Power’s long-term
borrowings from the Bank of Communications Co. Ltd. was RMB 14012500 including long-term
borrowings due within one year of RMB 3027500 which was secured by the guarantee provided by
Zhanjiang Wind Power (2017: RMB 17040000 including long-term borrowings due within one year
amounted to RMB 3027500). The annual interest rate of the loan is 4.90% (2017: 4.90%) and the
maturity date is 5 December 2022.
As at 31 December 2018 GEGC provided guarantee for the Company’s long-term borrowings of RMB
1500000000 (2017: RMB 1500000000) from Pacific Investment Management. The interest rate of
the loan is 5.00% (2017: 5.00%) and the maturity date is 13 August 2020.
As at 31 December 2018 the long-term borrowings of the Company’s subsidiary Yuejiang Power
amounting to RMB 44000000 were secured by the guarantee provided by the Company based on its
proportion of shareholding. The balance of the long-term borrowings due within one year included in
the loan was RMB 44000000 (31 December 2017: RMB 92000000 among which balance of
long-term borrowings due within one year was RMB 48000000). The interest rate of the borrowings is
4.90% (2017: 4.75%) and the maturity date is 2 July 2019.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) Debentures payable
31 December
2017
Issuance
during the
year
Interest at
face value
Amortisation of
discounts or
premium
Repayments for
the year
Reversal from
current portion of
non-current
liabilities
Transferred to
current portion of
non-current
liabilities
31 December
2018
16 Pinghai Bond 01 (a) 698168211 - - 499345 - - (698667556) -
12 Yudean Bond (b) - - - 2027433 (1159693500) 1197935476 - 40269409
First batch of middle-term notes
issued by Guangdong Electric
Power Development Co. Ltd.
2018 (c) - 797744000 - 313333 - - - 798057333
698168211 797744000 - 2840111 (1159693500) 1197935476 (698667556) 838326742
(a) As approved by CSRC Circular SFC License [2016] No. 1864 the Company’s subsidiary Pinghai Power issued 5-year book-entry corporate
debentures in real-name system with face value of RMB 700000000 (“16 Pinghai Bond 01”) to the public on 26 September 2016. The Company
altogether raised RMB 697375000 after deducting an issue expense of RMB 2625000. The loan is subject to an annual interest rate of 3.10%
counted from 26 September 2016 and should be payable annually on simple interest. According to the prospectus for 16 Pinghai Bond the
bondholder is entitled to sell its “16 Pinghai Bond 01” back to the Company in whole or in part based on the face value on the interest payment date
in the third interest-bearing year of the bond. Therefore the Company transferred the balance of debentures payable to the current portion of
non-current liabilities. As at 31 December 2018 debentures payable were measured at amortised cost using effective interest method with the
effective interest rate of 3.18%.(b) As approved by CSRC Circular SFC License [2012] No. 1421 the Company issued 7-year book-entry corporate debentures in real-name system
with face value of RMB 1200000000 (“12 Yudean Bond”) to the public on 18 March 2013. The Company altogether raised RMB 1193330000
after deducting an issue expense of RMB 6670000. The loan is subject to an annual interest rate of 4.95% counted from 18 March 2013 andshould be payable annually on simple interest. According to the prospectus for 12 Yudean Bond the bondholder is entitled to sell its “12 Yudean
Bond” back to the Company in whole or in part based on the face value on the interest payment date in the third interest-bearing year of the bond.
As at the fifth interest-bearing date the Company had repaid RMB 1159693500 and the rest would be repaid on the maturity date 17 March
2020. Therefore the Company transferred the balance of current portion of non-current liabilities back to the debentures payable. As at 31
December 2018 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 5.04%.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) Debentures payable (Cont’d)
(c) The Company’s application for registration of middle-term notes has been accepted by the National
Association of Financial Market Institutional Investors at its 28th meeting in 2018. The registered
amount of RMB 5000000000 would be valid for 2 years starting from 26 April 2018. On 27 August
2018 the Company issued 3-year middle-term notes with face value of RMB 800000000 in the
interbank market. The Company altogether raised RMB 797744000 after deducting an issue
expenses of RMB 2256000 which should be paid in three years. As at 31 December 2018 the issue
expenses of RMB 752000 had been paid. The loan is subject to an annual interest rate of 4.19%
counted from 27 August 2018 and should be payable annually on simple interest. As at 31 December
2018 debentures payable were measured at amortised cost using effective interest method with the
effective interest rate of 4.29%.
(29) Long-term payables
31 December 2018 31 December 2017
Long-term payables (a) 2221230656 1548259241
Payables for specific projects (b) 90282593 64605011
2311513249 1612864252
(a) Long-term payables
31 December 2018 31 December 2017
Finance lease payable (i) 2466113382 1827516182
Payables for share repurchase (ii) 90000000 90000000
Less: Long-term payables due within one
year (334882726) (369256941)
2221230656 1548259241
(i) The finance lease payable is mainly the balance of minimum lease payment less unrecognised finance
charge for power generation equipment by subsidiaries - Jinghai Power Yuejiang Power and
Zhongyue Energy Bohe Coal and Qujie Wind Power. The Company provided guarantee for Yuejiang
Power’s finance lease up to 65% of total amount of the finance lease and signed a counter guarantee
contract with Yuejiang Power.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(29) Long-term payables (Cont’d)
(a) Long-term payables (Cont’d)
(i) Finance lease payable (Cont’d)
The Group’s minimum finance lease payments are as follows:
Minimum finance lease payments 31 December 2018 31 December 2017
Within 1 year (inclusive) 356362496 403242457
Over 1 year but within 2 years (inclusive) 334799400 373429119
Over 2 years but within 3 years (inclusive) 192216671 353810789
Over 3 years 1613987015 761447305
Sub-total 2497365582 1891929670
Less: Unrecognised finance charge (31252200) (64413488)
2466113382 1827516182
The above finance lease payable due within one year less unrecognised finance charge is listed in
Note 4(25).(ii) In 2016 Guangdong Yuecai Investment Management Co. Ltd (“Yuecai Investment”) injected
capital of RMB 10000000 to the Company’s subsidiary Leizhou Wind Power and capital of RMB
50000000 to the Company’s subsidiary Dianbai Wind Power and obtained 30% equity of the
Company’s subsidiary Xuwen Wind Power with a consideration of RMB 30000000. According to
the agreement the Group shall repurchase the shares held by Yuecai Investment after the
five-year equity participation and the price of repurchase shall equals to Yuecai Investment’s
actual amount of contribution of RMB 90000000. The Group should pay equity premium to Yuecai
Investment at fixed proportion annually.(b) Payables for specific projects
Item
Opening
balance
Increase in the
current year
Decrease in the
current year
Ending
balance
Supporting funds for expansion
(i) 24960000 - - 24960000
Special fund for supply of
water power and heat and
property management (ii) 39645011 35376867 (9699285) 65322593
64605011 35376867 (9699285) 90282593
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(29) Long-term payables (Cont’d)
(b) Payables for specific projects (Cont’d)
(i) The payables for specific projects represent the fund granted for benefits improvement and
capacity expansion by governments at provincial and central level. According to the document
issued by Yunnan Water Conservancy & Hypower Investment Co. Ltd. (Yun Shui Tou Fa [2015]
No. 16) such payables for specific project were subject to an interest rate of 4% from 1 January
2015. The corresponding interest was recorded in the financial expenses by the Company.
(ii) Such payables for specific projects represent the fund for supply of water electricity and heat and
property management granted by the Department of Finance of Guangdong Province and GEGC
and received from Shaoguan Electric Power Plant based on agreement including RMB
32205311 from the Department of Finance of Guangdong Province and Yudean RMB
38647834 from GEGC and payables of RMB 4168733 from Shaoguan Electric Power Plant. The
special fund used in the current year amounted to RMB 9699285. According to the document
issued by Department of Finance of Guangdong Province (Yue Cai Gong [2017] No. 22) the
special fund is used for the renovation and reconstruction of the supply of water electricity and
heat and property management in employees’ family area charged by provincial enterprises.
(30) Deferred income
31 December
2017
Increase in the
current year
Decrease in the
current year
31 December
2018 Source
Government
grants (a) 142520263 16712775 (26189392) 133043646
Grants
provided by
government
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Deferred income (Cont’d)
(a) Government grants
Decrease in the current year
Government grants Note
31 December
2017
Increase in the
current year
Recorded in
other income
Other
movements
31 December
2018
Asset related/
income related
Shajiao A Zhenkou pump house (i) 28560022 - (753231) - 27806791 Asset related
Energy saving funds (ii) 20863104 - (4112576) - 16750528 Asset related
Tax refund for PRC-made equipment (iii) 17221559 - (2296209) - 14925350 Asset related
Comprehensive technology upgrading for the energy
saving of 1&2# generator units turbine (iv) 10000000 - (769231) - 9230769 Asset related
Incentives for energy efficiency of power plant by
Dongguan (v) 8781631 - (543194) - 8238437 Asset related
Development and competitiveness funds from SASAC (vi) 8666666 - (666666) - 8000000 Asset related
Second incentives for comprehensive and typical
demonstration projects under financial policies of
energy saving 8100000 - (450000) - 7650000 Asset related
Post rewarding subsidies for ultra-low emissions of
1&2# generators - 7440000 (527660) - 6912340 Asset related
Post rewarding subsidies for ultra-low emissions of
designated account of special fund in Maonan
District of Maoming in 2018 - 4405000 (338846) - 4066154 Asset related
Energy saving funds used as policy liquidation
subsidies in previous years 4165231 - (4165231) - - Asset related
Expansion on flow reconstruction project 3887055 - (262007) - 3625048 Asset related
Shajiao A - 2016 central finance energy saving fund 3783124 - (255001) - 3528123 Asset related
Incentive funds for construction of large industrial
enterprise R&D institutions in Shanwei - 3000000 - - 3000000 Asset related
Dianbai Reshui wind power plant project 3000000 - - - 3000000 Asset related
Refurbishment on air preheater 3093442 - (205791) - 2887651 Asset related
Sub-total 120121834 14845000 (15345643) - 119621191
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Deferred income (Cont’d)
(a) Government grants (Cont'd)
Decrease in the current year
Government grants Note
31 December
2017
Increase in the
current year Other income
Other
movements
31 December
2018
Asset related/
income related
Special prize funds of recycle economy and energy saving by
Shenzhen 2707321 - (246666) - 2460655 Asset related
Denitration project 2585029 - (308135) - 2276894 Asset related
Specific funds for denitrification and energy saving reconstruction
of 300MW generator units at Yuejiang Power Plant 5330700 - - (4110686) 1220014 Asset related
Water-freshing project 1076924 - (153846) - 923078 Asset related
Circulating water pump special fund for technological renovation 1000000 - (76923) - 923077 Asset related
1&2# Air preheater energy saving project 1000000 - (76923) - 923077 Asset related
2X600MW generator unit ultra-low emission transformation -
technical transformation for main auxiliary equipment of turbine
cold end system and boiler - 1000000 (76923) - 923077 Asset related
Rewarding subsidies for science and technology in 2018 - 732500 - - 732500 Asset related
2018 provincial special fund for boosting economic development
as transferred by the Department of Finance of Zhanjiang
Chikan Office - upgrading and transformation of low-voltage
generators with high energy consumption - 135275 (22546) - 112729 Asset related
Desulfurization project Shajiao A 5# generator unit 3076924 - (3076924) - - Asset related
Special funds for differential electricity price 1026886 - (1026886) - - Asset related
Special prize funds of recycle economy and energy saving by
Shaoguan 923896 - (923896) - - Asset related
Government subsidies from the financial treasury payment centre
of Qujiang District Shaoguan 3568379 - (641025) - 2927354 Asset related
Social security treatment clearing account relating to firm’s stable
position subsidy 102370 - (102370) - - Income related
Sub-total 22398429 1867775 (6733063) (4110686) 13422455
Total 142520263 16712775 (22078706) (4110686) 133043646
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Deferred income (Cont’d)
(a) Government grants (Cont'd)
(i) In 2015 as required by the local government the pump house of Shajiao A located in Changdi
Road Dianchang town was required to remove relocate and reconstruct with provisional
estimation of compensation amounting to RMB 30411446. The compensation shall be disclosed
under payables for specific projects on receipt of the amount transferred into deferred income
when expenditures for removal and reconstruction incur and amortised over the useful life upon
completion of relevant construction.(ii) This represents the energy-saving funds received by Yuejiang Power for reform of energy saving
and emission reduction technology in 2015 and assistance fund received in 2016 for
representative demonstration project under the energy saving and emission reduction policy. It is
amortised over the estimated useful lives of 13 years from the completion date of the project.(iii) This represents the value-added tax refunded for purchase of PRC-produced equipment received
by Shibeishan Wind Power. It is amortised on a straight-line basis over the estimated use period of
13 years.
(iv) This presents the government grants (first batch) received by Zhongyue Energy in Zhanjiang in
2017 from the investment plan under the central budget (2017) in priority projects of resource
conservation and recycling. The subsidy is used for the comprehensive energy saving technology
upgrading project of the turbines of Zhongyue Energy’s 1&2 # generator units. As at 31 December
2018 the technology upgrading project for such generator units was accomplished. Such subsidy
income is amortised on a straight-line basis over the estimated useful lives of 13 years from the
completion date of the project.(v) This represents the No.1918 No.1692 and No.1794 incentives of energy efficiency of power plant
of Dongguan received by Shajiao A in 2014 2015 and 2016 respectively. It is amortised on a
straight-line basis over the remaining estimated useful lives of relevant assets
(vi) This represents the reform and development fund received by Zhanjiang Wind Power in 2011 in
relation to Yongshi Wind Power Project. The Group amortises the fund during the income period of
the project on a straight-line basis.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(31) Long-term employee benefits payable
31 December 2018 31 December 2017
Termination benefits (a) 114331088 75609880
Other long-term employee benefits payable
(b) 46943615 39097210
Less: Payable within one year (38361315) (23084183)
122913388 91622907
The early retirement benefits payable within one year are included in the employee benefits payable
(Note 4(22)).Some employees of the Group have taken early retirement. As at the balance sheet date the main
actuarial assumptions used in estimating the obligation arising from the early retirement benefits
are as follows:
31 December 2018 31 December 2017
Discount rates 4.27% 4.22%
Early retirement benefits recognised in profit or loss for the current period:
2018 2017
General and administrative expenses 36539748 (46790029)
Financial expenses - 118849
(a) According to the Group’s regulations for early retirement of employees the employees can apply
for early retirement before statutory retirement age. Employees can obtain salary on a monthly
basis by a certain ratio of the original salary until they reach the statutory retirement age.Management expects the termination benefits to be paid in the future are determined by the
present value of cash flow when accrued the above termination benefits. As at 31 December 2018
the Group calculated the expected expense for each employee eligible for early retirement in each
year before the statutory retirement age in accordance with the related regulations for early
retirement and estimated the present value of future termination benefits by treasury bond interest
rate of 4.27% (2017: 4.22%) of the same period. As at 31 December 2018 the Group accrued a
termination benefits of RMB 114331088 (31 December 2017: RMB 75609880) and recognised it
in long-term employee benefits payable. The actual termination benefits due within one year
totalled at RMB 26936158 (31 December 2017: RMB 17637046) are recognised in employee
benefits payable.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(31) Long-term employee benefits payable (Cont'd)
(b) According to relevant regulations on social medical insurance in places where the subsidiaries of
the Company and the Group locate if individual employees participating basic medical insurance
for urban residents are under their statutory ages of retirement but their estimated contribution
years fail to meet the local standards the Group needs to make continuous contribution for the
employees till the standards are met even after their retirement. The expected present values of
cash flows that shall be paid for medical insurance after the retirement of employees till prescribed
terms are recognised as long-term employee benefits payable and recorded in profit or loss for the
period or cost of relevant assets. As at 31 December 2018 the balance of the Group’s other
long-term employee benefits payable was mainly the additional payment of medical insurance
made for retired employees. The Group calculated the expected expenses for each year from the
end of current year to regulated contribution years based on certain proportion of the retired
employee’s salary of the year and estimated the present value of cash expenses made by retired
employees for medical insurance in the future with a treasury bond interest rate of 4.27% (2017:
4.22%) as discount rate. As at 31 December 2018 the Group accrued other long-term employee
benefits payable of RMB 46943615 (31 December 2017: RMB 39097210) with actual payment
of other long-term employee benefits payable due within one year of RMB 11425157 (31
December 2017: RMB 5447137) recognised in employee benefits payable.
(32) Other non-current liabilities
31 December 2018 31 December 2017
Capital injection 166405569 16405569
In 2017 the Group’s subsidiary Yuejiang Power received a capital injection of RMB 16405569
from minority shareholders. As at 31 December 2018 such capital injection was recorded in other
non-current liabilities as the registration for changes of business license had not been completed.
In 2018 the Group’s subsidiaries Yudean Yangjiang Offshore Wind Power Co. Ltd. (“YangjiangWind Power”) and Qujie Wind Power respectively received capital injection of RMB 100000000
and RMB 50000000 from GEGC. The capital will be used for Yangjiang Shapa offshore wind
power plant project and Qujie Wailuo offshore wind power plant project. As at 31 December 2018
such capital injection was recorded in other non-current liabilities as the registration for changes of
business license had not been completed.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(33) Share capital
31 December 2017 Movements for the current year 31 December 2018
Issuance of new
shares Bonus shares
Housing fund
transferred to shares Others Sub-total
Shares subject to trading restriction:
- Shares held by domestic state-owned
legal person 1893342621 - - - - - 1893342621
- Other domestic shares
Including: Shares held by domestic
non-state-owned legal person 4620666 - - - - - 4620666
Shares held by domestic natural
person 3536 - - - 2123 2123 5659
Shares not subject to trading restriction
- RMB-dominated ordinary shares 2553909163 - - - (2123) (2123) 2553907040
- Domestically-listed foreign shares 798408000 - - - - - 798408000
5250283986 - - - - - 5250283986
31 December 2016
Movements for the current year 31 December 2017
Issuance of new
shares Bonus shares
Housing fund
transferred to shares Others Sub-total
Shares subject to trading restriction:
- Shares held by domestic state-owned
legal person 1893342621 - - - - - 1893342621
- Other domestic shares
Including: Shares held by domestic
non-state-owned legal person 4620666 - - - - - 4620666
Shares held by domestic natural
person 3536 - - - - - 3536
Shares not subject to trading restriction
- RMB-dominated ordinary shares 2553909163 - - - - - 2553909163
- Domestically-listed foreign shares 798408000 - - - - - 798408000
5250283986 - - - - - 5250283986
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Capital surplus
31 December
2017
Increase in
the current
year
Decrease in
the current
year
31 December
2018
Share capital premium (a) 4445477866 98596201 - 4544074067
Revaluation reserve 119593718 - - 119593718
Investment from GEGC 395000000 - - 395000000
Share of interest in the
investee based on
shareholding 20785182 - - 20785182
Transfer of capital surplus
recognised under the
previous accounting system 20474592 - - 20474592
Others 2919327 - - 2919327
5004250685 98596201 - 5102846886
31 December
2016
Increase in
the current
year
Decrease in
the current
year
31 December
2017
Share capital premium 4445477866 - - 4445477866
Revaluation reserve 119593718 - - 119593718
Investment from GEGC 395000000 - - 395000000
Share of interest in the
investee based on
shareholding 20785182 - - 20785182
Transfer of capital surplus
recognised under the
previous accounting system 20474592 - - 20474592
Others 1676120 1243207 - 2919327
5003007478 1243207 - 5004250685
(a) In November 2018 GEGC purchased 33% equity of the Company’s wholly-owned subsidiary Bohe
Coal with cash consideration of RMB 1100106963. The Company did not loss the control over
Bohe Coal and the difference between the portion of received consideration attributable to the
Company and the subsidiary’s shares of net assets calculated based on proportion of equity
disposed amounted to RMB 76087677 was recorded in capital surplus.In November 2018 the Company’s non-wholly-owned subsidiary Maoming Zhenneng acquired all
the equity of Maoming Thermal Power Plant Co. Ltd. (“Maoming Thermal”) a wholly-ownedsubsidiary of GEGC at RMB 429014036 from GEGC with a consideration of 30.12% equity (“the
Equity Transaction of Maoming Zhenneng”). Since Maoming Thermal did not have any operation
at the combination date the equity transaction did not form a business combination involving
enterprises under common control. After the equity transaction the Company did not loss the
control over Bohe Coal and the difference between the portion of received consideration
attributable to the company and the subsidiary’s shares of net assets calculated based on
proportion of equity disposed amounted to RMB 22495935 was recorded in capital surplus.In November 2018 Guangdong Wind Power purchased 13.33% equity of Huilai Wind Power with
cash consideration of RMB 16000000. The difference between the paid consideration and the
subsidiary’s shares of net assets calculated based on proportion of equity acquired amounted to
RMB 12589 was recorded in capital surplus. Meanwhile the minority interests were reduced by
RMB 12589.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Other comprehensive income
Other comprehensive income in the balance sheet Other comprehensive income in income statement for the year ended 31 December 2018
31 December
2017
Attributable to
the parent
company after
tax
31 December
2018
Accruals
before income
tax in the
current year
Less: Amounts
previously recognised
in other
comprehensive
income transferred
out in the current year
Less: Income
tax expenses
Attributable to
the parent
company after
tax
Attributable to
minority
shareholders
after tax
Other comprehensive income that will be
subsequently reclassified to profit or loss
Other comprehensive income that cannot be
transferred to profit or loss under equity
method 21753244 - 21753244 - - - - -
Gains or losses arising from changes in fair
value of available-for-sale financial assets 115248279 413008610 528256889 550678146 - (137669536) 413008610 -
137001523 413008610 550010133 550678146 - (137669536) 413008610 -
Other comprehensive income in the balance sheet Other comprehensive income in income statement for the year ended 31 December 2017
31 December
2016
Attributable to
the parent
company after
tax
31 December
2017
Accruals
before income
tax in the
current year
Less: Amounts
previously recognised
in other comprehensive
income transfer out in
the current year
Less:
Income tax
expenses
Attributable to
the parent
company after
tax
Attributable to
minority
shareholders
after tax
Other comprehensive income that will be
subsequently reclassified to profit or loss
Other comprehensive income that can be
transferred to profit or loss under equity
method 21753244 - 21753244 - - - - -
Gains or losses arising from changes in fair
value of available-for-sale financial assets 123305771 (8057492) 115248279 (10743323) - 2685831 (8057492) -
145059015 (8057492) 137001523 (10743323) - 2685831 (8057492) -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(36) Surplus reserve
31 December
2017
Increase in the
current year
Decrease in the
current year
31 December
2018
Statutory surplus
reserve 2641707753 69654691 - 2711362444
Discretionary surplus
reserve 4948655971 174136728 - 5122792699
7590363724 243791419 - 7834155143
31 December
2016
Increase in the
current year
Decrease in the
current year
31 December
2017
Statutory surplus
reserve 2428747208 212960545 - 2641707753
Discretionary surplus
reserve 4416254610 532401361 - 4948655971
6845001818 745361906 - 7590363724
In accordance with the Company Law and the Company’s Articles of Association the Company
should appropriate 10% of net profit for the year to the statutory surplus reserve and the Company
can cease appropriation when the statutory surplus reserve accumulated to more than 50% of the
registered capital. The Company appropriates for the discretionary surplus reserve after the
shareholders’ meeting approves the proposal from the Board of Directors. The surplus reserve can
be used to make up for the loss or increase the share capital after approval from the appropriate
authorities.
According to the resolution at the shareholders’ meeting dated 12 June 2018 the Company
appropriated 10% of net profit for 2017 amounting to RMB 69654691 (2017: 10% of net profit for
2016 amounting to RMB 212960545) to the statutory surplus reserves. Meanwhile the Company
appropriated 25% of net profit for 2017 amounting to RMB 174136728 (2017: 25% of net profit for
2016 amounting to RMB 532401361) to discretionary surplus reserves.
(37) Undistributed profits
2018 2017
Undistributed profits at the beginning of the
year 5713290735 6135494928
Add: Net profit attributable to equity owners
of the company 474461997 743180431
Less: Appropriation to statutory surplus
reserve (Note 4(36)) (69654691) (212960545)
Appropriation to discretionary surplus
reserve (Note 4(36)) (174136728) (532401361)
Dividends payable on ordinary shares
(a) (420022719) (420022718)
Others (b) (33932454) -
Undistributed profit at the end of the year 5490006140 5713290735
(a) In accordance with the resolution at the shareholders’ meeting dated 12 June 2018 the Company
proposed a cash dividend to the shareholders at RMB 0.8 per 10 shares amounting to RMB
420022719 calculated by 5250283986 issued shares.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(37) Undistributed profits (Cont’d)
(b) In 2018 the assets transferred by the Group without compensation to the entities such as GEHC’s
subsidiaries and the Highway Management Station of Red Bay Economic Development Zone for
the assets related to supply of water power and heat and property management and the
segregation and handover of municipal functions of SOEs totalled RMB 49878539 of which the
amount borne by the parent company was RMB 33932454.(c) Undistributed profit at the end of the year
The surplus reserves attributable to the parent company appropriated by subsidiaries this year
were RMB 104824162 (2017: RMB 102706924).
As at 31 December 2018 the undistributed profits attributable to the parent company included an
appropriation of RMB 2318515265 (31 December 2017: RMB 2223884635) to surplus reserves
made by the Company’s subsidiaries.
(38) Revenue and cost of sales
2018 2017
Revenues from main operations 27125955662 26393153579
Revenue from other operations 282558516 250638478
27408514178 26643792057
2018 2017
Cost of sales from main operations 24236414355 23277935709
Cost of sales from other operations 10302225 14352960
24246716580 23292288669
(a) Revenue and cost of sale from main operations
2018 2017
Revenues from
main operations
Cost of sales
from main
operations
Revenues from
main operations
Cost of sales
from main
operations
Revenue from sales of
electricity 26949774763 24099233129 26250079293 23156713366
Revenue from steam 126032622 87916412 93907579 77158338
Rendering of services 50148277 49264814 49166707 44064005
27125955662 24236414355 26393153579 23277935709
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(38) Revenue and cost of sales (Cont’d)
(b) Revenue and cost of sales from other operations
2018 2017
Revenue from
other operations
Cost of sales
from other
operations
Revenue from
other operations
Cost of sales
from other
operations
Revenue from
integrated utilisation
of coal ash 240230510 1539166 203698123 8004336
Rental income 20343421 4088745 14691747 22008
Revenue from sales of
materials 1324637 1155075 3228908 358995
Others 20659948 3519239 29019700 5967621
282558516 10302225 250638478 14352960
Information for revenue cost of sales and profit from main operating activities are included in
segment reporting.
(39) Taxes and surcharges
2018 2017 Tax base
Real estate tax 69351272 69109064 Note 3
City maintenance and construction
tax 62122786 73168035 Note 3
Educational surcharge 50942570 58982876 Note 3
Land use tax 22277871 24793681
Stamp tax 17440628 17479308
Environmental protection tax 15576704 -
Vehicle and vessel use tax 258095 336680
Business tax - 2800
237969926 243872444
(40) Selling and distribution expenses
2018 2017
Labour cost 15734977 3750534
Labour insurance 3419927 647591
Entertainment expenses 2450910 1325568
Depreciation expenses (Note 4(11)) 168621 4185
Others 3609426 2496118
25383861 8223996
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(41) General and administrative expenses
2018 2017
Labour cost 279543009 238192466
Labour insurance 88735929 47896800
Amortisation of intangible assets 53189360 53133360
Fire safety expenses 47034725 40578207
Depreciation expenses (Note 4(10) (11)) 45795858 47623507
Property management expenses 26313608 26750517
Office expenses 20613680 21491527
Agency fee 18257095 22951448
Rental expenses 10992313 12304808
Maintenance cost 9894228 8483661
Afforestation fee 9215763 11909733
Traffic expenses 8799661 8992751
Travelling expenses 6415526 6817094
Labour costs 5769769 4284878
Entertainment expenses 3810169 4505193
Insurance expenses 3465634 2874227
Expenses on board meetings 719286 640032
Sewage charges 687529 21401263
Embankment protection fee - 578439
Others 49096796 56607341
688349938 638017252
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(42) Financial expenses
2018 2017
Interest of debentures 67280891 93130000
Interest expenses 1366253508 1267471049
Less: Amounts capitalised on qualifying
assets (141335812) (115040638)
Sub-total of interest expenses 1292198587 1245560411
Amortisation of unrecognised finance charge 91431485 83103789
Interest expenses of discounted notes 18306904 14534341
Amortisation of long-term debentures (Note
4(28)) 2840111 1746068
Less: Interest income (63471806) (65153386)
Exchange losses/(gains) - net 4859137 (4702846)
Bank charges and others 4320833 4167164
1350485251 1279255541
(43) Asset impairment losses
2018 2017
Impairment losses of fixed assets 151136187 29483080
Impairment losses of intangible assets 56502373 -
Impairment losses of goodwill 25036894 -
Impairment losses of construction in
progress 13816430 90837779
Bad debts losses 3061038 422829
Losses on decline in the value of inventories 2136875 -
Impairment losses on financial assets
available-for sale - 25010686
251689797 145754374
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(44) Other income
2018 2017
Asset related/
income related
Nansha annual headquarters
enterprise award 2017 10774300 - Income related
Revenue from timely levy and
refund of VAT 9219882 9873727 Income related
Energy saving funds used as
policy liquidation subsidies in
previous years 4165231 - Asset related
Energy saving funds 4112576 2873723 Asset related
Prize for entrance of high and
new technological enterprise
cultivation library granted by
the Department of Finance of
Zhanjiang Chikan Office 3537993 - Income related
Desulfurization project Shajiao A
5# generator unit 3076924 3076923 Asset related
Financial subsidy fund by
Zhanjiang Government 3050000 - Income related
Tax refund for PRC-made
equipment 2296209 2296208 Asset related
Income from refund of
commissions for individual
income tax 1179059 - Income related
Special funds for differential
electricity price 1026886 - Asset related
Special fund of provincial
industrialisation and
informatisation development
(2017) for technological
upgrading of enterprises - 18595400 Income related
Subsidy from Bureau of Finance
of Huidong County for
atmospheric pollution control - 2000000 Income related
Others 10311787 12156841
Asset and
income related
52750847 50872822
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(45) Investment income
2018 2017
Gains from long-term equity investments
under equity method 488203462 436407642
Investment income from available-for-sale
financial assets 49140042 52319444
Others 359466 359463
537702970 489086549
The Group obtains returns from investment without any significant restrictions.
(46) Gains/(Losses) on disposals of assets
2018 2017
Amount recognised in
non-recurring profit or
loss in 2018
Gains/(Losses) on disposals of
fixed assets 1572097 (4720404) 1572097
(47) Non-operating income
2018 2017
Amount recognised in
non-recurring profit or
loss in 2018
Claims and compensation income
(a) 45458540 5223824 45458540
Gains on donations (b) 36986954 - 36986954
Gains on scraping of fixed assets 2245329 - 2245329
Payables unnecessary to be paid 583286 688329 583286
Government grants irrelevant to
ordinary activities - 345500 -
Others 4182128 3207321 4182128
89456237 9464974 89456237
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(47) Non-operating income (Cont’d)
(a) In 2018 the claims and compensation income mainly represent the claim compensation of RMB
45458540 received by the Company’s subsidiary Xuwen Wind Power from the insurance
company for the Rammasun typhoon incident at the Yongshi Wind Power Plant.(b) In 2018 the non-related electric power enterprises with diversified businesses voluntarily donated
assets to certain subsidiaries of the Group during their liquidation totalling RMB 36986954. The
donated assets mainly comprised buildings vehicles etc.
(48) Non-operating expenses
2018 2017
Amount recognised in
non-recurring profit or
loss in 2018
Losses on scrapping of
long-term assets 21457918 - 21457918
Penalties and overdue fines
(Note 4(24)(b)). 12679505 7130563 12679505
Donations 2935000 1140000 2935000
Others 2087107 1621811 2087107
39159530 9892374 39159530
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(49) Income tax expenses
2018 2017
Current income tax calculated based on tax law
and related regulations 476327171 495956673
Deferred income tax (141226938) (79467357)
335100233 416489316
The reconciliation from income tax calculated based on the applicable tax rates and total profit
presented in the consolidated income statement to the income tax expenses is listed below:
2018 2017
Total profit 1245197670 1554210475
Income tax calculated at applicable tax rates 311299418 388552619
Effect of preferential tax rates of subsidiaries (37729056) (22615361)
Income not subject to tax (134879733) (127632250)
Costs expenses and losses not deductible for tax
purposes 17227646 13494284
Deductible losses for which no deferred tax asset
was recognised in current period 141893452 107242635
Temporary differences for which no deferred tax
asset was recognised in current period 58065184 54279872
Utilisation of deductible temporary differences and
deductible losses for which no deferred tax asset
was recognised in previous periods (17039919) (5566961)
Effect of other deductible expenses (339410) (4301326)
Tax filing differences of income tax in prior years (3397349) 5963530
Repayment of income tax of tax inspection - 7072274
Income tax expenses 335100233 416489316
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(50) Earnings per share
(a) Basic earnings per share
Basic earnings per share is calculated by dividing consolidated net profit attributable to ordinary
shareholders of the parent company by the weighted average number of ordinary shares
outstanding
2018 2017
Consolidated net profit attributable to ordinary
shareholders of the parent company 474461997 743180431
Weighted average number of outstanding ordinary
shares of the Company 5250283986 5250283986
Basic earnings per share 0.09 0.14
Including:
- Basic earnings per share from continuing
operations 0.09 0.14
- Basic earnings per share from discontinued
operations - -
(b) Diluted earnings per share
Diluted earnings per share is calculated by dividing net profit attributable to ordinary shareholders
of the parent company adjusted based on the dilutive potential ordinary shares by the adjusted
weighted average number of ordinary shares outstanding. In 2018 there were no dilutive potential
ordinary shares (2017: Nil) and hence diluted earnings per share is equal to basic earnings per
share.
(51) Expenses by nature
Cost of sales taxes and surcharges selling and distribution expenses general and administrative
expenses research and development expenses financial expenses and asset impairment losses
in the income statement are classified below according to nature:
2018 2017
Consumed fuel and low value consumables etc. 18171718721 17222768104
Depreciation and amortisation expenses 3440501770 3574163096
Employee benefits 1779288108 1672491580
Financial expenses 1350485251 1279255541
Others 813013130 781355118
Repair charges 928420266 902064084
Impairment losses on non-current assets 246491884 145331545
Transaction expenses 52083007 12243073
Rental 18593216 17740135
Research and development expenses 5043776 16980873
26805639129 25624393149
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(52) Notes to the cash flow statement
(a) Cash received relating to other operating activities
2018 2017
Interest income 59564119 66910733
Government grants 38263746 59495276
Rental income 21564026 13425844
Others 18740883 4241150
138132774 149296827
(b) Cash paid relating to other operating activities
2018 2017
Insurance expenses 103099272 90337396
Sewage charges 63437485 64746917
Transaction expenses 55207987 12977656
Fire safety expenses 51242734 40578207
Traffic expenses 33298085 27060505
Property management expenses 31646545 26750517
Office expenses 26262942 25371981
Rental expenses 20638470 17740135
Utility fees 19584607 21248782
Agency fee 19352521 22951448
Union dues 17049514 17500027
Travelling expenses 11840286 11512096
Maintenance cost 10508923 8483661
Expenses for Party construction 6439857 -
Entertainment expenses 6261079 5830761
Research and development expenses 5043776 16980873
Deposit of performance guarantee 4000000 -
Others 98300386 76668679
583214469 486739641
(c) Cash received relating to other investing activities
2018 2017
Cash at bank and on hand acquired from
Maoming Zhenneng’s equity transaction
with Mao Thermal 161670884 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(52) Notes to the cash flow statement (Cont’d)
(d) Cash received relating to other financing activities
2018 2017
Income from odd lots - 42438
(e) Cash paid relating to other financing activities
2018 2017
Payment of capital withdrawal to minority
shareholders by Yuejia Electric 136080000 -
(53) Supplementary information to the cash flow statement
(a) Supplementary information to the cash flow statement
Reconciliation from net profit to cash flows from operating activities
2018 2017
Net profit 910097437 1137721159
Add: Provisions for asset impairment 251689797 145754374
Depreciation of fixed assets and
investment properties 3382287226 3499814726
Amortisation of intangible assets
long-term prepaid expenses and
deferred income 36135838 72988124
(Gains)/Losses on disposal of fixed
assets intangible assets and other
long-term assets (27805508) 4720404
Financial expenses 1409636224 1344945364
Investment income (537702970) (489086549)
Increase in deferred tax (141226938) (79467357)
Decrease/(Increase) in inventories 43680628 (14481532)
Increase in operating payables (360270970) (111321004)
Increase/(Decrease) in operating
payables 1064707342 (1835553206)
Others (31291750) -
Net cash flows from operating activities 5999936356 3676034503
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(53) Supplementary information to the cash flow statement (Cont’d)
(a) Supplementary information to the cash flow statement (Cont’d)
Significant operating investing and financing activities that do not involve cash receipts and
payments
2018 2017
Inventory procurement payment made by
acceptance notes 941161107 297611800
Long-term assets of finance lease through
leaseback 900000000 -
Non-moneytary asset acquired from
Maoming Zhenneng’s equity transaction
with Mao Thermal 267343152
Long-term assets held under finance leases 240830581 -
2349334840 297611800
Net increase/(decrease) in cash and cash equivalents
2018 2017
Cash at the end of the year 5570382892 4996580490
Less: Cash at the beginning of the year (4996580490) (5184873650)
Net increase/(decrease) in cash and cash
equivalents 573802402 (188293160)
(b) Cash and cash equivalents
31 December 2018 31 December 2017
Cash 5574382892 4996580490
Less: 4000000 -
Cash and cash equivalents at the end of the
year(i) 5570382892 4996580490
(i) Cash and cash equivalents at the end of the year
31 December 2018 31 December 2017
Cash on hand 31413 37745
Cash at bank that can be readily drawn on
demand 5570351479 4996542745
5570382892 4996580490
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(54) Monetary items denominated in foreign currency
31 December 2018
Balance in foreign
currencies Exchange rate Balance in RMB
Cash at bank and on hand -
USD 190 6.8632 1304
HKD 12883 0.8762 11288
12592
Long-term borrowings -
USD 9947334 6.8632 68270542
EUR 450756 7.8473 3537220
71807762
Current portion of non-current
liabilities -
USD 951159 6.8632 6527993
EUR 314641 7.8473 2469081
8997074
5 Changes in consolidation scope
Subsidiaries established during the year:
Subsidiaries
Major business
location
Place of
registration
Nature of
business
Registered
capital
Shareholding
(%)
Acquisition
method
Yudean Zhuhai Offshore
Wind Power Co. Ltd.(“Zhuhai Wind Power”)
Zhuhai
Guangdong
Province
Jinwan District
Zhuhai
Guangdong
Province
Electricity
generation 65000000 100.00% Investment
Yudean Zhencheng
Comprehensive Energy
Co. Ltd. (“Zhencheng
Comprehensive”)
Maoming
Guangdong
Province
Maonan
District
Maoming
Guangdong
Province
Electricity
generation 20000000 37.23% Investment
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities
(1) Interest in subsidiaries
(a) Composition of the Group
Subsidiaries Major business location Place of registration Nature of business Shareholding (%) Acquisition method
Direct Indirect
Maoming Zhenneng (i) Maoming Maoming Electricity generation 46.54% - Investment
Jinghai Power Jieyang Jieyang Electricity generation 65.00% - Investment
Zhanjiang Wind Power Zhanjiang Zhanjiang Electricity generation 70.00% - Investment
Guangdong Yudean Anxin Electric Inspection & Installation Co. Ltd.
(“Anxin Inspection”) Dongguan Dongguan Electricity generation 100.00% - Investment
Guangdong Yudean Humen Electric Co. Ltd. (“Humen Electric”) Dongguan Dongguan Electricity generation 60.00% - Investment
Bohe Coal Maoming Maoming Electricity generation 67.00% - Investment
Yuheng Electric Zhanjiang Zhanjiang Electricity generation - 76.00%
Business combinations involving enterprises
under common control
Xuwen Wind Power Zhanjiang Zhanjiang Electricity generation - 70.00% Investment
Guangdong Yudean Huadu Natural Gas Thermal Power Co. Ltd.(“Huadu Natural Gas”) Guangzhou Guangzhou Electricity generation 65.00% - Investment
Dabu Electric Meizhou Meizhou Electricity generation 100.00% - Investment
Leizhou Wind Power Leizhou Leizhou Electricity generation 80.00% 14.00% Investment
Dianbai Wind Power Maoming Maoming Electricity generation - 100.00% Investment
Zhanjiang Electric Zhanjiang Zhanjiang Electricity generation 76.00% -
Business combinations involving enterprises
under common control
Yuejia Electric Meizhou Meizhou Electricity generation 58.00% -
Business combinations involving enterprises
under common control
Yuejiang Power Shaoguan Shaoguan Electricity generation 90.00% -
Business combinations involving enterprises
under common control
Zhongyue Energy Zhanjiang Zhanjiang Electricity generation 90.00% -
Business combinations involving enterprises
under common control
Yudean Power Sales Co. Ltd. (“Power Sales”) Guangzhou Guangzhou Electricity generation 100.00% - Investment
Qujie Wind Power Zhanjiang Zhanjiang Electricity generation 100.00% - Investment
Yangjiang Wind Power Yangjiang Yangjiang Electricity generation - 100.00% Investment
Lincang Energy Lincang Yunnan Province Lincang Electricity generation 100.00%
Business combinations involving enterprises not
under common control
Guangqian Electric Shenzhen Shenzhen Electricity generation 100.00% -
Business combinations involving enterprises
under common control
Huizhou Natural Gas Huizhou Huizhou Electricity generation 67.00% -
Business combinations involving enterprises
under common control
Pinghai Power Huizhou Huizhou Electricity generation 45.00% -
Business combinations involving enterprises
under common control
Shibeishan Wind Power Jieyang Jieyang Electricity generation - 70.00%
Business combinations involving enterprises
under common control
Red Bay Power Shanwei Shanwei Electricity generation 65.00% -
Business combinations involving enterprises
under common control
Guangdong Wind Power Guangzhou Guangzhou Electricity generation 100.00% -
Business combinations involving enterprises not
under common control
Tongdao Yuexin Wind Power Co. Ltd. (“Tongdao Company”) Huaihua Hunan Province Huaihua Electricity generation 100.00% Investment
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(1) Interest in subsidiaries (Cont’d)
(a) Composition of the Group (Cont’d)
Subsidiaries
Major business
location Place of registration
Nature of
business Shareholding (%) Acquisition method
Direct Indirect
Guangdong Yudean Pingyuan Wind Power Co. Ltd.(“Pingyuan Wind Power”) Meizhou Meizhou
Electricity
generation - 100.00% Investment
Guangdong Yudean Heping Wind Power Co. Ltd.(“Heping Wind Power”) Heyuan Heyuan
Electricity
generation - 100.00% Investment
Huilai Wind Power Jieyang Jieyang
Electricity
generation - 83.33%
Business combinations
involving enterprises not
under common control
Guangdong Yuejiang Hongrui Power Technology
Development Co. Ltd. (“Hongrui Technology”) Shaoguan Shaoguan
Electricity
generation - 90.00% Investment
Guangdong Yudean Yongan Natural Gas Thermal Power
Co. Ltd. (“Yongan Natural gas”) Zhaoqing Zhaoqing
Electricity
generation 90.00% - InvestmentHunan Xupu Yuefeng New Energy Co. Ltd. (“XupuYuefeng”)
Huaihua Hunan
Province
Xupu County Huaihua
Hunan Province
Electricity
generation - 100.00% Investment
Guangxi Wuxuan Yuefeng New Energy Co.Ltd.(“Wuxuan Yuefeng”)
Guangxi Zhuang
Autonomous
Region
Wuxuan Guangxi
Zhuang Autonomous
Region
Electricity
generation - 100.00% Investment
Pingdian Comprehensive Huizhou Huizhou
Electricity
generation - 45.00% Investment
Zhuhai Wind Power Zhuhai Zhuhai
Electricity
generation - 100.00% Investment
Zhencheng Comprehensive Maoming Maoming
Electricity
generation - 37.23% Investment
(i) On 30 November 2018 Maoming Zhenneng merged Maoming Thermal wholly-owned by GEGC. After the merger GEGC held 30.12% equity of Maoming
Zhenneng. According to the agreement between the Company and GEGC the delegated shareholder and director from GEGC maintain consensus with
those of the Company while exercising the voting rights during the shareholders’ meeting and the Board of Directors’ meeting at Maoming Zhenneng.Therefore the Company owns control power over Maoming Zhenneng. In addition pursuant to the consent agreement entered into between the Company
and GEGC the Company holds 61.33% voting rights in Zhencheng Comprehensive a subsidiary whose 80% equity is directly held by Maoming Zhenneng.Therefore the Company owns control power over Zhencheng Comprehensive.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(1) Interest in subsidiaries (Cont’d)
(a) Composition of the Group (Cont’d)
(ii) Pinghai Power was acquired from GEGC by the Group in 2012 through offering non-public shares. According to the agreement between GEGC and
Guangdong Huaxia Electric Power Development Co. Ltd. (“Huaxia Electric”) which holds 40% equity in Pinghai Power the delegated shareholder and
director from Huaxia Electric maintain consensus with those of GEGC when exercising their voting rights during the shareholders’ meeting and Board of
Directors’ meeting at Pinghai Power; besides after GEGC transfers its 45% equity in Pinghai Power to the Company the delegated shareholder and director
from Huaxia Electric also reach consensus with those of the Company when exercising their voting rights during the shareholders’ meeting and Board of
Directors’ meeting at Pinghai Power. Therefore the Company owns the control power over Pinghai Power.
(b) Subsidiaries with significant minority interests
Subsidiaries
Gains and losses attributable
to minority shareholders (%)
Gains and losses attributable
to minority shareholders in
2018
Dividends distributed to
minority shareholders in 2018
Minority interests as at 31
December 2018
Jinghai Power 35.00% 41463227 73436079 1228252092
Zhanjiang Electric 24.00% 56187027 43848218 981073313
Huizhou Natural Gas 33.00% 85441192 61921153 652493223
Pinghai Power 55.00% 245899656 232044460 1132812046
Red Bay Power 35.00% 80617756 75052635 1155704809
Maoming Zhenneng 53.46% (33988525) - 702418868
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(1) Interest in subsidiaries (Cont’d)
(b) Subsidiaries with significant minority interests (Cont’d)
The major financial information of the significant non-fully-owned subsidiaries of the Group is listed below:
31 December 2018 31 December 2017
Current assets
Non-current
assets Total assets
Current
liabilities
Non-current
liabilities Total liabilities Current assets
Non-current
assets Total assets
Current
liabilities
Non-current
liabilities Total liabilities
Jinghai Power
1204643294 7994284373 9198927667
2607699843
3081936133 5689635976 1220230956 8519603527 9739834483 2649314880 3489876908 6139191788
Zhanjiang Electric 2970589465 1477137297 4447726762 332108967 27812323 359921290 2809749417 1600195341 4409944758 335297509 32069003 367366512
Huizhou Natural Gas 702242889 3486104915 4188347804 816535612 1394560000 2211095612 531864001 2867325353 3399189354 819036708 828770000 1647806708
Pinghai Power 1213521626 4504301232 5717822858 1167600036 2490564556 3658164592 1009047306 4875445336 5884492642 1359960430 2490065211 3850025641
Red Bay Power 943046924 5759863813 6702910737 1582252157 1818644840 3400896997 1010276845 6165453533 7175730378 1942232599 1907000000 3849232599
Maoming Zhenneng 424289071 2608341517 3032630588 1169249659 552952116 1722201775 508180380 2570370415 3078550795 1437413801 665144627 2102558428
2018 2017
Revenue Net profit/(loss)
Total comprehensive
income
Cash flows from
operating activities Revenue Net profit/(loss)
Total comprehensive
income
Cash flows from
operating activities
Jinghai Power 4871729888 118466364 118466364 1116414293 4811801719 233130409 233130409 1131168452
Zhanjiang Electric 1997634196 234112612 234112612 421420713 1944172914 163992141 163992141 328892120
Huizhou Natural Gas 2181208736 258912704 258912704 671596484 1727670061 208488731 208488731 372435087
Pinghai Power 3409291625 447090284 447090284 780998268 3392086464 436668322 436668322 942514472
Red Bay Power 4089089204 230336446 230336446 847911932 3916842705 238262334 238262334 391792666
Maoming Zhenneng 1552628327 (98577590) (98577590) 264329442 1606408261 (94333024) (94333024) 92024761
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(2) Interests in joint ventures and associates
(a) Basic information of significant joint ventures and associates
Major business
location
Place of
registration
Nature of
business
Whether strategic
to the Group's
activities Shareholding (%)
Direct Indirect
Joint venture -
Industry fuel Guangzhou Guangzhou Fuel trade Yes 50.00% -
Associates -
Yudean
Finance Guangzhou Guangzhou Finance Yes 25.00% -
Taishan
Electric Taishan Taishan
Power
generation Yes 20.00% -
The above equity investments are all measured using equity method by the Group.(b) Summarised financial information for significant joint ventures:
31 December
2018 31 December 2017
Industry fuel Industry fuel
Current assets 2925805788 3023652373
Including: Cash and cash equivalents 1358381277 1486090950
Non-current assets 229601671 238031473
Total assets 3155407459 3261683846
Current liabilities 1948258211 2049097586
Non-current liabilities 750000 -
Total liabilities 1949008211 2049097586
Net assets 1206399248 1212586260
Attributable to equity owners of the parent company 1206399248 1212586260
Shares of net assets based on shareholding (i) 603199624 606293130
Adjustments (614728) (614728)
Carrying value of equity investment in joint venture 602584896 605678402
Revenue 21313952451 20866250505
Financial expenses (14617463) 5757908
Income tax expenses (47849419) (54847117)
Net profit 144800961 167764414
Total comprehensive income 144800961 167764414
Dividends received from joint ventures by the Group for
the current year 75493986 59231115
(i) Share of asset is calculated according to shareholding based on the amount attributable to the
parent company in the consolidated financial statements of joint ventures. The amount in the
consolidated financial statements of joint ventures considers the impacts of fair value of
identifiable assets and liabilities of joint ventures at the time of acquisition and the unification of
accounting policies.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(2) Interests in joint ventures and associates (Cont’d)
(c) Summarised financial information for significant associates
31 December 2018 31 December 2017
Yudean Finance Taishan Electric Yudean Finance Taishan Electric
Current assets 8618449490 999098037 8683630097 940022602
Non-current assets 13958043611 12126348269 13100038881 13059475755
Total assets 22576493101 13125446306 21783668978 13999498357
Current liabilities 19713970097 2373171787 19034164167 2890641148
Non-current liabilities - 905200000 - 1300500000
Total liabilities 19713970097 3278371787 19034164167 4191141148
Minority interests - 1029541 - 979164
Attributable to equity
owners of the parent
company 2862523004 9846044978 2749504811 9807378045
Shares of net assets
based on
shareholding(i) 715630751 1969208996 687376205 1961475609
Adjustments
- Goodwill 13325000 - 13325000 -
Carrying value of equity
investment in
associates 728955751 1969208996 700701205 1961475609
Revenue 720277335 8171917086 639369624 6858639385
Net profit 341902454 646576934 301317539 596418401
Other comprehensive
income - - - (201400)
Total comprehensive
income 341902454 646576934 301317539 596217001
Dividends received from
associates by the
Group for the current
year 57221066 121582000 42295033 95281354
(i) Share of asset is calculated according to shareholding based on the amount attributable to the parent
company in the consolidated financial statements of associates. The amount in the consolidated financial
statements of associates considers the impacts of fair value of identifiable net assets and liabilities of
associates at the time of acquisition and the unification of accounting policies.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(2) Interests in joint ventures and associates (Cont’d)
(d) Summarised information for insignificant joint ventures and associates
2018 2017
Associates:
Aggregate carrying value of investment 3094385111 2533151196
Aggregate of the following items in
proportion
Net profit (i) 201011983 194143964
Other comprehensive income (i) - -
Total comprehensive income 201011983 194143964
(i) The net profit and other comprehensive income have taken into account the impacts of both the fair
value of the identifiable assets and liabilities at the time of acquisition and the unification of
accounting policies.
7 Segment information
The reportable segments of the Group are the business units that provide different products or
service or operate in the different areas. Different businesses or areas require different
technologies and marketing strategies the Group therefore separately manages the production
and operation of each reportable segment and evaluates their operating results respectively in
order to make decisions about resources to be allocated to these segments and to assess their
performance.The Group possesses 9 reportable segments in charge of power generating and selling in
different regions in Guangdong Province.Inter-segment transfer prices are measured by reference to selling prices to third parties.The assets are allocated based on the operations of the segment and the physical location of the
asset. The liabilities are allocated based on the operations of the segment. Expenses indirectly
attributable to each segment are allocated to the segments based on the proportion of each
segment’s revenue.
For the purposes of assessing segment performance and distributing resources among segments
the Group’s management regularly reviews assets liabilities income expenses and business
performance attributable to each reportable segment on the following bases:
Segment assets include all tangible assets intangible assets other long-term assets and current
assets like accounts receivable with the exception of deferred tax assets and other unallocated
corporate assets. Segment liabilities include payables and advances bank borrowings and interest
payable long-term and short-term debentures and dividends payable attributable to the individual
segments but exclude deferred tax liabilities.Segment financial performance represents operating income (including trading revenues from
external customers and inter-segment) deducting expenses depreciation amortisation and
impairment losses attributable to the individual segments and interest income and expense from
cash balances and borrowings directly attributable to one of the segments. The calculation of
pricing among inter-segments is determined with reference to similar terms for external parties.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Cont’d)
(a) Segment information as at and for the year ended 31 December 2018 is as follows:
The Company Jinghai Power Pinghai Power Red Bay Power
Maoming
Zhenneng
Zhanjiang
Electric
Zhongyue
Energy
Huizhou Natural
Gas Others Elimination Total
Revenue from external
customers 2284823995 4871729888 3409291625 4089089204 1545331653 1993542506 1542497777 2180616027 5491591503 - 27408514178
Inter-segment revenue 3075605 - - - 7296674 4091690 1271552 592709 71875490 (88203720) -
Cost of sales from
main operations (2132196128) (4384258761) (2587950472) (3528626139) (1569909568) (1746397799) (1561288213) (1743066440) (5070081609) 87360774
(24236414355)
Interest income 6208285 1135898 2892161 1478243 1365958 24094462 4583619 961770 20751410 - 63471806
Interest expenses (206465168) (213894860) (129287358) (131609629) (74849514) - (135978016) (22353471) (440806283) 44738808 (1310505491)
Investment income
from associates and
joint ventures 484016449 - - - - - - - 6366187 (2179174) 488203462
Asset impairment
losses (154226974) - - - (466128) (1851181) - (25324987) (68719281) (1101246) (251689797)
Depreciation and
amortisation (123267737) (619218749) (383999531) (474114339) (192599652) (142148483) (294131700) (287104648) (944316077) 25424330 (3435476586)
Total profit 1181419218 156165659 603353600 308745939 (128604361) 268457570 (187820258) 346706972 (267214852)
(1036011817) 1245197670
Income tax expenses (5383646) (37699295) (156263316) (78409493) 30026771 (34344958) 49806751 (87794268) (33374020) 18335241 (335100233)
Net profit 1176035572 118466364 447090284 230336446 (98577590) 234112612 (138013507) 258912704 (300588872) (1017676576) 910097437
Total assets
29267345052 9198927667 5717822858 6702910737 3032630588 4447726762 4386995844 4188347804 27967600618 (21580645624) 73329662306
Total liabilities 5554859651 (5689635976) 3658164592 3400896997 1722201775 359921290 3487568624 2211095612 29696219014 (2589450920) 41811840659
Non-cash expenses
other than
depreciation and
amortisation - - - - - - - - - - -
Long-term equity
investments in
associates and joint
ventures 6340869567 - - - - - - - 60774048 (6508861) 6395134754
Addition of non-current
assets (i) (214606469) (524416986) (371144104) (396943951) 12153820 (108600024) (166751401) 616712362 1470735090 419521941 736660278
(i) Non-current assets are excluding financial assets long-term equity investments and deferred tax assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Cont’d)
(b) Segment information as at and for the year ended 31 December 2017 is as follows:
The Company Jinghai Power Pinghai Power Red Bay Power
Maoming
Zhenneng
Zhanjiang
Electric
Zhongyue
Energy
Huizhou Natural
Gas Others Elimination Total
Revenue from external
customers 2117444166 4811801719 3392086464 3916842705 1606408261 1938695991 1289553459 1727670061 5843289231 - 26643792057
Inter-segment revenue 55725 - - - - 5476923 - 189442 105726117 (111448207) -
Cost of sales from
main operations (2014615189) (4159809344) (2594540505) (3344808620) (1609917306) (1700604512) (1353391795) (1382065573) (5244068216) 125885351 (23277935709)
Interest income 4215500 1301144 4647642 2223345 1085577 21691173 5932507 1043048 23013450 - 65153386
Interest expenses (199610835) (217463086) (130480952) (141256534) (72192499) - (130885418) (24633056) (382700760) 39128388 (1260094752)
Investment income
from associates and
joint ventures 430233196 - - - - - - - 6174446 - 436407642
Asset impairment
losses (673578111) - - (438532) - (15137474) (12990036) - (92177648) 648567427 (145754374)
Depreciation and
amortisation (126140089) (683130808) (388880201) (539874860) (203959542) (155323006) (280559563) (236575168) (971157375) 19041857 (3566558755)
Total profit 644885699 305415844 595737707 318743687 (126843762) 221664415 (251416610) 278104155 (75614981) (356465679) 1554210475
Income tax expenses 51661211 (72285435) (159069385) (80481353) 32510738 (57672274) 28865939 (69615424) (86670748) (3732585) (416489316)
Net profit 696546910 233130409 436668322 238262334 (94333024) 163992141 (222550671) 208488731 (162285729) (360198264) 1137721159
-
Total assets 27497912825 9739834483 5884492642 7175730378 3078550795 4409944758 4946405691 3399189354 26351807529 (21476453132) 71007415323
-
Total liabilities 4954412031 6139191788 3850025641 3849232599 2102558428 367366512 3908964964 1647806708 17863335579 (3378338940) 41304555310
Non-cash expenses
other than
depreciation and
amortisation - - - - - - - - - - -
Long-term equity
investments in
associates and joint
ventures 5738255738 - - - - - - - 62750674 - 5801006412
-
Addition of non-current
assets (i) (242705204) (338555488) (343277481) (380351943) (100252081) (19709710) (422727415) 606161826 297184387 876337749 (67895360)
(i) Non-current assets are excluding financial assets long-term equity investments and deferred tax assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Cont’d)
(c) Geographical information
The Group’s operating income derives from the development and operation of electric plants in
China and all assets are within China.
(d) Major customers
In 2018 the revenue from GPGC and its subsidiaries was RMB 26949774763 (2017: RMB
26250079293) which took up 98.33% of the Group’s operating income (2017: 98.52%).
8 Related parties and related party transactions
(1) General information of the parent company
(a) General information of the parent company
Place of registration Nature of business
GEGC Guangzhou
Operation and management of power generation
enterprises capital management of electricity assets
construction of power plant and sales of electricity
Ultimate holding party of the Company is State-owned Assets Supervision And Administration
Commission of the People's Government of Guangdong Province.
(b) Registered capital and changes in registered capital of the parent company
31 December
2017
Increase in the
current year
Decrease in the
current year
31 December
2018
GEGC 23000000000 - - 23000000000
(c) The percentages of shareholding and voting rights in the Company held by the parent company
31 December 2018 31 December 2017
Shareholding
(%) Voting rights (%)
Shareholding
(%) Voting rights (%)
GEGC 67.39% 67.39% 67.39% 67.39%
(2) Information of subsidiaries
The general information and other related information of the subsidiaries are set out in Note 6(1)(a).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Information of joint ventures and associates
Apart from material joint ventures and associates disclosed in Note VI other joint ventures and
associates that involved in related party transactions with the Company are listed as follows:
Name of entity Relationship with the Group
Yudean Shipping Associate
(4) Information of other related parties
Relationship with the Group
Maoming Thermal Controlled by GEGC
Shaoguan Electric Power Plant Controlled by GEGC
Guangdong Yudean Shajiao C Power Plant (“Shajiao C”) Controlled by GEGCGuangdong Zhuhai Jinwan Power Co. Ltd. (“Zhuhai Jinwan
Electric”) Controlled by GEGC
Guangdong Yudean Property Management Co. Ltd.(“Yudean PM”) Controlled by GEGC
Guangdong Yudean Information Technology Co. Ltd.(“Yudean Technology”) Controlled by GEGCGuangdong Yudean Property Investment Co. Ltd. (“YudeanPI”) Controlled by GEGCZhuhai Grand Power Energy Development Co. Ltd. (“ZhuhaiGrand Power”) Controlled by GEGC
Yudean Environmental Controlled by GEGC
Shenzhen Tianxin Controlled by GEGC
Guangzhou Huangpu Power Engineering Co. Ltd.(“Huangpu Power Engineering”) Controlled by GEGC
Guangzhou Huangpu Yuehua Power Plant HumanResources Co. Ltd. (“Huangpu Yuehua HumanResources”) Controlled by GEGC
Inner Mongolia Yudean Menghua New Energy Co. Ltd.(“Menghua New Energy”) Controlled by GEGC
Guangdong Yuehua Power Co. Ltd. (“Yuehua Power”) Controlled by GEGC
Guangdong Yudean Yunhe Power Co. Ltd. (“Yunhe Power”) Controlled by GEGCGuangdong Yuelong Power Generation Co. Ltd. (“YuelongPower”) Controlled by GEGC
Guangdong Yudean Zhongshan Thermal Power Plant
(“Zhongshan Thermal”) Controlled by GEGC
Guangdong Port of Yangjiang Harbour Service Co. Ltd.(“Port of Yangjiang”) Controlled by GEGC
Guangzhou Development District Yudean New Energy Co.Ltd. (“Yudean New Energy”) Controlled by GEGC
Guangdong Guanghe Power Co. Ltd. (“Guanghe Power”) Controlled by GEGCGuangdong Xinhui Power Generation Co. Ltd. (“XinhuiPower”) Controlled by GEGCGuangdong Yudean Natural Gas Co. Ltd. (“Yudean NaturalGas”) Controlled by GEGC
Guangdong Yudean Fengshuba Power Generation Co. Ltd.
(“Fengshuba Power”) Controlled by GEGC
Guangdong Yudean Changhu Power Generation Co. Ltd.
(“Changhu Power”) Controlled by GEGC
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Information of other related parties (Cont’d)
Relationship with the GroupGuangdong Yudean Qingxi Power Generation Co. Ltd. (“QingxiPower”) Controlled by GEGC
Guangdong Yudean Liuxihe Power Generation Co. Ltd.(“Liuxihe Power”) Controlled by GEGC
Guangdong Province Zhuhai Power Generation Co. Ltd.(“Zhuhai Electric”) Controlled by GEGC
Guangdong Yudean Xinfengjiang Power Generation Co. Ltd.(“Xinfengjiang Power”) Controlled by GEGC
Guangdong Yudean Zhanjiang Biomass Power Generation Co.Ltd. (“Zhanjiang Biomass”) Controlled by GEGC
Guizhou Yueqian Electric Co. Ltd. (“Yueqian Electric”) Controlled by GEGC
Guangdong Yudean Changtan Power Generation Co. Ltd.
(“Changtan Power”) Controlled by GEGC
Guangdong Yudean Ship Management Co. Ltd. (“Yudean Ship”) Controlled by GEGCGuangzhou Yudean Huizhou New Energy Co. Ltd. (“HuizhouNew Energy”) Controlled by GEGC
Yudean Leasing Controlled by GEGC
Guangdong Yudean Nanshui Power Generation Co. Ltd.(“Nanshui Power”) Controlled by GEGC
Yudean Property Self-Insurance Controlled by GEGC
(5) Related party transactions
(a) Purchase and sales of goods and rendering and receiving of services
Purchase of goods and receiving of services:
Related parties
Type of related party
transaction
Pricing policy of
related party
transaction 2018 2017
Industry fuel Purchase of fuel Agreement price14352059858 14389960951
Yudean Natural Gas Purchase of fuel Agreement price 497452121 260827167
Yudean Environmental Purchase of materials Agreement price 148417712 118654832
Yudean PM
Receipt of property
services Agreement price 31653612 31553554
Yudean Shipping Receipt of tug services Agreement price 23213805 24720000
Yudean Property
Self-Insurance
Receipt of insurance
services Agreement price 19958353 -
Huangpu Power
Engineering
Receipt of maintenance
and repair services Agreement price 16989393 11533589
Port of Yangjiang Receipt of tug services Agreement price 9247217 8029908
Huangpu Yuehua
Human Resources
Receipt of human resource
outsourcing services Agreement price 5828481 14570164
Yudean Technology
Receipt of management
services Agreement price 3906107 2864767
Yudean PI
Receipt of management
services Agreement price 40541 -
Maoming Thermal Purchase of materials Agreement price - 2724380
Yunhe Power
Receipt of distribution
services Agreement price - 1548428
Zhuhai Jinwan Electric
Receipt of distribution
services Agreement price - 206533
15108767200 14867194273
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(a) Purchase and sales of goods and rendering and receiving of services (Cont’d)
Sales of goods or rendering of services:
Related parties
Type of related party
transaction
Pricing policy of
related party
transaction 2018 2017
Yudean
Environmental
Revenue from sales of
by-products Agreement price 189652273 158181213
Shajiao C
Provision of maintenance
and repair services Agreement price 30485136 33858057
Yunhe Power
Provision of maintenance
and repair services Agreement price 8368980 8377100
Yunhe Power Income from transferring coal Agreement price 8194149 14676471
Zhuhai Jinwan
Electric
Provision of maintenance
and repair services Agreement price 2934438 126904
GEGC Provision of custody services Agreement price 2070690 -
Yudean New Energy
Provision of maintenance
and repair services Agreement price 923603 651395
Xinhui Power Provision of training services Agreement price 526038 1456767
Zhongshan Thermal Provision of training services Agreement price 435144 -
Huizhou New Energy
Provision of maintenance
and repair services Agreement price 235983 -
Yuelong Power Provision of training services Agreement price 32004 -
Yuehua Power Provision of training services Agreement price 20246 2175049
Zhuhai Electric Provision of training services Agreement price 14528 -
Fengshuba Power Provision of training services Agreement price 14528 -
Liuxihe Power Provision of training services Agreement price 14528 -
Zhanjiang Biomass Provision of training services Agreement price 14528 -
Changtan Power Provision of training services Agreement price 14528 -
Yueqian Power Provision of training services Agreement price 14528 -
Yunhe Power Provision of training services Agreement price 14528 -
Shajiao C Provision of training services Agreement price 12547 -
Zhuhai Jinwan
Electric Provision of training services Agreement price 12302 -
Yudean Ship Provision of training services Agreement price 11887 -
Xinfengjiang Power Provision of training services Agreement price 10896 -
Changhu Power Provision of training services Agreement price 7264 -
Nanshui Power Provision of training services Agreement price 3632 -
Qingxi Power Provision of training services Agreement price 3632 -
Zhuhai Jinwan
Electric
Electricity income from
deviation assessment Agreement price - 4208214
Yunhe Power
Electricity income from
deviation assessment Agreement price - 3205702
Guanghe Power
Electricity income from
deviation assessment Agreement price - 1868165
Yuelong Power
Electricity income from
deviation assessment Agreement price - 788661
Menghua New
Energy
Provision of consulting
services Agreement price - 308871
Yuehua Power
Electricity income from
deviation assessment Agreement price - 129932
244042540 230012501
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(b) Purchase of electric power
Related parties 2018 2017
Guanghe Power 127274483 25568631
Zhuhai Jinwan
Electric 121802871 55868421
Yunhe Power 38780195 37018286
Yuehua Power 26059755 1318520
Yuelong Power 11951043 8427938
325868347 128201796
The amount for purchase of electric power is determined by the difference of decrease in current
feed-in tariff and purchased quantity of electricity agreed by companies selling electric power and
power plants from related parties.(c) Leases
The Group as the lessee:
Name of lessor
Type of the leased
assets
Leasing payment
recognised in
2018
Leasing payment
recognised in
2017
Yudean PI Housing rental 8145254 8293375
Yudean PI Billboard rental 776478 760686
Maoming Thermal Land rental - 1043884
Maoming Thermal Housing rental - 148005
Yuehua Power Housing rental - 25826
8921732 10271776
The Group as the lessor:
Name of lessee
Type of the leased
assets
Leasing income
recognised in
2018
Leasing income
recognised in
2017
Yudean PM
Housing
rental 192000 -
Yudean Shipping
Housing
rental 39077 -
Shajiao C Housing rental - 195524
231077 195524
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(d) Guarantee
The Group as the guaranteed party:
Guarantor
Guaranteed
amount Starting date Maturity date
Whether the guarantee
has been fulfilled or not
GEGC 1500000000 14/08/2013 13/08/2022 No
(e) Lending among related parties
(i) According to the 2018 Framework Agreement on Financial Services between the Company and
Yudean Finance Yudean Finance is committed to offering the Group a credit line of less than RMB
17000000000 in 2018. In 2018 the Group borrowed a total of RMB 8688316390 (2016: RMB
8468213230) from Yudean Finance based on actual capital requirement. The Group paid an
interest of RMB 352108769 (2017: RMB 297702035) for such borrowings (Note 8(5)(i)).(ii) In 2018 the net amount of the Group’s deposits in Yudean Finance increased by RMB
825817906 (2017: a net decrease of RMB 646703288). Interest due from Yudean Finance
amounted to RMB 60293273 (2017: RMB 60170777). In light of the frequent deposits and
withdrawals the Group only disclosed the amount of net change in deposits.(iii) As disclosed in Note 4(23)(a) according to the three-party agreement signed among the Group
Yudean Finance and Industry Fuel the amount of the notes issued to Industry Fuel by the Group
and discounted with Yudean Finance represents the amount payable to Yudean Finance. Given
the frequent transactions only the net change of the balance of commercial acceptance notes
discounted with Yudean Finance as at 31 December is disclosed. As at 31 December 2018 the net
amount of Yudean Finance’s discounting of acceptance notes issued by the Group to Industry Fuel
increased by RMB 423161107. In 2018 the discounting interest charged by Yudean Finance and
borne by the Group which was included in the discounting interest expenses in the year amounted
to RMB 13243370.(iv) Based on the Framework Agreement on Financial Lease between the Company and Yudean
Leasing Yudean Leasing is committed to offering the Group a credit line of less than RMB 500
million which is reusable during the one-year agreement period. As at 31 December 2018 the
balance of Bohe Coal’s long-term payables of finance lease through leaseback was RMB
906981377 (2017: Nil) and its interest expenses recorded in construction in progress was RMB
25860877 (2017: Nil); the balance of Qujie Wind Power’s long-term payables of finance lease was
RMB 240830581 (2017: Nil) and the interest payable on the lease amounted to RMB 2167970
(2017: Nil) while the interest expenses recorded in construction in progress amounted to RMB
2469636 (2017: Nil).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(e) Lending among related parties (Cont’d)
(v) Transactions between the Company and its subsidiaries
As at 31 December 2018 and 31 December 2017 the balance of non-secured loans borrowed by
the Company from its subsidiaries was RMB 1100000000 with no change in this year (2017: net
increase of RMB 800000000) and the annual interest rate was 3.92% (2017: 3.92%). An interest
expense of RMB 40457667 (2017: RMB 37916159) was recognised. The balance of borrowings
at the end of 2018 was RMB 1100000000 (2017: RMB 1100000000). The Company only
discloses the net change in loan of capital with its subsidiaries due to the frequent transaction of
funds.
In 2018 the net increase in non-secured loans provided by the Company to its subsidiaries was
RMB 240000000 (2017: net decrease of RMB 33540000) with an annual interest rate from
4.75% to 5.23% (2017: 4.75% to 4.99%). An interest income of RMB 18545516 (2017: RMB
17784373) was recognised. The balance of borrowings at the end of 2018 was RMB 641460000
(2017: RMB 401460000). The Company only discloses the net change in loan of capital with its
subsidiaries due to the frequent transaction of funds.(f) Payment by related parties on behalf of the Group
2018 2017
Shaoguan Electric Power Plant - 613807
(g) Allocation of common expenses
The Company’s branches Shajiao A and Shajiao C agreed to share common expenses based on
their agreed allocation percentage. In 2018 the common expenses received by the Group from
Shajiao C was RMB 4516707 (2017: RMB 2642602).(h) Interest income
2018 2017
Interest on deposits paid by Yudean Finance 60293273 60170777
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(i) Interest expenses
2018 2017
Interest on borrowings paid to Yudean
Finance 352108769 297702035
Notes discounting interest paid to Yudean
Finance 13243370 13638031
Finance lease interest paid to Yudean
Leasing 28330513 -
393682652 311340066
In 2018 the loans provided by Yudean Finance to the Group carry an annual interest rate from
3.92% to 4.66% (2017: from 3.92% to 4.53%).
(j) Purchas of assets from related parties
2018 2017
Shaoguan Electric Power Plant 167735823 -
In 2018 the Company’s subsidiary Yuejiang Power acquired certain land buildings and power
generation equipments at RMB 167735823 from Shaoguan Electric Power Plant. The carrying
amount of the acquired fixed assets and land use right is RMB 25824023 and RMB 141911800
respectively.(k) Joint investment
As at 31 December 2018 subsidiaries joint ventures and associates jointly invested by the Group
and GEGC were listed below:
Percentage of equity attributable to GEGC
Maoming Zhenneng 30.12%
Bohe Coal 33.00%
Yudean Finance 65.00%
Industry fuel 50.00%
Shanxi Yudean Energy 60.00%
Yudean Property Self-Insurance 51.00%
Western Investment 35.00%
(l) Remuneration of key management
2018 2017
Remuneration of key management 5411185 3859328
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties
Receivables from related parties
31 December 2018 31 December 2017
Ending
balance
Provision for
bad debts
Ending
balance
Provision for
bad debts
Cash at bank
and on
hand Yudean Finance 4978118712 - 4152300806 -
Notes and
accounts
receivables Shajiao C 10466023 - 13185631 -
Yunhe Power 2817688 - 2526785 -
Yudean New
Energy 1062659 - 762132 -
Huizhou New
Energy 273740 - - -
Yuelong Power 18000 - 15550 -
Zhuhai Jinwan
Electric - - 4923611 -
Guanghe Power - - 35177 -
14638110 - 21448886 -
Other
receivables
Yudean
Environmental 54456181 - 136540065 -
Yudean Finance 18856569 - 14923771
GEGC 2070690 - 65767 -
Shajiao C 1663292 - 253097 -
Yudean PI 1267802 - 1274519 -
Xinhui Power 549900 -
Yudean PM 543732 - 413282 -
Menghua New
Energy - - 241844 -
79408166 - 153712345 -
Advances to
suppliers Industry fuel 547209560 - 589294868 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
Payables to related parties (Cont’d)
31 December 2018 31 December 2017
Notes payable
and accounts
payable Industry fuel 1449619847 1531185052
Yudean Finance 653161107 230000000
Yudean Environmental 34526337 62871339
Huangpu Yuehua Human
Resources 286313 566250
Maoming Thermal - 89461265
Huangpu Power
Engineering - 3335568
Yunhe Power - 1006553
Zhuhai Jinwan Electric - 218925
Yudean Technology - 68000
Zhuhai Grand Power - 37183
Yuelong Power - 34071
2137593604 1918784206
31 December 2018 31 December 2017
Other
payables Yuehua Power 58000000 -
Yudean Finance 13356633 10451874
Yudean PM 7730098 5300494
Yudean Shipping 5312830 4280000
Huangpu Power Engineering 4818353 2451285
Yudean Leasing 2167970 -
Huangpu Yuehua Human
Resources 1622290 1701219
Yudean Environmental 1414106 631264
Yudean Technology 1130960 1028740
Yudean Property
Self-Insurance 400000 -
Shenzhen Tianxin 70000 70000
Shaoguan Electric Power
Plant - 11024853
Maoming Thermal - 7187525
Yudean PI - 1360639
96023240 45487893
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
Payables to related parties (Cont’d)
31 December 2018 31 December 2017
Short-term
borrowings Yudean Finance 5042000000 5637000000
Current portion of
non-current
liabilities Yudean Finance 143919490 191763707
Long-term
borrowings Yudean Finance 2833766371 2533388877
Long-term
payables Yudean Leasing 1147811958 -
Part of information on short-term borrowings and long-term borrowings obtained from related
parties is disclosed in Notes 4(19) 4(25) and 4(27); details on notes payable discounted by
Yudean Finance is disclosed in Note 4(20)(a); details on long-term payables provided by Yudean
Leasing is disclosed in Note 4(29)(a). Except for the aforesaid borrowings notes payable and
long-term payables other receivables from and payables to related parties are interest-free and
unsecured current accounts that will be paid off when needed.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(7) Commitments in relation to related parties
Leases
31 December 2018 31 December 2017
- Lessee
Yudean PI 18622911 8264642
Maoming Thermal - 23920348
18622911 32184990
(8) Investment commitments
As at 31 December 2018 the Group did not make any investment commitments with related
parties.
9 Contingencies
(1) As at 31 December 2018 the Company provided joint guarantee for bank borrowings amounting to
RMB 98310000 for Yunnan Baoshan Binlangjiang Hydroelectricity Development Co Ltd. of which
the liability relief procedure is being handled.
(2) As at 31 December 2018 the Company provided joint guarantee for bank borrowings from
European Investment Bank amounting to RMB 74798535 for Zhanjiang Wind Power (Note
4(27)(a)(v)); and the Company provided joint guarantee for bank borrowings amounting to RMB
44000000 (Note 4(27)(c)) for Yuejiang Power based on the percentage of equity owned in
Yuejiang Power.
(3) Pinghai Power failed to complete settlement with one of its engineering contractors due to the
dispute of settlement regarding construction contracts. On 22 October 2018 the contractor filed a
lawsuit in the local municipal people's court urging Pinghai Power to make payment for the
additional construction expenses of RMB 165978408 arising from modification of scope of
contract and the interest of RMB 72478979 arising from delay in payment. On 8 January 2019
the contractor also filed a lawsuit in the local people's court at the county level urging Pinghai
Power to make payment for the additional construction expenses of RMB 12080481 arising from
modification of scope of contract and the interest of RMB 5554311 arising from delay in payment.
On 1 April 2019 Pinghai Power had received subpoena from the local municipal people’s court
and the lawsuit is expected for hearing on 14 May 2019. As at the issuance date of the report
according to the suggestion of legal adviser since the lawsuits were still pending for hearing
management of the Group could not estimate the litigation result thus no construction expenses
and interest related to the lawsuits were presented in the financial statements for the year ended
31 December 2018.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments
(1) Capital commitments
Capital expenditures contracted for by the Group but are not yet necessary to be recognised on the
balance sheet as at the balance sheet date are as follows:
31 December 2018 31 December 2017
Buildings and power generation equipment 8351174768 4974441491
The above capital commitments will be primarily used for the construction of new electric plants and
the purchase of new generator units.
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts
are summarised as follows:
31 December 2018 31 December 2017
Within 1 year 16483957 8721054
1 to 2 years 12699701 6569416
2 to 3 years 2235203 4000026
Over 3 years 8375246 30360476
39794107 49650972
(3) Implementation of prior commitments
(a) The Eighth Session of the Board approved the Proposal of Joint Establishment of Guangdong
Yudean Property Self-Insurance Co. Ltd. during its 9th meeting on 12 November 2015. In order to
enhance the Company’s capability of managing quantitative risks and insurance the board agreed
to establish Guangdong Yudean Property Self-Insurance Co. Ltd. with Yudean the controlling
shareholders in which the Company contributed RMB147000000 and accounted for 49% of the
equity. The Ninth Session of the Board approved the Proposal of Increasing Capital for Guangdong
Yudean Property Self-Insurance Co. Ltd. during its 3rd meeting on 26 April 2018. In order to
further enhance Yudean Property Self-Insurance’s capability for providing insurance services and
improve risk resistance capacity the Company agreed to increase a capital of RMB 98000000 for
Yudean Property Self-Insurance at an equity proportion of 49%. As at 31 December 2018 the
Company had injected RMB 98000000 and the accumulated injection of capital fund was RMB
245000000.
(b) The Ninth Session of the Board approved the Proposal of Establishment of Zhuhai Jinwan Offshore
Wind Power Co. Ltd. during its 3rd meeting on 26 April 2018. In order to accelerate the subsequent
work for Zhuhai Jinwan offshore wind power project the Board gave permission to its wholly-owned
subsidiary Guangdong Wind Power for the establishment of Zhuhai Wind Power. Guangdong Wind
Power should be responsible for the investment development and construction of Zhuhai Jinwan
offshore wind power project. The capital for Phase I amounts to RMB 65000000. As at 31
December 2018 the Company had injected capital of RMB 65000000 to Zhuhai Wind Power.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments (Cont’d)
(3) Implementation of prior commitments (Cont’d)
(c) The Ninth Session of the Board approved the Proposal of Investment in Construction of Zhanjiang
Wailuo Offshore Wind Power Project (Phase I) during its 1st communication meeting on 23 March
2018. In order to actively implement the energy development plans made by the State and
Guangdong Province greatly develop clean energy and accelerate the optimisation of electric
generator structure the Board gave permission to its wholly-owned subsidiary Qujie Wind Power
for the construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase I). The installation
capacity of the project reached at 198MW and the total investments hit RMB 3739450000. The
capital fund was recorded as RMB 747890000 at a proportion of 20%. Based on the progress of
project construction and capital demand the Company would increase capital for Qujie Wind
Power if necessary. As at 31 December 2018 the Company had injected capital fund of RMB
500000000 to Qujie Wind Power.
(d) The Ninth Session of the Board approved the Proposal of Launching the Preliminary Work of
Zhanjiang Wailuo Offshore Wind Power Project (Phase II) during its 1st communication meeting
on 23 March 2018. In order to give full play to the regional resource information and personnel
advantages gained in the construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase I)
and seize the opportunities to accelerate the offshore wind power the Board agreed to launch the
preliminary work of Zhanjiang Wailuo Offshore Wind Power Project (Phase II) with a planned total
installation capacity of 200 MW. The Company’s wholly-owned subsidiary Qujie Wind Power
should be responsible for the detailed preliminary work. Expenses for the preliminary work were
controlled to RMB 48000000 which would be settled via capital increase to Qujie Wind Power by
the Company. As at 31 December 2018 the Company had injected capital fund of RMB
48000000 to Qujie Wind Power.
(e) The Eighth Session of the Board approved the Proposal of Establishment of Yudean Yangjiang
Offshore Wind Power Co. Ltd. during its 6th meeting on 27 April 2015. The Board gave permission
to the Company’s wholly-owned subsidiary Guangdong Wind Power for the establishment of
Yangjiang Wind Power in Yangjiang which was deemed as the main part of investment in
Yangjiang Shapa offshore wind power project. The registered capital for Phase I amounted to
RMB 55000000 which would be settled via capital increase to Guangdong Wind Power by the
Company. In order to step up for the scale development of the Company’s new energy power
generation improve the proportion of clean energy installation and optimise the structure of power
source the Board agreed on the investment in and construction for Shapa Project by Yangjiang
Wind Power with a dynamic total investment of RMB 5963270000. The capital fund was
calculated as RMB 1192660000 at a proportion of 20%. Deducting the preliminarily registered
capital of RMB 55000000 the Company still requires a capital increase of RMB 1137660000.
As at 31 December 2018 the Company had injected RMB 300000000 and the accumulated
injection of capital fund was RMB 355000000.(f) The Ninth Session of the Board approved the Proposal of Increasing Capital for Guangdong
Province Wind Power Generation Co. Ltd. during its 5th meeting on 29 August 2018. Huilai Wind
Power proposed to carry out technical transformation to Haiwan Shifeng Power Plant for which
Guangdong Wind Power proposed to increase a capital of RMB 39000000. To meet the capital
requirement of technical transformation the Board agreed to increase the capital by RMB
39000000 for the technical transformation project at Haiwan Shifeng Wind Plant. As at 31
December 2018 the Company had not injected capital fund to Guangdong Wind Power.
(g) The Ninth Session of the Board approved the Proposal on Involvement in Capital and Share
Increase of Shenzhen Capital Group Co. Ltd. during its 2nd communication meeting on 19
September 2018. In order to meet the requirement of SCG’s strategic development the Company
was allowed to increase capital of RMB 213034000 to SCG at an equity proportion of 3.673%
under the written approval of State-owned Assets Supervision and Administration Commission of
the People's Government of Shenzhen Municipal. An amount of RMB 65135200 has been
injected in 2018 and the remaining RMB 147898800 would be injected within 2020. As at 31
December 2018 the Company had injected RMB 65135200.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments (Cont’d)
(3) Implementation of prior commitments (Cont’d)
(h) The Seventh Session of the Board approved the Proposal of Investment in Phase II Thermal Power
Cogeneration Project of Huizhou LNG Electric during its 14th meeting in April 2013. According to
the proposal the Board permits the Company to invest in Phase II Thermal Power Cogeneration
Project of Huizhou LNG Electric with the contribution ratio of 67%. The capital is about RMB
569000000 in total which will be made in batches based on the project progress and capital
requirement. The Company injected RMB 42670000 and RMB 52330000 respectively in
September and December 2017. As at 31 December 2018 the Company had injected RMB
103578300 and the accumulated injection of capital fund was RMB 198668300.
11 Events after the balance sheet date
(1) As stated in Note 4(11)(a)(iv) the Company expected that the estimated useful life of relevant fixed
assets would be significantly affected according to the current shoutdown scheme of Shajiao A.
According to the Proposal on Adjustment for the Depreciation Periods for Fixed Assets of Shajiao A
approved by the Ninth Session of the Board during its 7th meeting on 25 January 2019 adjustments
were made to the depreciation periods of related fixed assets: 2&3# generator units would be
depreciated over their remaining useful life of one year while the power generating equipment and
the accessory equipment for production and management of 4&5# generator units would be
depreciated over their remaining useful lives of 5 years and the buildings would all be depreciated
over their remaining useful lives of 5 years. As at 31 December 2018 the carrying amount of
Shajiao A’s long-term assets related to the generator units under the accelerated depreciation was
RMB 668744890. Due to such matter management of the Company expected that the net profit
and owners’ equity for the year ended 31 December 2019 would decrease by RMB 173571346.
(2) According to the resolution at the Board of Directors’ meeting dated on 11 April 2019 the Board
suggested the Group appropriating 10% and 25% of net profit amounting to RMB 117603557 and
RMB 294008893 to the statutory surplus reserves and the discretionary surplus reserve
respectively (2017: the Group appropriated RMB 69654691 of statutory surplus reserves and RMB
174136728 of discretionary surplus reserve). Meanwhile the Board also suggested the Group
distributing cash dividends of RMB 315017039 to its shareholders at RMB 0.6 per 10 shares
(2017: the Group distributed cash dividends of RMB 420022719 to the shareholders at RMB 0.8
per 10 shares). The proposal is still pending for the approval of the shareholders’ meeting. The cash
dividends proposed after the balance sheet date have not been recognised as liabilities at the
balance sheet date.
12 Financial risk
The Group's activities expose it to a variety of financial risks: market risk (primarily including foreign
exchange risk interest rate risk and price risk) credit risk and liquidity risk. The Group's overall risk
management programme focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the
transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from
the recognised assets and liabilities and future transactions denominated in foreign currencies
primarily with respect to US dollars. The Group’s finance department at its headquarters is
responsible for monitoring the amount of assets and liabilities and transactions denominated in
foreign currencies to minimise the foreign exchange risk. Therefore the Group may take proper
measures to mitigate the foreign exchange risk. During 2018 and 2017 the Group did not enter into
any forward exchange contracts or currency swap contracts.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As at 31 December 2018 and 31 December 2017 the financial assets and the financial liabilities
denominated in foreign currencies were expressed in RMB as follows:
31 December 2018
USD EUR HKD Total
Financial assets
denominated in
foreign currency -
Cash at bank and on
hand 1304 - 11288 12592
Financial liabilities
denominated in
foreign currency -
Long-term borrowings 68270542 3537220 - 71807762
Current portion of
non-current liabilities 6527993 2469081 - 8997074
74798535 6006301 - 80804836
31 December 2017
USD EUR HKD Total
Financial assets
denominated in
foreign currency -
Cash at bank and on
hand 1241 - 10767 12008
Financial liabilities
denominated in
foreign currency -
Long-term borrowings 67525556 5971857 - 73497413
Current portion of
non-current liabilities 10062668 2454923 - 12517591
77588224 8426780 - 86015004
As at 31 December 2018 if the RMB had strengthened/weakened by 10% against the USD while
all other variables had been held constant the Group's net profit for the year would have been
approximately RMB 5609792 (31 December 2017: approximately RMB 5819024) higher/lower
for various financial assets and liabilities denominated in USD.
As at 31 December 2018 if the RMB had strengthened/weakened by 10% against the EUR while
all other variables had been held constant the Group’s net profit for the year would have been
approximately RMB 450472 (31 December 2017: RMB 632009) higher/lower for various financial
liabilities denominated in EUR whose recording currency is RMB.
As at 31 December 2018 if the RMB had strengthened/weakened by 10% against the HKD while
all other variables had been held constant the Group’s net profit for the year would have been
approximately RMB 847 (31 December 2017: RMB 808) lower/higher for various financial assets
denominated in HKD.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial risk (Cont’d)
(1) Market risk (Cont’d)
(b) Interest rate risk
The Group’s interest rate risk mainly arises from long-term interest bearing borrowings including
long-term borrowings debentures payable and long-term payables. Financial liabilities issued at
floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed
rates expose the Group to fair value interest rate risk. The Group determines the relative
proportions of its fixed rate and floating rate contracts depending on the prevailing market
conditions. As at 31 December 2018 the Group’s long-term interest bearing borrowings were
mainly floating rate contracts denominated in RMB amounting to RMB 20933523320 (31
December 2017: RMB 21013983110).
The Group’s finance department at its headquarters continuously monitors the interest rate position
of the Group. Increases in interest rates will increase the cost of new borrowing and the interest
expenses with respect to the Group’s outstanding floating rate borrowings and therefore could
have a material adverse effect on the Group’s financial position. The Group determines the
proportions of its fixed rate and floating rate contracts depending on the prevailing market
conditions and performs periodic reviews and monitors to maintain appropriate combinations of
fixed and floating rates. In 2018 and 2017 the Group did not hedge the interest rate risk with
derivative financial instruments.
As at 31 December 2018 if interest rates on the floating rate borrowings had risen/fallen by 10
basis points while all other variables had been held constant the Group’s net profit would have
decreased/increased by approximately RMB 17884606 (31 December 2017: rise/fall by 10 basis
points approximately RMB 18043307).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial risk (Cont’d)
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank notes
and accounts receivables other receivables etc.The Group expects that there is no significant credit risk associated with cash at bank since they
are deposited at Yudean Finance state-owned banks and other medium or large size listed banks.Management does not expect that there will be any significant losses from non-performance by
these counterparties.In addition the Company has policies to limit the credit exposure on notes and accounts
receivables and other receivables. The Group assesses the credit quality of and sets credit limits
on its customers by taking into account their financial position the availability of guarantee from
third parties their credit history and other factors such as current market conditions. The credit
history of the customers is regularly monitored by the Group. In respect of customers with a poor
credit history the Group will use written payment reminders or shorten or cancel credit periods to
ensure the overall credit risk of the Group is limited to a controllable extent.
As at the balance sheet date the Group had no significant collateral or other credit enhancements
held as a result of the debtor's mortgage.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s
finance department in its headquarters. The Group’s finance department at its headquarters
monitors rolling forecasts of the Group's short-term and long-term liquidity requirements to ensure it
has sufficient cash and securities that are readily convertible to cash to meet operational needs
while maintaining sufficient headroom on its undrawn committed borrowing facilities from major
financial institutions so that the Group does not breach borrowing limits or covenants on any of its
borrowing facilities to meet the short-term and long-term liquidity requirements.The financial liabilities of the Group at the balance sheet date are analysed by their maturity dates
below at their undiscounted contractual cash flows:
31 December 2018
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Carrying
amount on
balance sheet
Short-term borrowings 7772410040 - - - 7772410040 7526000000
Notes and accounts
payables 3137761522 - - - 3137761522 3137761522
Other payables 4152518495 - - - 4152518495 4152518495
Other current liabilities 1109288333 - - - 1109288333 1107904110
Long-term borrowings
and long-term
borrowings due
within one year 2633767677 3625442537 5606077351 14610174917 26475462482 20548090036
Debentures payable
and debentures
payable due within
one year 758015172 76621672 833520000 - 1668156844 1536994298
Long-term payables
and long-term
payables due within
one year (excluding
payables for specific
projects) 431974174 412579372 1515835861 636898250 2995037657 2556113382
19995735413 4114643581 7953183212 15247073167 47310635373 40565381843
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial risk (Cont’d)
(3) Liquidity risk (Cont’d)
31 December 2017
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Carrying
amount on
balance sheet
Short-term
borrowings 9539414580 - - - 9539414580 9270000000
Notes and
accounts
payables 2516639061 - - - 2516639061 2516639061
Other payables 4016769705 - - - 4016769705 4016769705
Long-term
borrowings and
long-term
borrowings due
within one year 2336337873 2698035335 7228027270 15219780032 27482180510 20911221812
Debentures
payable and
debentures
payable due
within one year 1234393699 21700000 743400000 - 1999493699 1896103687
Long-term
payables and
long-term
payables due
within one year
(excluding
payables for
specific projects) 406242457 376429119 752323464 457267963 1992263003 1917516182
20049797375 3096164454 8723750734 15677047995 47546760558 40528250447
The Group’s available financing credit lines under agreement with the financial institutions as at
balance sheet date are as follows:
31 December 2018 31 December 2017
Available financing credit lines under
agreement with the financing
institutions 20635056100 17931865295
13 Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the fair value
hierarchy of the lowest level input that is significant to the entire fair value measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability either directly or indirectly.Level 3: Unobservable inputs for the asset or liability.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Fair value estimates (Cont’d)
(1) Assets measured at fair value on a recurring basis
As at 31 December 2018 the assets measured at fair value on a recurring basis by the above three
levels are analysed below:
Level 1 Level 2 Level 3 Total
Available-for-sale financial
assets -
Available-for-sale equity
instruments 340765380 - 799040951 1139806331
As at 31 December 2017 the assets measured at fair value on a recurring basis by the above three
levels are analysed below:
Level 1 Level 2 Level 3 Total
Available-for-sale financial
assets -
Available-for-sale equity
instruments 408992985 - - 408992985
The Group takes the date on which events causing the transfers between the levels take place as
the timing specific for recognising the transfers. There is no transfer between Level 1 and Level 2
for the current year.The fair value of financial instruments traded in an active market is determined at the quoted market
price; and the fair value of those not traded in an active market is determined by the Group using
valuation technique. The valuation models used mainly comprise discounted cash flow model and
market comparable corporate model. The inputs of the valuation technique mainly include risk-free
interest rate benchmark rate exchange rate credit spread liquidity premium EBITDA multiplier
liquidity discount etc.
(2) Assets and liabilities not measured at fair value but for which the fair value is disclosed
Financial assets and liabilities measured at amortised cost mainly include receivables
available-for-sale financial assets short-term borrowings payables long-term borrowings
debentures payable and long-term payables.The carrying amount of the financial assets and liabilities not measured at fair value is a reasonable
approximation of their fair value.
14 Capital management
The Group’s capital management policies aim to safeguard the Group’s ability to continue as a
going concern in order to provide returns for shareholders and benefits for other stakeholders and
to maintain an optimal capital structure to reduce the cost of capital.The Group's total capital is calculated as ‘owners’ equity’ as shown in the consolidated balance
sheet. The Group is not subject to external mandatory capital requirements and monitors capital on
the basis of gearing ratio.
As at 31 December 2018 and 31 December 2017 the Group’s gearing ratios were as follows:
31 December 2018 31 December 2017
Gearing ratio 57.02% 58.17%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements
(1) Notes and accounts receivables
31 December 2018 31 December 2017
Accounts receivable (a) 264537475 195462150
(a) Accounts receivable
31 December 2018 31 December 2017
Accounts receivable 264564281 195462150
Less: Provision for bad debts (26806) -
264537475 195462150
(i) The ageing of the accounts receivable is analysed as follows:
31 December 2018 31 December 2017
Within 1 year 264564281 195462150
As at 31 December 2018 and 31 December 2017 the Company had no accounts receivable
overdue but unimpaired.(ii) Accounts receivable are analysed by categories as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount
% of
total
balance Amount
Percentage
(%) Amount
% of
total
balance Amount
Percentage
(%)
With amounts that are
individually significant
and that the related
provision for bad debts
is provided on the
individual basis - - - - - - - -
Provision for bad debts on
the grouping basis
Low-risk grouping 261883617 98.99% - - 195462150 100.00% - -
Ageing analysis
grouping 2680664 1.01% (26806) 1.00% - - - -
With amounts that are not
individually significant
but that the related
provision for bad debts
is provided on the
individual basis - - - - - - - -
264564281
100.00
% (26806) 0.01% 195462150 100.00% - -
(iii) As at 31 December 2018 the five largest accounts receivable by debtors were summarised and
analysed as follows:
Ending balance
Provision for bad
debts Percentage
Total balance of the five largest accounts
receivable 264537475 (26806) 0.01%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables
31 December 2018 31 December 2017
Entrusted loans receivable 335000000 -
Supplementary medical insurance fund
receivable 22113731 -
Receivables from sales of by-products 6954775 22394109
Petty cash receivable 2607574 901951
Interest receivable 1121522 1698504
Dividends receivable 447956 17536791
Others 7166030 4688244
Less: Provision for bad debts (115360) -
375296228 47219599
(a) The ageing of other receivables is analysed below:
31 December 2018 31 December 2017
Within 1 year 373852955 46515768
1 to 2 years 960869 18403
2 to 3 years - 35176
Over 3 years 597764 650252
375411588 47219599
As at 31 December of 2018 and 31 December 2017 the Company were clear of significant overdue
amount of other receivables with no provision for impairment.(b) The ageing of other receivables is analysed below:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount
% of total
balance Amount
Percent
age Amount
% of
total
balance Amount
Percent
age
With amounts that are
individually
significant and that
the related
provision for bad
debts is provided
on the individual
basis - - - - - - - -
Provision for bad
debts on the
grouping basis
Low-risk
grouping 370766778 98.76% - - 47219599 100.00% - -
Ageing analysis
grouping 4644810 1.24% (115360) 2.48% - - - -
With amounts that are
not individually
significant but that
the related
provision for bad
debts is provided
on the individual
basis - - - - - - - -
375411588 100.00% (115360) 0.03% 47219599 100.00% - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont'd)
(c) As at 31 December 2018 the five largest other receivables by debtors were analysed as follows:
Nature Balance Ageing
% of total
other
receivables
Provision for
bad debts
Bohe Coal
Entrusted loans
receivable 300000000
Within 1
year 79.91% -
Lincang Energy
Entrusted loans
receivable 35000000
Within 1
year 9.32% -
Taikang Pension
Supplementary
medical
insurance fund
receivable 22113731
Within 1
year 5.89% -
Guangdong Yudean
Environmental
Protection Co. Ltd.Receivables
from sales of
by-products 6954775
Within 1
year 1.85% -
GEGC
Service fee
receivable 2070690
Within 1
year 0.55% -
366139196 97.52% -
(3) Long-term equity investments
31 December 2018 31 December 2017
Subsidiaries (a) 19610774833 18770291604
Joint ventures (b) 602584896 605678402
Associates (c) 5763295357 5132577336
Less: Long-term equity investments - provision
for impairment of subsidiary (a) (1251824079) (1138134640)
Long-term equity investments - provision
for impairment of joint venture (c) (25010686)
24699820321 23370412702
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(a) Subsidiaries
Movements for the current year
31 December
2017
Increase in
investment
Decrease in
investment
Provision for
impairment Others 31 December 2018
Ending balance
of provision for
impairment loss
Declared cash
dividends during
the year
Zhanjiang Electric 2185334400 - - - - 2185334400 - 138852690
Yuejia Electric 176095071 - (176095071) - - - (455584267) -
Maoming Zhenneng 687458978 - - - - 687458978 - -
Jinghai Power 1930395668 - - - - 1930395668 - 136381289
Zhanjiang Wind
Power 242277000 - - - - 242277000 - -
Zhongyue Energy 963000000 - - - - 963000000 (187248115) -
Humen Electric 3192416 - - - - 3192416 (86807584) -
Anxin Inspection 20000000 - - - - 20000000 - 447956
Bohe Coal 2229000000 - - - - 2229000000 - -
Pinghai Power 720311347 - - - - 720311347 - 189854558
Red Bay Power 2220023386 - - - - 2220023386 - 139383465
Huizhou Natural Gas 1072506646 103578300 - - - 1176084946 - 125718705
Guangqian Electric 1353153223 - - - - 1353153223 - 217306670
Yuejiang Power 745200000 - - - - 745200000 (408494674) -
Huadu Natural Gas 186550000 - - - - 186550000 - -
Dabu Electric 1000000000 - - - - 1000000000 - -
Sub-total 15734498135 103578300 (176095071) - - 15661981364 (1138134640) 947945333
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(a) Subsidiaries (Cont'd)
Movements for the current year
31 December 2017
Increase in
investment
Decrease in
investment
Provision for
impairment
Others
31 December 2018
Ending balance of
provision for
impairment loss
Declared cash
dividends during
the year
Guangdong Wind
Power 827419390 365000000 - - - 1192419390 - -
Leizhou Wind Power 80800000 - - - - 80800000 - -
Qujie Wind Power 231750000 548000000 - - - 779750000 - -
Power Sales 230000000 - - - - 230000000 - 5309037
Lincang Energy 427689439 - - (113689439) - 314000000 (113689439) -
Yongan Natural Gas 90000000 - - - - 90000000 - -
Tongdao Company 10000000 - - - - 10000000 - -
Sub-total 1897658829 913000000 - (113689439) - 2696969390 (113689439) 5309037
Total 17632156964 1016578300 (176095071) (113689439) - 18358950754 (1251824079) 953254370
Relevant information of the Company’s subsidiaries is set out in Note 6.Lincang Energy has suffered from continued operating losses. Management of the Company made provision for impairment of long-term equity investment
amounting to RMB 113689439 after assessing the recoverable amount of this long-term equity investment on the basis of equity shares in Lincang Energy.Zhongyue Energy and Yuejiang Power have suffered from continued operating losses. As at 31 December 2018 management of the Company respectively
made provision for impairment of long-term equity investment amounting to RMB 187248115 and RMB 408494674 (31 December 2017: RMB
187248115 and RMB 408494674) after assessing the recoverable amounts of this long-term equity investment.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(a) Subsidiaries (Cont'd)
In anticipation of the four generator units of Yuejia Electric to be shut down successively around 2016 the Company’s management has provided for an
impairment amounting to RMB 455584267 on the difference between the Company’s entitlement in Yuejia Electric’s equity and its investment costs in
Yuejia Electric in 2009 2011 and 2013 after assessing the recoverable amounts of this long-term equity investment. In 2018 the Company received a
capital of RMB 187920000 withdrew by Yuejia Electric. The difference between the withdrawn amount and the carrying amount of long-term equity
investment amounting to RMB 11824929 was recorded in investment income. After the completion of capital withdrawal the carrying amount of the
Company’s long-term equity investment in Yuejia Electric has been adjusted to RMB 0.
The 2×1000MW Ultra Supercritical Unit Engineering Project by the Company’s holding subsidiary Humen Electric has been implemented with pre-stage
feasibility analysis design three supplies and one levelling and other preparations. However influenced by national policies upon the industry the project
has stagnated for years and signs of entire assets impairment have occurred. After the impairment test provision for impairment loss of RMB 39107109
and RMB 87911775 has been made respectively in 2016 and 2017 for the project. After evaluating the recoverable amount of the long-term equity
investment the Company’s management made the provision for impairment of Humen Electric amounting to RMB 86807584 according to the Company’s
equity proportion. As at 31 December 2018 the balance of provision for impairment of long-term investments of Humen Electric was RMB 86807584 (31
December 2017: RMB 86807584).
(b) Joint ventures
Movements for the current year
31 December
2017
Increase
in
investment
Decrease
in
investment
Share of net
profit/(loss)
under equity
method
Share of other
comprehensive
income
Other
changes in
equity
Cash dividends
or profits
declared
Provision
for
impairment
loss Others
31 December
2018
Ending balance
of provision for
impairment loss
Industry fuel 605678402 - - 72400480 - - (75493986) - - 602584896 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(c) Associates
Movements for the current year
31 December
2017
Increase in
investment
Transfer from
available-for-
sale financial
assets
Share of net
profit/(loss)
under equity
method
Share of other
comprehensive
income
Other
changes in
equity
Cash
dividends or
profits
declared
Provision
for
impairment
Transfer from
provision for
impairment of
available-for-sale
financial assets
31 December
2018
Ending
balance of
provision for
impairment
loss
Shanxi Yudean Energy 1216441246 - -
227748560 - - (4000000) - - 1440189806 -
Yudean Finance 700701205 - - 85475612 - - (57221066) - - 728955751 -
Taishan Electric 1961475609 - - 129315387 - -
(121582000) - - 1969208996 -
Yudean Shipping 941757936 - - 1822952 - - (8469538) - - 935111350 -
Western Investment 153696713 - - (18044364) - - - - - 135652349 -
Jiangkeng Hydropower 5673426 - - 874094 - - (852810) - - 5694710 -
Yangshan Zhongxinkeng
Electric 7509371 - - 1000767 - - (701312) - - 7808826 -
Yudean Property
Self-Insurance 145321830 98000000 - 14704347 - - - - - 258026177 -
Weixin Yuntou - - 313928778 (31281386) - - - - (25010686) 257636706 (25010686)
5132577336 98000000 313928778 411615969 - -
(192826726) - (25010686) 5738284671 (25010686)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales
2018 2017
Revenues from main operations 2235681776 2069432698
Revenue from other operations 52217824 48067193
2287899600 2117499891
2018 2017
Cost of sales from main operations 2132196128 2014615189
Cost of sales from other operations 1736758 4520324
2133932886 2019135513
(a) Revenue and cost of sale from main operations
2018 2017
Revenues from
main operations
Cost of sales
from main
operations
Revenues from
main operations
Cost of sales
from main
operations
Revenue from sales of
electricity 2211867034 2116516443 2055641237 2004239952
Revenue from steam 23814742 15679685 13791461 10375237
2235681776 2132196128 2069432698 2014615189
(b) Revenue and cost of sales from other operations
2018 2017
Revenue from
other operations
Cost of sales
from other
operations
Revenue from
other operations
Cost of sales
from other
operations
Sales of materials 32148949 498400 25927045 1555514
Rental income 7189032 274737 4852933 21077
Others 12879843 963621 17287215 2943733
52217824 1736758 48067193 4520324
(5) Asset impairment losses
2018 2017
Impairment losses of long-term equity
investments 113689439 648567425
Impairment losses of fixed assets 40395369 -
Bad debts losses 142166 -
Impairment losses of financial assets held for
sale - 25010686
154226974 673578111
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(6) Investment income
2018 2017
Income from long-term equity investments
under cost method 965079299 1030406322
Gains from long-term equity investments
under equity method 484016449 430233194
Investment income from available-for-sale
financial assets 49140042 52319444
Interest income from entrusted loans 18545516 17688957
Others 363563 359464
1517144869 1531007381
There is no significant restriction for remittance of return on investment for the Group.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss
2018 2017
(Gains)/Losses on disposal of non-current assets (1572097) 4720404
Government grants recognised in profit or loss for the
current period (43530965) (41344595)
Administrative penalty as well as tax and overdue fine
paid after tax inspection 12679505 7274913
Non-operating income other than aforesaid items (62976212) (6502013)
(95399769) (35851291)
Effect of income tax 25191469 10104459
Effect on minority interests after taxation 7809260 1020520
(62399040) (24726312)
Basis for preparation of statement of non-recurring profit or loss
Pursuant to the Explanatory Announcement for Information Disclosure of Companies Offering
Securities to the Public No.1 - Non-recurring Profit or Loss (2008) issued by China Securities
Regulatory Commission non-recurring profit or loss refers to profit or loss arising from transactions
and events that are not directly related to the company’s normal course of business or that are
relevant to ordinary activities but are extraordinary and not expected to recur frequently that would
have an influence on users of financial statements making economic decisions on the financial
performance and profitability of an enterprise.
2 Return on net assets and earnings per share
Weighted average
return on net asset (%)
Earnings per share
Basic earnings per
share
Diluted earnings per
share
2018 2017 2018 2017 2018 2017
Net profit attributable
to ordinary
shareholders of the
Company 2.02% 3.16% 0.09 0.14 0.09 0.14
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Net profit attributable
to ordinary
shareholders of the
Company after
deducting
non-recurring profit
or losses 1.75% 3.06% 0.08 0.14 0.08 0.14
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Differences of accounting data under Chinese and foreign accounting policies
Differences in net profit and net assets attributable to the shareholdings of the company included
in the consolidated financial statement prepared under the International Financial Reporting
Standards (IFRSs) and the China Accounting Standards (CASs) are as follows:
Net profit Net assets
2018 2017 2018 2017
Under the CASs 474461997 743180431 24227302288 23695190653
Items and amounts adjusted
under the IFRSs
Difference in recognition of
goodwill on business
combination under
common control (a) - - 64623000 64623000
Difference in recognition of
land use value upon
business combination (a) (630000) (630000) 17600000 18230000
Impact on minority interests
(b) 54120 54120 4810219 4756099
Under the IFRSs 473886117 742604551 24314335507 23782799752
(a) Difference in recognition of goodwill on business combination under common control and
difference in recognition of land use value upon business combination
Under the requirement of new CASs goodwill arising from business combination under common
control should not be recognised and capital reserve should be adjusted accordingly; whereas
under the requirement of IFRSs goodwill arising from business combination under common
control should be recognised and it represents the excess on acquisition costs over the share of
identifiable fair value of net asset from the acquiree on business combination. All assets obtained
from the acquiree on business combination should be measured on their fair values. The
measurement of the two standards will continue to show a difference.(b) Impact on minority shareholders
The above mentioned difference in recognition of land use value upon business combination
exists in the Company and some holding subsidiaries thus causing effect against minority
interests.XII. Documents for reference
1.Financial statements bearing the seal and signature of legal representative financial controller and the person in
charge of the accounting organ;
2.Original audit report seal with accounting firms and signature and seal from CPA;
3.All original copies of official documents and notices which were disclosed in Securities Times China Securities
and Hong Kong Commercial Daily (Both English and Chinese version);
4. Chinese Version of the annual report
The documents mentioned above are kept in office and are ready for reference at any time (except public holidays
Saturday and Sunday).The Board of Directors of Guangdong Electric Power Development Co. Ltd.
Chairman of the Board: Wang Jin
April 12 2019
沪公网安备31011802005267号
