Guangdong Electric Power Development Co. Ltd.2019 Annual Report
April 2020
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:
The name of director who did not
attend the meeting in person
Positions Reason
The name of director who was
authorized
Chen Ze Director Due to business Wang Jin
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 capital the Company would distribute cash dividend to all t
he shareholders at the rate of CNY 1.2 for every 10 shares (with tax inclusive) ， with 0 bonus shares（including tax） and not converting capital reserve into share capital.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 convertible corporate bonds
IX. Information about Directors Supervisors and Senior Executives
X. Administrative structure
XI. Corporate Bond
XII. Financial Report
XIII. Documents available for inspection
I. Important Notice Table of Contents and Definitions.............................................................................................................................1
II. Basic Information of the Company....................................................................................................................................................... 6
IV. Management’s Discussion and Analysis............................................................................................................................................ 14
VII. Situation of the Preferred Shares......................................................................................................................................................72
VIII Information about convertible corporate bonds...............................................................................................................................73
IX. Information about Directors Supervisors and Senior Executives.....................................................................................................74
X. Administrative structure......................................................................................................................................................................89
XII.. Financial Report............................................................................................................................................................................ 102
XIII. Documents for reference...............................................................................................................................................................273
Terms to be defined
Refers
to
Definition
Guangdong Energy Group
Refers
to
Guangdong Energy Group Co. Ltd.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.
Binhaiwan Energy Company
Refers
to
Guangdong Yudean Binhaiwan 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.Yudean 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.Guangdong Energy Finance Company
Refers
to
Guangdong Energy Group Finance Co. Ltd. (formerly "Guangdong
Yudean Finance Co. Ltd." renamed on March 10 2020)
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 000539200539
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 广东电力发展股份有限公司
Abbreviation of Registered
Company Name in Chinese(If
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 i n 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 Li Yanhua
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□Applicable √Not Applicable
The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period
□Applicable √Not Applicable
Ⅵ.Summary of Accounting data and Financial index
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No
2019 2018
Changed over last
year（％）
2017
Operating income（RMB） 29360155150 27408514178 7.12% 26643792057
Net profit attributable to the
shareholders of the listed company
（RMB）
1146767033 474461997 141.70% 743180431
Net profit after deducting of
non-recurring gain/loss attributable to
the shareholders of listed company
（RMB）
1069396196 412062957 159.52% 718454119
Cash flow generated by business
operation net（RMB）
8272683112 5999936356 37.88% 3676034503
Basic earning per share(RMB/Share) 0.22 0.09 144.44% 0.14
Diluted gains per share(RMB/Share) 0.22 0.09 144.44% 0.14
Net asset earning ratio（%） 4.77% 2.02% 2.75% 3.16%
End of 2019
End of
2018
Changed over last
year（％）
End of 2017
Gross assets（RMB） 75472027123 73329662306 2.92% 71007415323
Net assets attributable to shareholders
of the listed company（RMB）
26178241077 24227302288 8.05% 23695190653
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 1146767033 474461997 26178241077 24227302288
Items and amount adjusted according to IAS
The difference arising from
recognition of goodwill
after merger of enterprises
under the same control
-25984223 0 38638777 64623000
Difference arising from
recognition of land use
value after enterprise
merger
-630000 -630000 16970000 17600000
Influence on minority
interests
54120 54120 4864339 4810219
According to IAS 1120206930 473886117 26238714193 24314335507
2. 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
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
goodwill 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 5589715802 7284465448 8646351018 7839622882
Net profit attributable to the
shareholders of the listed
company
109518462 472050921 757309917 -192112267
Net profit after deducting of
non-recurring gain/loss
attributable to the shareholders
of listed company
109805200 478783717 719277830 -238470551
Net Cash flow generated by
business operation
1805095658 1998346143 2970134176 1499107135
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 (2019) Amount (2018) Amount (2017) Notes
Non-current asset disposal
gain/loss(including the write-off
part for which assets impairment
provision is made)
20503424 1572097 -4720404
It was mainly Yongan
Thermoelectric that received 20.51
million yuan in compensation for
land use right recovery.Government subsidy recognized
in current gain and
loss(excluding those closely
related to the Company’s
business and granted under the
state’s policies)
33284069 43530965 41344595
Various government subsidies
received by branch companies and
subsidiaries.Switch back of provision for
depreciation of account
receivable which was singly
taken depreciation test.
48647647
The creditor's rights investment of
48.64 million yuan that has been
accrued for impairment losses for
Guangdong International Trust and
Investment Company was recovered.
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;
-4449214 -12679505
Net amount of non-operating
income and expense except the
aforesaid items
5674806 62976212 6502013
Other non-recurring Gains/loss
items
-7274913
Less: .Amount of influence of
income tax
26385663 25191469 10104459
Less: Amount of influence of
minority interests
-95768 7809260 1020520
Total 77370837 62399040 24726312 --
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
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 thepeople using it for electricity and benefiting the public” and adheres to the business policy of “Centering on themain business of electricity 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 312019 the controllable installed capacity is 21.005 million kilowatts where the controllable installed
capacity of coal-burning power generation LNG generation and renewable energy generation like wind power
and hydropower is 16.716 million kilowatts 3.72 million kilowatts and 569000 kilowatts respectively. In
addition the company is entrusted with managing the installed capacity of 10.223 million kilowatts .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 71.175 billion kilowatt-hours
an increase of 0.27% YOY; average price stated in the consolidated statements is 463.49 Yuan/ thousands
kilowatt-hours(tax included the same below ) YOY growth of 20.52 Yuan/ thousands kilowatt-hours; the total
operating income was RMB 29360.1552 million an increase of RMB 1951.641 million or an increase of 7.12%
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 17604.8222 million yuan which accounted for
71.91% of the main business costs; Affected by the fall in electricity and coal prices a decrease of 333.6828
million yuan or a decrease of 1.86% over the same period of last year.
During the reporting period the company's gross profit on power generation and net profit attributable to its
parent increased significantly year on year due to the combined effects of increased power consumption on grid
the decline in coal prices the narrowing of trading spreads in the electricity market tax and fee reduction policy
dividends and effective cost control the Company achieved a net profit of 1146.767 million yuan attributable to
the parent company for the whole year a YOY increase of 141.70%.Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III.Analysis On core Competitiveness
1. The largest listed company of power in Guangdong
he Company's main power generation assets are located in Guangdong Province with a total asset size of more
than 75 billion. It is the largest listed company of power in Guangdong Province. By the end of 2019 The
company's controllable installed capacity and entrusted managed installed capacity totaled 31.228 million
kilowatts accounting for about 25% of the total installed capacity of Guangdong Province.
2. Strong background and resource advantages
As a provincial key energy enterprise Guangdong Energy Group the controlling shareholder of the company has
been actively supporting the development and expansion of the company by taking advantage of its resources
technology and asset scale. As the main force of Guangdong's energy resources the company has always been
subordinated to serving the overall situation of the reform and development of Guangdong Province and
Guangdong Energy Group. It has deeply cultivated the main power industry fully played the value discovery
function and resource allocation function of the capital market and assisted the reform and development of
Guangdong Province's energy resources.
3. Comprehensive advantages of main business
The company's 13th Five-Year Plan has determined the overall strategy of taking power generation as its core
business optimizing the development of coal and electricity steadily developing gas and electricity vigorously
developing clean energy sources such as wind power and hydropower continuously optimizing the power supply
structure and insisting on high efficiency cleanness and low carbon. The company has abundant project reserves
and broad development prospects with about 10000000 kilowatts of total installed capacity of thermal power
generation onshore wind power offshore wind power and other power projects currently under construction and
in the early stage clear main business reasonable structure prominent industrial position and market share and
strong comprehensive strength and broad development prospects.
4. Competitive advantage in electricity market
The company's generator set has high parameters large capacity high operation efficiency low coal consumption
stable operation superior environmental protection performance and strong market competitive advantage. In
2019 the company completed a total of 46.302 billion kilowatt-hours of electricity in the market and the scale of
electricity sales continued to rank first in the province with electricity sales prices superior to the province's
average. The company gives full play to its three advantages of scale brand and service. With its marketing
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
service network all over the province and its technical accumulation and comprehensive resources in the power
industry the company provides auxiliary value-added services such as peak regulation frequency modulation and
backup for the power grid and provides high-quality value-added services such as comprehensive energy saving
and power consumption consultation for users thus realizing the transformation from a power generation
enterprise to an energy comprehensive service enterprise.
5. Advantage of financial resources
By the end of 2019 the company's total assets were 75.472 billion yuan net assets were 34.19 billion yuan net
assets attributable to the parent were 26.178 billion yuan and net profits attributable to the parent were 1.147
billion yuan; Net cash inflow from operating activities was 8.273 billion yuan net cash outflow from investment
activities was 4.786 billion yuan and net cash outflow from financing activities was 3.977 billion yuan. The
company has large assets stable operating results abundant cash flow and strong financial resources.
6. Regional development advantages
As the main energy source in Guangdong Province the company shoulders the important task of helping
Guangdong Province to build a clean low-carbon safe and efficient modern energy system. The company will
actively integrate into the construction of Guangdong-Hong Kong-Macao Greater Bay Area Shenzhen's advanced
demonstration zone and the development of Guangdong's "one core one belt and one area". It will steadily push
forward the construction of key energy projects and the development of new energy resources in the province and
actively seek to expand into regions with better resource conditions and higher power demand.IV. Management’s Discussion and Analysis
Ⅰ.General
In 2019 the electricity consumption of the whole society in Guangdong Province was 669.2 billion kilowatt-hours
with a year-on-year increase of 5.8% and a growth rate dropped somewhat year on year. Influenced by such
factors as the above planned increase in Western Power the year-on-year increase in nuclear power installations
and the increase in electricity from renewable energy sources such as hydropower in the province the online
electricity consumption of Guangdong's unified thermal power units decreased by 2% year on year. In 2019
Guangdong received 202.1 billion kilowatt-hours of electricity from the West with a year-on-year increase of
5.1% and extra delivery than the plan by 31.6 billion kilowatt-hours; In terms of installed capacity a total of 5.824
million kilowatts of nuclear and thermal power units were newly put into operation outside the province's system
with the newly added capacity accounting for 4.60% of the total. Based on the above factors the company's
coal-fired power generation utilization hours in the province were 4030 hours and the coal-fired power
consumption was 58.679 billion kilowatt-hours with a year-on-year decrease of 5.71% while the gas-fired power
consumption was 11.378 billion kilowatt-hours with a year-on-year increase of 48% of which Huizhou LNG
Phase II units contributed 4.466 billion kilowatt-hours.
In 2019 the scale of market-oriented transactions in Guangdong Province continued to expand with a total of
214.94 billion kilowatt-hours of transactions and a market power of 195.86 billion kilowatt-hours up 26% year on
year. The primary market (annual bilateral negotiation annual centralized competition and monthly centralized
competition) had a total transaction volume of 195.03 billion kilowatt-hours with a year-on-year of 24.1% and an
average transaction volume difference of -40.2% per kilowatt hour; In the secondary market (transfer of power
generation contracts) the total amount of electricity sold was 19.91 billion kilowatt-hours with an average
transaction price of 0.3255 yuan/ kilowatt-hours. The total amount of electricity traded in the company's market
was 46.302 billion kilowatt-hours accounting for 65.05% of the company's online electricity consumption with a
year-on-year increase of 10.922 billion kilowatt-hours.
In 2019 the company's market-oriented trading scale expanded and the trading spread narrowed year on year. The
average price of electricity sold in the consolidated statement was 463.49 yuan/thousands kilowatt-hours(inclusive
of tax the same below) with a year-on-year increase of 20.82 yuan/thousands kilowatt-hours year on year or
4.70%; Meanwhile the profits of the company's power generation business increased significantly year on year
due to the combined effects of the fall in electricity and coal prices the dividend from the implementation of the
tax reduction and fee reduction policy and the effective control of various costs and expenses by the company.Under the situation that the electricity business of coal-fired units continues to be under pressure the company
continuously strengthens the awareness of financial control makes full use of financial management methods
improves the level of capital management ensures the company's capital demand and reduces the cost of capital
use. During the reporting period four phases of ultra-short financing were successfully issued saving the
financing cost by 26.8422 million yuan compared with the benchmark loan interest rate for the same period.
By the end of 2019 the company's consolidated statement had total assets of 75.472 billion yuan with a
year-on-year increase of 2.92%; The equity attributable to the shareholders of the parent company was 26.178
billion yuan with a year-on-year increase of 8.05%. The company's consolidated operating income reached 29.36
billion yuan with a year-on-year increase of 7.12%; Net profit attributable to shareholders of the parent company
was 1.147 billion yuan with a year-on-year increase of 141.70%; Earnings per share were 0.22 yuan (0.09 yuan in
the same period last year). According to the consolidated statement the company's liabilities totaled 41.282 billion
yuan with an asset-liability ratio of 54.70%.
In 2019 the company will continue 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. Unit #6 of Huizhou natural gas
power generation project under construction is put into commercial operation increasing the controllable installed
capacity by 460000 kilowatts. By the end of 2019 the company has a controllable installed capacity of 21.005
million kilowatts with a year-on-year increase of 0.4% of which clean energy account for 20.4% from 18% at the
end of 2018.
In 2019 the company will resolutely implement the requirements of structural reform on the supply of the power
industry adhere to a clean low-carbon safe and efficient energy development strategy firmly grasp the
development opportunities of Guangdong-Hong Kong-Macao Greater Bay Area the construction of Shenzhen's
advanced demonstration zone and the provincial government's proposal to build a "one core one belt and one
area" and continuously optimize the power supply structure and asset structure. Huizhou Natural Gas Phase II
Unit#6 was put into operation for power generation Zhanjiang Wailuo offshore wind turbines were connected to
the grid one after another major breakthroughs were made in Bohe project construction and project approval
Dongguan Ningzhou gas and electricity project was accelerated and the power supply structure was continuously
optimized.
In 2019 the company implemented the Guidelines for the Governance of Listed Companies and the related
requirement of the CSRC on improving the quality of listed companies earnestly implemented prudent
management abode by laws and regulations emphasize its core business respected investors continuously
improved the level of corporate governance and enhanced the development quality of listed companies. The board
of directors organized 3 on-site meetings and 6 communication meetings and completed the examination and
approval of 53 proposals by the board of directors. The topics covered include regular reports internal control
evaluation comprehensive risk management profit distribution plan major investment and financing major
related transactions and important personnel appointment and removal. All proposals were adopted and
effectively implemented. The board of directors also convened five shareholders' meetings and all 19 proposals
submitted to the shareholders' meeting for deliberation were adopted and effectively implemented. The company
successfully completed the preparation and disclosure of periodic reports and temporary announcements and
issued 102 announcements throughout the year. The information disclosure has been evaluated as "A" by
Shenzhen Stock Exchange for six 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
2019 2018 Increase /decrease
Amount Proportion Amount Proportion
Total operating
revenue
29360155150 100% 27408514178 100% 7.12%
On Industry
Electric power
Steam sales and
labor income
29018275346 98.84% 27125955662 98.97% 6.98%
Other 341879804 1.16% 282558516 1.03% 20.99%
On products
Sales Electric
Power
28811365634 98.13% 26949774763 98.33% 6.91%
Labor income 69773643 0.24% 50148277 0.18% 39.13%
Steam income 137136069 0.47% 126032622 0.46% 8.81%
Comprehensive
utilization of fly
ash
270692961 0.92% 240230510 0.88% 12.68%
Sales material
income
2246472 0.01% 1324637 0 % 69.59%
Lease revenue 25092388 0.08% 20343421 0.07% 23.34%
Other 43847983 0.15% 20659948 0.08% 112.24%
Area
Guangdong 29299674022 99.79% 27333587477 99.73% 7.19%
Yunnan 60481128 0.21% 74926701 0.27% -19.28%
(2)Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
In RMB
Turnover Operation cost
Gross profit
rate(%)
Increase/decrea
se of revenue in
the same period
of the previous
year(%)
Increase/decrea
se of business
cost over the
same period of
previous year
(%)
Increase/decrea
se of gross
profit rate over
the same period
of the previous
year (%)
On Industry
Electric power
Steam sales and
labor income
29018275346 24468499397 15.68% 6.98% 0.96% 5.03%
On Products
Sales Electric
Power
28811365634 24303147059 15.65% 6.91% 0.85% 5.75%
Area
Guangdong 29299674022 24420530698 16.65% 7.19% 0.96% 5.14%
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 2019 2018 Changes
Electric power
thermal production
and supply
Sales volume Billion kwh 71.175 70.984 0.27%
Production Billion kwh 75.283 75.123 0.21%
Explanation for a year-on –year change of over 30%
□Applicable √Not applicable
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
√ Applicable □Not applicable
In the reporting period China Southern Power Grid was our No.1 client Its sales of 28.811 billion yuan taking up
approximately 98.13% 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
2019 2018
Increase/
DecreaseAmount
Proportion in the
operating costs
(%)
Amount
Proportion in
the operating
costs (%)
Electric power
thermal production
and supply
Fuel cost 17604822208 71.91% 17938504997 73.98% -1.86%
Electric power
thermal production
and supply
Depreciation
expense
3676925686 15.02% 3336322747 13.76% 10.21%
Electric power
thermal production
and supply
Labor cost 1445633763 5.91% 1386084497 5.72% 4.30%
Electric power
thermal production
and supply
Other 1753322216 7.16% 1585804339 6.54% 10.56%
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 71.91% of total cost.Mainly affected by the fall of electricity and coal prices the fuel cost decreased slightly year on year. Due to
accelerated depreciation caused by the decommissioning of Sha A unit and the production of Huizhou Natural Gas
Phase II Qujie Wind Power and Leizhou Wind Power the depreciation expenses increased by 10.21% year on
year.(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
Binhaiwan Energy Co. Ltd.
Dongguan
Guangdong
Humen Town Dongguan
City Guangdong
Electric
Power
30000000 100 % 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) 29171671982
Proportion of sales to top 5 customers in the annual sales(%) 99.36%
Proportion of the sales volume to the top five customers in the
total sales to the related parties in the year
0.86%
Information of the Company’s top 5 customers
No Name Amount（RMB） Proportion
1 GPGC 28811365634 98.13%
2 Guangdong Energy Group Co. Ltd. 253674224 0.86%
3 Huizhou Huiling Chemical Co. Ltd. 47037233 0.16%
4 Huizhou Yuxin Chemical Co. Ltd. 35436408 0.12%
5 Dongguan Dejin Energy Technology Co. Ltd. 24158483 0.08%
Total -- 29171671982 99.36%
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） 221506980001
Percentage of total purchase of top 5 suppliers In total annual
purchase(%)
90.05%
Proportion of purchase amount from the top 5 suppliers in the
total purchase amount from the related parties in the year
62.69%
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
1 Guangdong Energy Group Co. Ltd. 15419926669 62.69%
2
China Energy Engineering Group Guangdong
Electric Power Design Institute Co. Ltd.
5054052559 20.55%
3 Guangdong Dapeng ING Co. Ltd 806602480 3.28%
4 GPEC 648040965 2.63%
5 Hunan Industrial Equipment Installation Co. Ltd. 222075328 0.90%
Total -- 22150698001 90.05%
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
2019 2018
Increase/
Decrease(%)
Notes
Sale expenses
43788762 25383861 72.51%
Mainly due to the company's added full-time
sales staff and increased business costs caused
by the deepening of electricity market.
Administration
expenses 874640868 688349938 27.06%
This is mainly due to the total cost of 151
million yuan for the production preparation of
Bohe Power Plant and the increase in personnel.
Financial expenses 1230315841 1350485251 -8.90%
R & Development
expenses
9703602 5043776 92.39%
It is mainly due to the increase in R&D
investment of subordinate units of the company.
4.R& D Expenses
√ Applicable □Not applicable
No
Project company
name
Project name Purpose Project progress Target and influence
1
Zhanjiang
Zhongyue
Energy Co. Ltd.
Plant AGC load
optimization control
system
The plant-level AGC system can
enhance the autonomy initiative and
coordination of the power plant
monitor the safety economic operation
and restriction conditions of the power
plant in real time implement
prevention and correction control and
realize maximum power output.The project has
not yet been
completed and is
under
implementation.
After the optimal load
distribution is
implemented the coal
consumption can be
reduced with obvious
advantages in energy
conservation and
environmental protection
and outstanding economic
benefits.
2
Zhanjiang
Zhongyue
Energy Co. Ltd.
#2 boiler based on
CO monitoring
technology and
application system
Through adjustment tests the
influences of air distribution mode
oxygen amount coal mill operation
mode coal quality and other factors on
the reductive atmosphere in the water
wall area of the boiler are explored.It has been
completed and
will be
consolidated by
the end of this
year.The balance point between
boiler efficiency and NOX
under different operating
conditions is grasped.3
Zhanjiang
Zhongyue
Energy Co. Ltd.
Upgrade and
transformation of
disaster preparedness
system
The capacity of the company's existing
disaster recovery backup system is
expanded.It has been
completed and
will be
consolidated by
the end of this
year.The disaster recovery
backup requirements are
met in the next 5 years.
4
Zhanjiang
Zhongyue
Energy Co. Ltd.
Combustion
optimization and
adjustment test for #1
and #2 Boilers
After the burner is reformed
combustion optimization adjustment
must be carried out to determine the
primary and secondary air volume
reasonable excess air coefficient
air-coal ratio pulverized coal fines
combustion inclination angle and swirl
intensity.
Completed
accounted for in
R&D costs.
After mastering the
operation characteristics of
each system the whole
system is tested under
optimal conditions
according to the suggested
adjustment methods in
each sub-adjustment
process to find the optimal
adjustment method.
5
Guangdong
Yudean Jinghai
Power
Generation Co.Ltd.Research and
application of key
control technology
for rapid load change
of generator units in
Jinghai Power
Generation
Company's FM
market
Conventional PID control strategy
cannot meet the demand of thermal
power unit FM auxiliary service
market and the practical application
effect of various advanced control
methods is not obvious while the
effective advanced machine-boiler
coordination control device has more
advantages in FM auxiliary service
effect than the energy storage device.The machine-boiler coordination
control method closely matched with
the energy storage device fully
utilized their respective advantages
with better effect improved the
response speed of the unit to load and
enabled the unit to have fast stable
and reliable load change capability.
Completed The project researches and
develops products with
completely independent
intellectual property rights
adopts plug-in advanced
coordination control
devices develops
coordination control
algorithm software
matched with energy
storage devices and
primary frequency
modulation algorithm
software matched with
energy storage devices.The market prospect is
huge and the benefits of
achievement
transformation are
remarkable.
6
Guangdong
Yudean Jinghai
Power
Generation Co.Ltd.Research and
application project of
energy consumption
and energy saving
optimization for
supercritical and
above generators
based on
benchmarking
management
The overall energy-saving operation of
600NW and 1000MW units is
automatically optimized to realize
automatic tracking adjustment and
optimization of the units under
different load and fuel adjustment
conditions and to realize optimal
operation of the units under the
existing equipment conditions.
Completed 50% The overall energy
consumption of the unit is
saved and the coal
consumption is
preliminarily estimated to
be more than 1.5g/kWh
thus realizing the
energy-saving operation of
the unit.
7
Guangdong
Yudean Jinghai
Power
Generation Co.Ltd.Guangdong
Engineering
Technology Research
Center Declared
Service Projects in
2019
Applied for biotechnology engineering
technology research center to improve
the company's engineering technology
research and development level.
Completed Obtained the title of
Guangdong Engineering
Technology Research
Center greatly improving
the company's scientific
and technological R&D
level and influence.
8
Guangzhou
Huizhou Natural
Gas Power
Generation Co.Technical Research
on Mitsubishi
M701F3 Gas Turbine
of Guangdong
The maintenance technology of
Mitsubishi M701F3 gas turbine is
studied.
Completed Realized the localization
of relevant technical
overhaul and reduced
overhaul cost.Ltd. Huizhou Natural Gas
Power Generation
Co. Ltd. (2018
continued to carry
forward to 2019
project)
9
Guangdong Red
Bay Power
Generation Co.Ltd.
Application and
research of new
on-grid detection
technology based on
inner wall oxide scale
status in residual life
assessment of high
temperature tube
screens of No.3 and
No.4 boilers
According to the on-site inspection
results and sampling experimental
data the inner wall oxide scale state
evaluation sampling tube material
evaluation and creep residual life
evaluation are respectively carried out
on the transition section tubes made of
ferritic steel in the inlet and outlet
header of high temperature and high
pressure superheater high temperature
and high pressure reheater and platen
superheater in the ladle of No.3 and
No.4 boilers.
The on-site
inspection work
has been
completed in
2019 and the
sampling tube
laboratory test
analysis will be
conducted in
2020.
The overheating damage
status of the three main
tube platen superheaters in
the ladle of No.3 and No.4
boilers is evaluated and the
creep residual life is
evaluated.
10
Guangdong Red
Bay Power
Generastion Co.Ltd.Research and
application on
economy and
operation
optimization of
blended burning of
imported coal after
ultra-low
transformation
The economy of blending four boilers
is deeply analyzed the comprehensive
cost of blending imported coal is
studied the profit space is calculated
and the coordinated optimization of the
whole blending process is further
realized to maximize the
comprehensive benefits.The 2019 project
has been
completed and
accepted.Realize the coordinated
optimization of the whole
process of blending and
sintering and realize the
maximization of
comprehensive benefits.
11
Guangdong Red
Bay Power
Generation Co.Ltd.
Application and
research of
multidimensional
lubrication failure
analysis method in
fault diagnosis of
important auxiliary
equipment
The multidimensional lubrication
failure analysis method implemented
in this project is based on lubrication
failure analysis and combined with
analysis methods such as vibration
analysis foreign body analysis and
failure feature analysis etc. to conduct
all-round analysis on important
auxiliary equipment failures
characterized by equipment lubrication
failure find out the causes of the
failures assist in professional analysis
treatment and resolution of the
failures and formulate maintenance
and resolution schemes for similar
failures.
50% of daily
equipment
lubrication
testing sampling
and testing
within the bid
section have
been completed
Through regular oil
monitoring and lubrication
failure analysis of
important auxiliary
equipment the project can
discover hidden dangers of
equipment in advance
analyze and deal with them
before equipment failure
occurs and avoid
occurrence or expansion of
defects. The
implementation of the
project aims to solve the
faults of oil stations
(lubricating oil stations
and hydraulic oil stations)
gear boxes and important
bearings optimize the
maintenance strategies of
these three types of
equipment and formulate
maintenance plans for
similar equipment so as to
reduce the occurrence of
repeated defects of
equipment and achieve the
purpose of improving the
reliability of equipment
and reducing maintenance
costs.
12
Guangdong Red
Bay Power
Generation Co.Ltd.
R&D and application
of SCR dynamic
partition intelligent
ammonia injection
system for unit 3
Development and field application of
SCR dynamic partition intelligent
ammonia injection system.In progress. Under the condition that
NOx emission stably
reaches the standard the
total ammonia injection
amount is reduced by
10%-15% and the
ammonia escape amount is
controlled to be ≤2 ppm
13
Guangdong Red
Bay Power
Generation Co.Ltd.
Application and
research of advanced
control technology
based on predictive
control theory in
coordinated control
system of large
thermal power
generating units
Application of advanced control
system in Unit 1 to improve
performance index.
Completed It solves the difficult
problems of poor
regulation performance of
the control system of unit
3 poor operation stability
of the unit large
fluctuation of main steam
temperature under variable
load conditions large
fluctuation of reheat steam
temperature main steam
pressure deviation of
1MPa-1.8MPa etc.
14
Guangdong Red
Bay Power
Generation Co.Ltd.
Adaptive control of
coal mill outlet
temperature for units
1 and 2 (600MW
supercritical)
In this project through optimizing the
operation control of the pulverizing
system on the premise of ensuring the
safe operation of the unit the adaptive
control system automatically sets the
outlet temperature of the coal mill
according to the different coal types to
reduce the exhaust gas temperature of
the boiler and improve the boiler
efficiency.
Completed According to different
kinds of coal the adaptive
control system
automatically sets the
outlet temperature of the
coal mill to reduce the
exhaust temperature of the
boiler and improve
15
Guangdong Red
Bay Power
Generation Co.Ltd.Whole-process
monitoring system
application of site
equipment based on
the Industrial Internet
of Things
Real-time monitoring data of 3 ship
unloaders and 4 stackers and
reclaimers are transmitted through
wired and wireless systems collected
and connected to SIS system and
incorporated into early warning system
management.
Completed The invention solves the
problem that many
important auxiliary
machine control systems
such as ship unloader
stacker-reclaimer and
condensate pump are not
provided with state
monitoring and measuring
points for early warning.
16
Shenzhen
Guangqian
Electric Power
Co. Ltd.
Study on mechanism
and control measures
of foam generation at
circulating water
outlet
Professional research and analysis are
carried out on the mechanism of
on-site foam generation and the most
effective foam control measures are
developed to ensure the environmental
protection image and reduce the cost
of defoaming agents.
Completed 100%Formulate the most
effective foam control
measures
17
Shenzhen
Guangqian
Electric Power
Co. Ltd.
Feasibility study on
upgrading and
reforming distributed
control system (DCS)
Thefeasibilitystudyontheupgradingand
reconstructionofdistributedcontrolsystem
(DCS)ofShenzhenQianwanGasTurbine
PowerPlantPhaseIProject iscarriedout
includingthescopeanddepthofupgrading
andreconstruction equipmentselectionetc.
Completed 100%Preparation of preliminary
feasibility study and
preliminary design for the
project
Situation of Research and Development Input by the Company
2019 2018 Increase/Decrease(%)
Number of Research and Development
persons (persons)
357 303 17.82%
Proportion of Research and
Development persons
4.83% 4.41% 0.42%
Amount of Research and Development
Investment ( Yuan)
31216857 15319005 103.78%
Proportion of Research and
Development Investment of Operation
Revenue
0.11% 0.06% 0.05%
Amount of Research and Development
Investment Capitalization ( Yuan)
21513254 10275228 109.37%
Proportion of Capitalization Research
and Development Investment of
Research and Development Investment
68.92% 67.08% 1.84%
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
5.Cash Flow
In RMB
Items 2019 2018 Increase/Decrease(%)
Subtotal of cash inflow received
from operation activities
33659185010 31552291981 6.68%
Subtotal of cash outflow received
from operation activities
25386501898 25552355625 -0.65%
Net cash flow arising from
operating activities
8272683112 5999936356 37.88%
Subtotal of cash inflow received
from investing activities
360804825 553123440 -34.77%
Subtotal of cash outflow for
investment activities
5146772301 3863003329 33.23%
Net cash flow arising from
investment activities
-4785967476 -3309879889 44.60%
Subtotal cash inflow received from
financing activities
15153940487 18696353753 -18.95%
Subtotal cash outflow for financing
activities
19131397299 20812608337 -8.08%
Net cash flow arising from
financing activities
-3977456812 -2116254584 87.95%
Net increase in cash and cash
equivalents
-490740923 573802402 -185.52%
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
1. Net cash flow from operating activities increased by 37.88% mainly due to the increase in operating cash
inflow resulted from the increase in electricity charges and the decrease in fuel costs this year.
2. Cash inflow from investment activities decreased by 34.77% mainly due to the higher year-on-year base of 162
million yuan in 2018 from the absorption and merger of Maoming Thermal Power Plant.
3. Cash outflow from investment activities increased by 33.23% mainly due to more investment expenditure on
infrastructure projects this year.
4. Net cash flow outflow from investment activities increased by 44.60% mainly due to the decrease in cash
inflow from investment activities and more investment expenditure on infrastructure projects in the reporting
period.
5. Net cash flow outflow from fund-raising activities increased by 87.95% mainly due to more corporate bonds
and other long-term and short-term borrowings and less new borrowings this year.
6. Net increase in cash and cash equivalents decreased by 185.52% year on year mainly due to the increase in
cash outflow caused by the company's active debt repayment during the reporting period.Notes to the big difference between cash flow from operating activities and net profit in the reporting year
√Applicable □ Not applicable
The main impact of non-cash outflow of assets depreciation and amortization interest expense of non-business
activities.
Ⅲ.Analysis of Non-core Business
□Applicable √Not applicable
Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2019 End of 2018
Proportion
increase/
decrease
Notes to
the
significant
change
Amount
Proportion in
the total
assets(%)
Amount
Proportion in
the total
assets(%)
Monetary fund 5081641969 6.73% 5574382892 7.60% -0.87%
Accounts receivable 3197690464 4.24% 3358331949 4.58% -0.34%
Inventories 1817059269 2.41% 1481817270 2.02% 0.39%
Investment real estate 52093631 0.07% 10810722 0.01% 0.06%
Long-term equity
investment
6455784562 8.55% 6395134754 8.72% -0.17%
Fixed assets 38555718718 51.09% 41157594848 56.13% -5.04%
Construction in process 10882003846 14.42% 7740754343 10.56% 3.86%
Short-term loans 5904132791 7.82% 7526000000 10.26% -2.44%
Long-term loans 16587103380 21.98% 18802292664 25.64% -3.66%
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
Impairme
nt
provisions
in the
reporting
period
Purchased
amount in
the
reporting
period
Sold
amount
in the
reporting
period
Other changes
Amount at
year end
Financial
assets
4.Other
equity
instrument
Investment
0 1498402802 2202745317 0 78162240 0 1565806331 3142371373
Available-f
or-sale
financial
assets
1139806
331
0 0 0 0 0 -1139806331 0
Total
1139806
331
1498402802 2202745317 0 78162240 0 426000000 3142371373
Financial
Liability
0 0
Content of other changes
According to the relevant provisions of the new financial instrument standard the company reclassified financial
assets and transferred available-for-sale financial assets to other equity instrument investment projects.
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 2019 the power charge rights of several power generation subsidiaries were pledged to the
bank to obtain long-term loans of 4231292593 yuan of which: the balance of long-term loans due within one
year was 240907909 yuan (as of December 31 2018: 2765356586 yuan were pledged to the bank to obtain
long-term loans of 213259115 yuan). The borrowings are detailed as follows:
As at December 31 2019 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 312019 December 312018
Guangdong Shaoguan Yuejiang Power Generation Co. Ltd. 1976685804 2151963439
Guangdong Yudean Leizhou Power Generation Co. Ltd. 232038267 236829612
Guangdong Yudean Qujie Wind Power Generation Co. Ltd. 1155920000 162820000
Guangdong Yudean Zhanjiang Wind Power Generation Co. Ltd. 121425000 138945000
Lincang Yudean Energy Co. Ltd. 676000000 -
Guangdong Yudean Xuwen Wind Power Generation Co. Ltd. 69223522 74798535
Total 4231292593 2765356586
In RMB
Name December 312019 December 312018
Guangdong Shaoguan Yuejiang Power Generation Co. Ltd. 188255791 186859840
Guangdong Yudean Zhanjiang Wind Power Generation Co. Ltd. 22860000 18274167
Lincang Yudean Energy Co. Ltd. 15000000 -
Guangdong Yudean Xuwen Wind Power Generation Co. Ltd. 6806543 6527993
Guangdong Yudean Leizhou Power Generation Co. Ltd. 7985575 1597115
Total 240907909 213259115
V.Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2019(RMB) Investment Amount in 2018(RMB) Change rate
2084276740 1179713500 76.68%
2.As at December 31 2019 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:
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
Name of the
Company
Invested
Main
Business
Investment
Way
Investment
Amount
Share
Proporti
on %
Capital
Source Partner
Investment
Horizon
Product
Type
Progress up to
Balance Sheet Date
Revenue
projection
Gain or Less
or the
Current
Investment
Whether
to
Involve
in
Lawsuit
Date of
Disclosure
(If any)
Disclosure
Index
Guangdong
Wind
Generation
Co. Ltd.
Wind
Generation
Capital
increase 339000000 100 %
Self
Funds No Long-term
Electric
power
During the reporting
period the
preliminary work or
project construction of
the Haiwanshi Wind
Farm the Guangxi
Wuxuan Wind Farm
Phase I Project and
Zhuhai Jinwan
Offshore Wind Farm
Project are
progressing normally.-- -29863251 No
August
312018
January
262019
and
November
292019
Announcement
No.:2018-46
2019-05 and
2019-58))Publi
shed in
China
Securities
Daily
Securities
Times and
http//.www.cni
nfo.com.cn
Guangdong
Yudean
Bohe Coal
&
Electricity
Co. Ltd.
Coal-fired
power
generation
Capital
increase 938000000 67 %
Self
Funds
Guangdong
Energy Group
Co. Ltd.：33%
Long-term Electricpower
As of the end of the
reporting period the
overall construction
progress of the power
plant project was
about 95.69% and
that of the wharf
project was about
78.65%.
-- -85636995 No September202018
Announcement
No.:2018-49)P
ublished in
China
Securities
Daily
Securities
Times and
http//.www.cni
nfo.com.cn
Guangdong
Yudean
Dapu Power
Generation
Co. Ltd.
Coal-fired
power
generation
Capital
increase 40000000 100 %
Self
Funds No Long-term
Electric
power
Units #1 and #2 have
been put into
production in
December 2015 and
June 2016
respectively.
9774686 No October312012
Announcement
No.:2012-45)P
ublished in
China
Securities
Daily
Securities
Times and
http//.www.cni
nfo.com.cn
Guangdong
Yudean
Qujie Wind
Power
Generation
Co. Ltd.
Wind
Power
Generation
Capital
increase 140000000 100 %
Self
Funds No Long-term
Electric
power
During the reporting
period the
construction of
Zhanjiang Wailuo
Offshore Wind Power
Project Phase II and
Zhanjiang Xinliao
Offshore Wind Power
Project was
progressing normally.
-- 55360992 No
October
312018
August
312019
and
November
292019
Announcement
No.:2018-54
2019-40 and
2019-59))Publi
shed in
China
Securities
Daily
Securities
Times and
http//.www.cni
nfo.com.cn
Shenzhen
Capital
Group Co.Ltd.Investment Capitalincrease 78162240 3.67%
Self
Funds
State-owned
assets
Supervision
and
Administration
Commission
of Shenzhen
Municipal
people's
Government
（shareholding ratio：
28.1952%）
Long-term VentureCapital In normal operation -- 18483929 No
September
202018
Announcement
No.:2018-50)P
ublished in
China
Securities
Daily
Securities
Times and
http//.www.cni
nfo.com.cn
Guangdong
Energy
Group
Finance Co.
Ltd.financial
service
Capital
increase 250000000 25 %
Self
Funds
Guangdong
Energy Group
Co. Ltd.
（Shareholding ratio：60%）；
Guangdong
Shajia (C)
Power
generation
Co. Ltd.
（Shareholding ratio：15%）
Long-term financialservice In normal operation -- 77073152 No
August
312019
Announcement
No.:2019-39)P
ublished in
China
Securities
Daily
Securities
Times and
http//.www.cni
nfo.com.cn
Guangdong
Huizhou
Natural Gas
Power
generation
Co. Ltd.
Natural
Gas
Generation
Capital
increase 29114500 67 %
Self
Funds
CNOOC(Shar
eholdingratio：33%）
Long-term Electricpower
During the reporting
period Unit #6 of
Huizhou LNG Power
Plant Phase II
Extension Project was
completed and put
into operation.
-- 214522143 No April282013
Announcement
No.:2013-36)P
ublished in
China
Securities
Daily
Securities
Times and
http//.www.cni
nfo.com.cn
Guangdong
Yudean
Binhaiwan
Energy Co.
Ltd.Natural
Gas
Generation
Capital
increase 270000000 100 %
Self
Funds No Long-term
Electric
power
During the reporting
period the
construction of the
replacement power
supply project at the
Ningzhou site in
Dongguan was
progressing normally.-- -2205468 No
June
132019
and
October
312019
Announcement
No.:2019-27
and
2019-53)Publis
hed in
China
Securities
Daily
Securities
Times and
http//.www.cni
nfo.com.cn
Total -- -- 2084276740 -- -- -- -- -- -- 0 257509188 -- -- --
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
account
ing
measur
ement
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/loss
of the
reporting
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 66150000 12096000 62355372 0 0 0 78246000
Other
eqiuty
instrument
Investment
Self
funds
Domestic and
foreign stocks
600642 Shenergy 235837988 FVM 270997380 51644993 86804385 0 0 0 322642373
Other
eqiuty
instrument
Investment
Self
funds
Domestic and
foreign stocks
831039 NEEQ 3600000 FVM 3618000 3564000 3582000 0 0 0 7182000
Other
eqiuty
instrument
Investment
Self
funds
Other securities investments held at the end
of the period
0 -- 0 0 0 0 0 0 0 -- --
Total 255328616 -- 340765380 67304993 152741757 0 0 0 408070373 -- --
Disclosure date for the notice of approval by
the Board (If any)
2019-10-31
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
Company
type
Sectors engaged in
Registered
capital
Total assets Net assets Turnover Operating profit Net Profit
Guangdong Yudean Jinghai Power
Generation Co. Ltd.Subsidiary
Power generation and
power station
construction.
2919272000 8430103272 3818398477 4796679483 555282884 415726514
Guangdong Huizhou Natural gas
Power Generation Co. Ltd.Subsidiary
Power generation and
power station
construction.
1499347500 3977990814 2107867563 4234691640 427067136 320182303
Shenzhen Guangqian Electric
Power Co. Ltd.Subsidiary
Power generation and
power station
construction.
1030292500 1745776487 1546811919 1600387887 291364287 219090916
Guangdong Huizhou Pinghai Power
Generation Plant Co. Ltd.Subsidiary
Power generation and
power station
construction.
1370000000 5164751985 1936411231 3029136753 526619479 210705126
Guangdong Red Bay Power
Generation Co. Ltd
Subsidiary
Power generation and
power station
construction.
2749750000 6127224932 3569826532 3841846212 576512325 434731209
Zhanjiang Electric Power Co. Ltd. Subsidiary
Power generation and
power station
construction.
2875440000 4294285448 4122512736 1860318943 321895603 283160720
Shanxi Yudean Energy Co. Ltd.Sharing
Company
Coal Investment 1000000000 4512343997 4116846803 7251090 609916284 610019213
Guangdong Guohua Taishan Power
Generation Co. Ltd.Sharing
Company
Power generation and
power station
construction.
4669500000 12142412953 10427643614 6549854533 795654213 580521643
Guangdong Energy Group Finance
Co. Ltd.
Sharing
Company
financial service 3000000000 20442893535 3914229597 713981963 390423697 308292609
Guangdong Yudean Shipping Co.Ltd.Sharing
Company
Freight 2465800000 2978756939 1282484551 1525757019 -1407330569 -1360556144
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 Binhaiwan Energy
Co. Ltd.
Invested
During the reporting period Dongguan
Ningzhou Electricity & Gas project was
in the preliminary stage and with
construction not commenced yet.Note:
1. During the reporting period due to the decline in coal prices the long-term cooperation and the narrowing of
bid price difference the profits of most coal-fired power plants increased significantly year on year. Some
loss-making subsidiaries such as Zhanjiang Zhongyue Zhenneng and Dapu turned losses into profits year on year
while Yuejiang Company also significantly reduced losses. Guangqian Company Huizhou LNG and other
companies with strong profitability for natural gas power generation projects have made a greater contribution to
the company's net profit to its parent.
2. Due to the intense power market competition of Yunnan Province Lincang Company a wholly-owned
subsidiary of the Company suffered from operating losses during the reporting period.
3. The company's investment income in affiliated companies has decreased significantly overall. Where Taishan
Company's profit dropped significantly year on year due to the decrease in electricity consumption. Affected by
the long-term downturn of shipping market shipping companies have made more provision for impairment
resulting in a larger year-on-year increase in losses.Ⅷ.Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
Currently China's power generation industry continues to present a diversified competitive pattern. 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.(II) Corporate development strategy
During the 13th Five-Year Plan period the company optimizes the development of coal and electricity steadily
develops gas and electricity vigorously develops clean energy sources such as wind power and hydropower
continuously optimizes the power supply structure and selects 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.(III) Production and operation plans
In 2020 the company's consolidated statement has a budget target value of 72.867 billion kilowatt hours of
on-grid electricity which is basically the same as the actual amount of on-grid electricity completed in 2019; The
budgetary target value of the main business revenue is RMB 28.42 billion and decrease of 598 million yuan
compared to the actual amount of main business operating revenue of RMB 29.018 billion; the budgetary value
for the full-year planned investment is RMB 1.617 billion a decrease of 467 million yuan over the actual
completed investment of RMB 2.084 billion in 2019.(Note: The above operating plan does not represent the company's profit forecast for 2020 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.)
(VI) Possible risks
Currentlyaffected by the covid-19 epidemic the growth of the world economy continues to slow down and the
sources of global turmoil and risk points have increased significantly. China is also in the process of transforming
its development mode optimizing its economic structure and transforming its growth momentum. The downward
pressure on the economy is increasing. The reform of state-owned assets in state-owned enterprises is advancing
in depth. The energy policy and market environment have changed profoundly. The production and operation
forms and deepening reform tasks of the company will be even more arduous.
Firstly external policies and the market situation are grim. According to the requirements of the state for
optimizing the energy structure the installed capacity of coal and electricity in the country is controlled within 1.1
billion KW accounting for 55% and there is limited room for development of coal and electricity. By the end of
2019 the company's coal and electricity installed capacity accounted for 80% of the total installed capacity with a
high proportion. On the other handaffected by the covid-19 epidemic the growth rate of electricity demand in the
whole society is slowing down and the competition among units in the province is intensifying. The increase in
new nuclear power installations and renewable energy sources will further reduce the on-grid electricity
consumption of power generation units under unified regulation. Plus the combined effects of the growth of "West
to East Power Transmission" the acceleration and expansion of electricity market reform carbon emissions and
unit economy the profits of coal and electricity are obviously reduced.Secondly the production safety situation is complicated. Some thermal power units of the company have been in
operation for a long time and are subject to deep peak regulation. The aging problem of unit equipment is
prominent and the reliability of equipment is seriously reduced; The frequent occurrence of unplanned outages of
newly commissioned gas turbine units has not been effectively contained; During the infrastructure construction
there are problems of lax control in design review equipment installation and acceptance commissioning
supervision and system handover; The management rigidity of major hazard sources such as ammonia station
needs to be improved; The contractor's safety management still needs to be strengthened.Thirdly the reform of the power system continued to deepen. In 2020 the new electricity price policy is surging.
China has made clear the timetable for independent operation of electricity trading institutions requiring the basic
establishment of a unified nationwide electricity trading organization system within the "14th Five-Year Plan"
period. Guangdong Province plans to launch the first full-month settlement trial operation of the spot electricity
market in the first half of 2020. The trial operation of "spread monthly transaction+absolute price weekly
transaction+spot" settlement will be organized continuously throughout the month. Competition in the Guangdong
electricity market will become increasingly fierce and spot electricity trading will bring new challenges.Meanwhile Guangdong's electricity market will expand to 260 billion KWH in 2020 with a year-on-year
increase of 60 billion KWH accounting for about 50% of the province's electricity generation placing higher
demands on electricity marketing.(V) Countermeasures
2020 is the year when a well-off society is completed in an all-round way and the 13th Five-Year Plan is
completed. At the same time it is facing a greater impact from the COVID-19 epidemic. It is of vital importance
to do all the work well. Firstly adhere to the "two focuses" of epidemic prevention and production to ensure stable
and orderly production and operation of the company. Since the outbreak of the epidemic the company has
actively promoted the implementation of the epidemic prevention and control measures in accordance with the
arrangements made by the Party Central Committee and the higher authorities. The management team has adhered
to its posts and conducted the front-line operations and has coordinated the prevention and control of the
epidemic and the resumption of work and production. At present through arduous efforts from all over the country
the situation of epidemic prevention and control has initially shown a trend of continuous improvement and
accelerated recovery of production and living order. The company shall strengthen epidemic prevention and
control in a prudent manner so as not to reduce its vigilance against the epidemic and not to reduce the prevention
and control requirements. It shall resolutely implement the relevant requirements for strengthening safe
production during the epidemic prevention and control period continue to implement strict safety and prevention
measures for key parts key areas key operations and key personnel further strengthen supply chain management
innovate power marketing and customer service methods and ensure stable and orderly production and operation
management.Secondly adhere to the new development concept and continuously push forward the optimization and adjustment
of power supply structure. Pay special attention to the closed-loop management of the company's "13th Five-Year
Plan" development tasks and scientifically compile the "14th Five-Year Plan" development plan. Actively
integrate into the construction of Guangdong-Hong Kong-Macao Greater Bay Area Shenzhen's advanced
demonstration zone and the development of Guangdong's "one core one belt and one area" and actively seek to
expand into regions with better resource conditions and higher power demand. Accelerate the promotion of
existing key projects to ensure the full production of Bohe Coal and Electricity Project and Zhanjiang Wailuo
Offshore Wind Power Project; Solidly promote the construction of offshore wind power projects such as Zhuhai
Jinwan Yangjiang Sharpa Zhanjiang Wailuo Phase II Zhanjiang Xinyu and other natural gas cogeneration
projects such as Dongguan Ningzhou Project and Huadu Project to ensure the completion of the annual project
investment and construction plan according to schedule; Increase investment in clean energy development and
project reserves and accelerate the advance of Shenzhen Guangming Gas and Electricity Huizhou Mobil
Chemical Complex supporting thermal power projects Zhaoqing Yongan Natural Gas Thermal Power Project and
Yangjiang Qingzhou Offshore Wind Power Project. Resolutely perform the responsibility to prevent and control
pollution vigorously promote the "clean water project" and speed up the implementation of the transformation of
zero emission of waste water from thermal power plants.Thirdly deepen the drive of reform and innovation to improve the development quality of listed companies.Implement the decision-making arrangements made by the Party Central Committee and the State Council to
actively develop the mixed ownership economy and the relevant arrangements made by the provincial SASAC
and Guangdong Energy Group to promote the reform of mixed ownership; Formulate and implement a plan to
integrate the property rights of managed power generation assets and gradually resolve the problem of
inconsistency between the property rights relationship and the management relationship. Steadily push forward
the reform and innovation of the system and mechanism improve the system and mechanism suitable for the
high-quality development of listed companies stimulate the endogenous power and vitality of enterprises
establish and improve the assessment methods for sub-enterprises and study and build an assessment and
distribution incentive mechanism that integrates incremental incentives bottom line constraints and fault tolerance
mechanisms.
Fourthly continue to strengthen the ability to identify and control risks and strive to prevent and resolve major
risks. According to the newly revised and implemented Securities Law Guidelines for the Standardized Operation
of Shenzhen Stock Exchange and other laws and regulations optimize the system and management process
further improve the corporate governance structure and comprehensively enhance the corporate governance
system and governance capability. Establish and improve the prevention and control management system and
fully utilize the internal audit and subsidiary supervisory board's supervisory function. Continue to improve the
large-scale supervision system ensure full coverage of audit supervision expand the daily supervision and
inspection scope of subsidiary supervisory boards and strengthen the admissibility and application of audit
supervision and inspection results in assessment and evaluation. Firmly establish compliance awareness
consolidate a risk control management system based on compliance management with internal control as a means
and comprehensive risk management as a guide and effectively prevent listed companies from decision-making
risks operational risks and debt risks.Ⅹ.Particulars about researches visits and interviews received in this reporting period
1.Particulars about researches visits and interviews received in this reporting period
Reception time Way of reception Types of visitors Basic index
February 202019 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 22
February 2019.
√ Applicable □ Not applicable
June 202019 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 25
June 2019.November 142019 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 19
November 2019.November 222019 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
November 2019.
December 202019 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 25
December 2019.
Reception times 6
Reception agency amount 24
Reception personal number 33
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 2017 to 2019 the company's cash dividends accounted
for 56.52% 66.39% and 54.94% of net profit attributable to the parent company 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 2019 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 1.2 (tax
inclusive per 10 shares; for B-share the company will distribute cash dividends of RMB 1.20 (tax inclusive) per
10 shares.
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.
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
(Other
included)
Ratio of the total cash
bonus (other ways
included) in net profit
Attributable to common
stock shareholders of
listed Company contained
in consolidation statement
2019 630034078.32 1146767033 54.94% 0 0 % 630034078.32 54.94%
2018 315017039.16 474461997 66.39% 0 0 % 315017039.16 66.39%
2017 420022718.88 743180431 56.52% 0 0 % 420022718.88 56.52%
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)
1.2
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) 630034078.32
Amount of cash dividend distributed in other way(s) (such as shares
repurchased)
0
Total amount of cash dividend (including other way(s) 525028398.60
Profit available for distribution (CNY) 2515113228
Proportion of the cash dividend in the total profit available for
distribution (%)
54.94%
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
The company determined 770265843 yuan as the net profit distribution base for the current year according to the lower of the
parent company's statement and the consolidated statement，plus the non-distributed profits of RMB1744847385 in the prior yearthus the upper limit of the distributable profits is RMB2515113228. According to the Articles of Association of the company
draw RMB77026584 for the statutory surplus reserve taking for 10% of net profits draw RMB192566461 for the other surplus
reserve taking 25% of the total net profits then the upper limit of the distributable profits to the shareholders is RMB2245520183.The company's 2019 annual profits distribution plan is: Based on that the number of the company’s total share capital at the end of
2019 is 5250283986 shares planned that the company will distribute cash dividends of RMB1.2 (tax inclusive) to A-share
shareholders and the company will distribute cash dividends of RMB 1.2 (tax inclusive) to B-share shareholders.III. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of 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
（1）Important accounting policy changes：
In 2017 the Ministry of Finance promulgated revised Accounting Standards for Business Enterprises
No.22-Recognition and Measurement of Financial Instruments Accounting Standards for Business Enterprises
No.23-Transfer of Financial Assets and Accounting Standards for Business Enterprises No.37-Presentation of
Financial Instruments (hereinafter collectively referred to as "New Financial Instrument Standards") and in 2019
it promulgated the Notice on Revising and Issuing the Format of General Financial Statements for Enterprises in
2019 (Caikuai [2019] No.6) which have been adopted by the Company to prepare the financial statements for
2019.
（2）Important accounting estimates changes：
According to the Group’s management assessment the estimated useful life of relevant fixed assets would be
significantly shortened according to the current shutdown requested by Guangdong Development and Reform
Commission. On 25 January 2019 the Group held the Ninth Session of the Board during its 7th meeting which
approved the Proposal on Adjustment for the Depreciation Periods for Fixed Assets of Shajiao A. According to the
proposal Shajiao A started to change the estimated useful life of certain fixed assets since 1 January 2019. As a
result fixed assets depreciation increased by 174 million yuan net profit attributable to the parent company
decreased by about 174 million yuan and the owner's equity attributable to the parent company decreased by about
174 million yuan in 2019.
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
Binhaiwan Energy Co. Ltd.
Dongguan
Guangdong
Humen Town Dongguan
City Guangdong
Electric
Power
30000000 100 % 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 (RMB10000) 332
Continuous life of auditing service for domestic accounting firm 4
Name of domestic CPA Wang Bin Li Yanhua
The Continuous Years of Audit Service of Certified Public
Accountants of China Certified Public Accountants
Wang Bin(4 years)Li Yanhua(1 year)
Has the CPAs been changed in the current period
□ Yes √ No
Description of the CPAs financial advisers or sponsors engaged for internal control auditing
□ Yes √No
In the report year the Company engaged PWC Certified Public Accountants (special general partnership)as the
certified public accountants and internal control audit body in 2019. The audit remuneration was RMB 3.32
million
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
Basic situation of lawsuit(arbitration)
Lawsuit
amount
(RMB
10000)
Whether
form into
estimated
liabilities
Process of
lawsuit(arbitration)
Trial results and
influences of
lawsuit(arbitration)
Situation of
execution of
judgment of
lawsuit
(arbitration)
Disclosure
date
Disclosure
index
On April 1 2019 Guangdong Huizhou Pinghai Power Plant
Co. Ltd. a holding subsidiary to the Company received a setof legal documents including the “Notice of Responding toaction” “Subpoena” and “Civil Indictment” from HuizhouIntermediate People's Court of Guangdong Province
involving the case of contract dispute of China Energy
Construction Group Guangdong Thermal Power Engineering
Co. Ltd suing Pinghai Power Plant on Construction Project
with the case number of No. 363-(2018) Yue Civil Action.The lawsuit claims include: 1. The Pinghai Power Plant is
ordered to pay the project amount of RMB 1659784.08
million (principal) and interest of RMB 724789.79
million(temporarily calculated as for the period from May 1
2011 to October 31 2018 with the final interest calculated as
of the date of actual payment shall be calculated in
accordance with the benchmark interest rate of similar loans
of the people's bank of China in the same period) to
Guangdong Thermal Power; the above principal and interest
amount to RMB 2384573.87 million; 2. The Pinghai Power
Plant is ordered to bear all the litigation costs including the
acceptance fee and the appraisal fee.
23845.74 No
The two pre-trial
preparation meetings
for the case were held in
the Intermediate
People's Court of
Huizhou City
Guangdong Province
respectively on May 14
2019 and July 18 2019
the court session time is
yet to be determined.The lawsuit has not
yet been heard.There are
uncertainties in the
final judgment and
execution so it is
temporarily
impossible to judge
the impact on the
company's profits in
2019 and beyond.
No
April 4
2019
Announcement
No.:2019-12)P
ublished in
China
Securities
Daily
Securities
Times and
http//.www.cn
info.com.cn
√ Applicable □ Not applicable
On July 8 2019 Guangdong Huizhou Pinghai Power Plant
Co. Ltd. the company's controlling subsidiary received a set
of legal documents such as Summon Notice of Proof and
Notice of Respondence to Action from the Intermediate
People's Court of Huizhou City Guangdong Province which
involved the case of China Energy Construction Group
Guangdong Electric Power Engineering Bureau Co. Ltd. v.Pinghai Power Plant Construction Contract Dispute (case No.
(2019) Y13MC No. 163). The lawsuit claims include: 1.
Pinghai Power Plant pays Guangdong Electric Power
Engineering Bureau 89.548053 million yuan (principal) and
interest of 36.526452 million yuan with the above principal
and interest totaling 126.074505 million yuan; 2. Pinghai
Power Plant bears the litigation expenses in this case.
12607.45 No
The case was originally
scheduled to be heard in
Huizhou Intermediate
People's Court on
August 14 2019 and
was later rescheduled to
January 17 2020 for the
first hearing of the first
instance. The two
parties exchanged
evidence and
cross-examined and
debated the
controversial issues and
the focus issues.
According to the
content of the trial
continue to collect
relevant information
and well ensure the next
step of responding to
the lawsuit.
During the trial of
the case in the first
instance there are
uncertain factors in
the final judgment
result and
execution so it is
temporarily
impossible to judge
the impact on the
company's profits in
2019 and beyond.
No
July
112019
Announcement
No.:2019-29)P
ublished in
China
Securities
Daily
Securities
Times and
http//.www.cn
info.com.cn
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.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
Nil
5. Other significant related-party transactions
√ Applicable □ Not applicable
（1）2019 daily related transactions were carried out after examination and approval by 2019 first 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 22
Billion and Handling the Deposit Settlement to the Related Party- Guangdong Energy Group Finance Co. Ltd.
(formerly "Guangdong Yudean Finance Co. Ltd.") by the Company and Some of its Subsidiaries was approved in
the company’s 2018 annual general shareholder meeting for implementation.
（3）In order to meet the business development needs of Guangdong Energy Group Finance Co. Ltd. (formerly
"Guangdong Yudean Finance Co. Ltd.") the company its related parties Guangdong Energy Group and
Guangdong Shajiao (Factory C) Power Generation Co. Ltd. jointly increased capital to the finance company of
which the company increased capital by 250 million Yuan to the finance company according to the 25% equity
ratio. The above matters have been reviewed and approved by the sixth meeting of the sixth Board of Directors of
the Company.Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
Estimates announcement of the Daily Related Party Transactions
of 2019
January 262019 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 122019 http//www.cninfo.com.cn.
Announcement on Related Party Transactions to Capital increase to
Guangdong Yudean Finance Co. Ltd.
August 312019 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 Energy Group on undertaking to perform related matters in order to avoid
horizontal competition and fulfill the commitments of related horizontal competition the Company and Energy
Group have signed the Equity Trust Agreement which entrusts the rights of shareholders of the Company within
the trust scope of Energy 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 Journal Securities Time and at www.cninfo.com.cn dated January 132018.Project that bring profit and losses to the company of more than 10% of the company's total profit in the reporting
period.
√□Applicable √ Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in
reporting period
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.(3) Lease
√ Applicable □Not applicable
Note :
As a lessee The Company rented houses and billboards from Yudean Real Estate Company and Yudean Property
Companythe rental fee incurred this year was RMB 11422326;
As a lessor the Company leased the houses to Yudean Property Company Yudean Shipping Company and
Qujiang New Energy Company the rental income for this year was confirmed to be RMB 833445;
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 RMB1269385.
Project that bring profit and losses to the company of more than 10% of the company's total profit in 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.
2.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
Guarante
e type
Guara
ntee
term
Complete
implemen
tation or
not
Guarantee
for
associated
parties (Yes
or no)
Yunnan Baoshan
Binlangjiang
Hydroelectricity
Development Co.
Ltd.
December
192007
4350
November
302007
1740
Guarante
eing of
joint
liabilities.
15
years
No No
Yunnan Baoshan
Binlangjiang
Hydroelectricity
Development Co.
Ltd.November
122008
7250
November
142008
145
Guarante
eing of
joint
liabilities.
12yea
rs
No No
Yunnan Baoshan
Binlangjiang
Hydroelectricity
Development Co.
Ltd.May 272009 9367 June 222009 4727
Guarante
eing of
joint
liabilities.
18yea
rs
No No
Yunnan Baoshan
Binlangjiang
Hydroelectricity
Development Co.
Ltd.May 272009 7250 May 272009 1450
Guarante
eing of
joint
liabilities.
15
years
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)
-1769
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)
8062
Guarantee of the company for its subsidiaries
Name of the
company
guaranteed
Related
announcement
date and no.
Amount of
guarantee
Date of
happening(dat
e of signing
agreement)
Actually
guarantee
amount
Guarante
e type
Guara
ntee
term
Complete
implemen
tation or
not
Guarantee
for related
party(yes or
no)
Zhanjiang Wind
Power Generation
Co. Ltd.
April 292009 18572
October
92010
6922.35
Guarante
eing of
joint
liabilities.
18
years
No No
Guangdong
Shaoguan Yuejiang
Power Generation
Co. Ltd.
November
162013
9000
January
282014
Guarante
eing of
joint
liabilities.
7
years
No No
Guangdong
Shaoguan Yuejiang
Power Generation
Co. Ltd.
November
162013
8100
January
292014
Guarante
eing of
joint
liabilities.
7
years
No No
Total of guarantee for subsidiaries
approved in the period(B1)
0
Total of actual
guarantee for
subsidiaries in the
period (B2)
-4518
Total of guarantee for subsidiaries
approved at period-end(B3)
141536
Total of actual
guarantee for
subsidiaries at
period-end(B4)
6922
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 o
signing
agreement)
Actual
mount
of
guarant
ee
Guarant
ee
type
Guarante
e term
Comp
lete
imple
menta
tion
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）
-6287
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）
14984
The proportion of the total amount of actually guarantee in the netassets of the Company (that is A4+B4+C4）%
0.57%
Including：
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed
70% directly or indirectly（E）
8062
Total guarantee Amount of the abovementioned guarantees（D+E+F） 8062
Description of the guarantee with complex method
(2) Illegal external guarantee
□ Applicable √ Not applicable
No Illegal external guarantee in the report period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
No any Entrusted Finance for the Company in the reporting period..
（2）Situation of Entrusted Loans
□ Applicable √ Not applicable
No any Entrusted loans for the Company in the reporting period..
4. Other significant contract
□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.XVIII. Social responsibilities
1. Information of performance of social responsibilities
For details please see the Social Responsibility Report of 2019 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 We will actively implement the overall arrangements and arrangements of Guangdong province for
targeted poverty alleviation and targeted poverty alleviation by adhering the concept of innovation coordination
green open and shared development the Company will strengthen the awareness of the overall situation and 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 actively implemented the overall deployment and
arrangement of Guangdong province's work on "targeted poverty relief and targeted poverty
alleviation" actively invest human material and financial resources in poverty relief work and its
six subsidiaries namely Yuejiang company Red bay company Zhenneng company Zhanjiang
company Dabu company and Zhanjiang wind power company actively carried out targeted poverty
relief assistance work.
I. Counterpart assistance of Yuejiang Company on Mi Xiashui village Quan’an Town Nan Xiong City
2019 is the key year for winning the first 100-year goal of building a well-off society in an all-round way and
winning the battle against poverty. According to the arrangement of relevant documents of the provinces and cities
Yuejiang Power Generation Company selected a cadre to serve as the party building instructor in the villages in
the second phase of provincial poverty-stricken villages to assist Shaoguan Municipal Government Office in
carrying out targeted poverty relief and targeted poverty alleviation work in Mixiashui Village:
1. Strengthen Party building. Centering on the deployment requirements of the central government provinces
cities and counties on the Party's construction to promote poverty alleviation and in combination
with the actual situation in Nanxiong City and Quan'an Town efforts are focused on "grasping points expanding
areas improving quality and strengthening capabilities" to give full play to the exemplary and leading role of
Party members. On June 27 a meeting of members of the general party branch of Mixiashui Village was held to
organize party lectures-Interpretation of the Regulations on Education Management of Party Members and
Interpretation of the Regulations on the Work of Party Branch.
2. Well ensure the people's livelihood. Fully implement the "Three Guarantees" policy and complete the reporting
of information on the dilapidated house reconstruction project for poor household Ye Chengxiang; Fully
implement poverty relief education guarantee for poor households in accordance with the policy requirements;
Promote full coverage of medical insurance fully implement the medical insurance policy and subsidize 41 poor
households to purchase urban and rural medical insurance; Send warm condolences to poor households and send
warm condolences to all poor households in January before the Spring Festival.
3. Accurate identification: in early June the work team stationed in the village together with town cadres and
village cadres conduct on-door visit to acquire the poverty information of Yao Shihui and Ye Chengming and
reported the information to Nanxiong Poverty Relief Office after comprehensive analysis and verification. Yao
Shihui and Ye Chengming are to be included in the poor households.
4. In 2019 it will continue to build 4 boutique villages including Liaowu Village Yaowu Village Liuwu Village
and Shigang Village. In the first half of the year it has basically completed the "three clean-ups and three
dismantlements" of relevant sections actively won the support of superior policies and made solid progress in the
construction of new rural demonstration villages.
5. According to the requirements of the Implementation Plan of "Award Instead of Compensation" for Targeted
Poverty Relief and Targeted Poverty Alleviation in Nanxiong City in 2019 the" Award instead of Compensation"
will be implemented for pig raising and peanut planting by poor households in the first half of the year.
6. Work hard to promote poverty relief through high-quality rice and passion fruit industries. Urge Mixiahui
Village Zhongzhi Cooperative to sign a high-quality rice purchase agreement with Nanxiong Jinyou Company to
unify the external sales through the cooperative open up the high-quality rice sales market and improve the
market bargaining power; Relying on Mixiashui Village Passion Fruit Planting Demonstration Base actively
guide and help 10 poor households in Mixiashui Village to participate in passion fruit planting regularly provide
technical guidance to growers and operate it through the "enterprise+cooperative+poor households" business
model carry out planting and management according to unified standards and adopt reserve price for purchase to
ensure the income of poor households.
7. Invest 1.2 million yuan (including 350000 yuan from Yuejiang Power Generation in 2017) in Sunshine Rose
Grape Modern Agricultural Industrial Park to increase the collective income of the village.
8. Well ensure the withdrawal of relatively poor households and villages. By the end of 2019 94 people from 39
poor households in Mixiashui Village have lifted out of poverty and completed the task of helping the poor
villages in Mixiashui Village out of poverty.II. Counterpart assistance of Red Bay Company on Yuexi VillageHetian Town Luhe County
Under the correct leadership of all levels of government and the careful guidance of the company's party
committee the company has successfully completed the designated assistance to Yuexi Village in 2019. The poor
village in Yuexi Village and 289 people from all 70 poor households have all passed the acceptance check by
Shanwei City's inspection team realizing two 100% dequeues as follows:
(I) Work progress
1. Strengthen party building guidance to help poverty alleviation
Under the leadership and guidance of local party committees the village-based team strengthens the construction
of village party organizations gives full play to the leading core role of party organizations in grass-roots work
leads the members of the "two committees" of the village and focuses on party construction poverty alleviation
development stability and building village rules and regulations. Firstly lead the team well. Strictly implement
the "three meetings and one lesson" system adhere to the democratic life meeting organizational life meeting and
talk system strict implement the village-level rules of procedure of "four discussion and two opennesses" and
gradually standardize the village party branch organization life; Comrade Zhang Chunsheng first secretary of the
village and leader of the task force took the lead in conducting party lessons organized the members of the
sub-branch to visit the old party members and the needy organized the party members to adhere to the principle of
"showing their identity making promises and making actions" went to the Red Education Base and the
Anti-corruption and Legal Education Base to receive education and launched the "My Motherland and I" singing
campaign to fully demonstrate the spirit of the party members of the village branch on loving the country and the
family is full of vigor and vitality for unity and Invigoration. Secondly build up the system. The village-based
team has given top priority to the party building work strengthened the leadership of the party building
continuously improved the management system revised and compiled village rules and regulations such as the
village collective asset management method the village financial revenue and expenditure management system
and the five good family selection method according to the actual conditions and actively constructed a village
governance system integrating village autonomy rule of law and rule of virtue. Thirdly complete practical work
well. Carry out the theme education activities of "Remain true to our original aspiration and keep our mission
firmly in mind" solidly pay attention to the achievement of theme education and ensure accomplishment for the
people; This year the village-based team helped solve the difficult problems such as the blocking of the village
telegraph poles the accumulation of water on the village roads and the piles of garbage in the pit and pond of
Xinwujia village. In addition the "two committees" of the village have jointly built the first centralized charging
station for electric vehicles at the village level in Luhe county. The charging station can charge 30 electric vehicles
at the same time and the income is owned by the village collective which can not only increase the collective
income of the village but also effectively solve the hidden trouble of electric vehicle charging and fire safety that
has long troubled the villagers. This project has won high praise from the county party committee and county
government of Luhe county. The column of "Direct Strike on the Spot" of Luhe county television station also
made a special report on it.
2. Implement targeted aid and consolidate poverty alleviation
On the basis of respecting the wishes of poor households the village-based team assists households in accordance
with the "one law for each household" requirement and adopts a variety of means such as ideological change
guidance technical "hematopoietic" support and implementation of policies and measures to implement accurate
policies and to ensure stable poverty alleviation for relatively poor households. According to the local
government's plan of "one policy for each village" and in coordination with the implementation of the overall
promotion of poverty-stricken villages poverty eradication has achieved remarkable results. Firstly implement
the policy of "three guarantees" and poverty alleviation for poor households without labor ability. Implement the
rural medical insurance for 289 people from the 70 village poor households and the education subsidy funds for
59 students from village poor households; Implement the guarantee policies for the village's 14 households with
five guarantees and 12 households with subsistence allowances and achieve policy poverty alleviation coverage;
Implement the policy of minimum living allowances for 40 people from 25 poor households households with
weak labor capacity in the village (non-whole-household minimum living allowances) to realize partial coverage;
Meanwhile efforts shall be made to improve the teaching environment of village primary schools build new
plastic playgrounds and equip multimedia classrooms to ensure that poor students can successfully complete their
studies. Second promote poor households with labor ability to shake off poverty and become rich independently.The village-based team continued to implement the bonus and subsidy system to achieve the goal of "one method
for each family and projects for every family" to get rid of poverty and become rich. 54 poor families with labor
ability in the village have each carried out more than 2 poverty alleviation projects. This year the Company won a
total of 309500 yuan in bonus and subsidy funds; At present the average annual disposable income of poor
families with labor ability in the village is above 13000 yuan and the average annual disposable income of rural
households in the village is 14200 yuan. The village-based team completed the withdrawal declaration for poor
families and poor villages in Yuexi Village according to the procedures which passed the inspection and
acceptance of Luhe County smoothly on December 5 and was also inspected and accepted by the inspection team
of Shanwei City on December 12. Thirdly establish a long-term mechanism to eradicate poverty. In order to
consolidate the effectiveness of poverty alleviation cultivate economic entities that drive the village collective
poverty alleviation stimulate the transformation of the aid work from "blood transfusion" to "hematopoiesis"
focus on the implementation of income projects in poverty alleviation industries so as to form a long-term income
mechanism a contract was signed for the rental project of the poverty alleviation industrial complex building this
year. The rental for the first year is 216600 yuan and the subsequent rental increases year by year. In addition to
the 30kW solar power generation project the investment in the county industrial park project and the ecological
plantation project the collective income of Yuexi Village has now reached 350000 yuan/year; In addition Yuexi
village poverty alleviation industry comprehensive roof PV power generation project has been connected to the
grid at the end of the year which is expected to add another 50000 yuan/year to the village collective income.(II) Main methods and highlights
1. The information for poor households is detailed and accurate. The village-based team will go to households
every month to fully grasp the production and living conditions of poor households and compare the information
collected during the visit with the original data in Guangdong Targeted Poverty Alleviation System to revise and
improve the data in real time to ensure "accuracy". Up to now the Guangdong Precision Poverty Alleviation
Information System has completed more than 2000 information revisions including the increase and decrease of
poor household members labor force adjustment personal information revision aid docking poverty alleviation
measures and monthly reports.
2. The village collective economy grows significantly. The village-based team scientifically formulated the
assistance plan continuously strengthened Yuexi village's collective economy and improved the village's own
"blood-forming" ability. At present Yuexi Village's collective income has achieved a zero breakthrough reaching
350000 yuan/year of which 35000 yuan/year is from the roof photovoltaic power generation project of Yuexi
Village Primary School; 50000 yuan/year is from the annual income of Xiantang Plantation Project; 70000
yuan/year is from the investment income in Xinhe Industrial Park; And 200000 yuan/year is from the rental
income of poverty-relief industrial buildings which increases year by year. The roof PV power generation project
of Yuexi Village Poverty Alleviation Industrial Building is expected 50000 yuan/year.
3. The aid work is featured by both strength and warmth. From 2016 to 2019 the Company has invested 11
million yuan in Yuexi Village and raised 450000 yuan in industry and society. At the same time of strengthening
the assistance we also pay attention to the warmth of the assistance work and insist on visiting poor households
every month to help solve practical difficulties. The village-based team arranges special funds for condolences to
poor families during traditional festivals such as Dragon Boat Festival Mid-Autumn Festival Spring Festival etc.organizes condolences to old party members and poor party members before July 1 each year and conducts
awards teaching and assistance activities in Yuexi Primary School during Teachers' Day each year; A villagers'
congress was held in November 2019 to select the "Five Good Families" "Beautiful Courtyard" "Model of
Poverty Alleviation" and "Model of Self-improvement" awards in Yuexi Village and to issue awards.
4. Explore new ways and means to build a rural governance system that combines autonomy rule of law and rule
of virtue. Under the active exploration supervision and guidance of the village-based team Yuexi Village has
revised and compiled the Village Rules and Regulations according to the actual situation. Through the "Four
Discussions and Two Openings" procedure it has formulated such rules and regulations as the Fund Management
Measures to Help Yuexi Village in Hetian Town for "Targeted Poverty Assistance and Poverty Alleviation"
Management Measures for Yuexi Village Collective Assets Yuexi Village Financial Revenue and Expenditure
Management System Management Measures for Yuexi Village Self-built Housing and Decoration and Selection
Measures for Five Good Families in Yuexi Village. Through continuous improvement of the management system
a rural governance system combining village autonomy rule of law and rule of virtue is established.III. Counterpart assistance of Zhenneng Company on Xinpo Village Shalang Town Dianbai District Maoming
City
According to the deployment and requirements of Maoming municipal party committee and municipal
government for 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 and sent a poverty alleviation team to
the village. With the joint efforts of the three helping units the village-based team and the town and village cadres
have made concerted efforts to promote the development of accurate poverty alleviation through the establishment
and improvement of the leading agencies for assistance the formulation of a sound assistance work plan accurate
identification of villages and households and the customization of various assistance measures. As a result the
targeted poverty alleviation work in Xinbei Village has cotntinuously made new progress and achieved new
results.(I) The leaders attach great importance to carefully guide and work together to tackle targeted poverty alleviation
Since 2019 leaders at all levels have attached great importance to the accurate assistance work in Xinbei Village.
Deng Yongming deputy director of the Standing Committee of the Municipal People's Congress has visited the
village three times for investigation and guidance and Lin Zhenguang deputy director in charge has led the team
many times to the village for investigation and guidance so as to promote the targeted poverty alleviation work.The main leaders of the three aid units held several joint meetings to discuss and solve major problems and decide
on major issues. They also organized the responsible persons to visit the linked households to follow up and
promote the aid projects during the Spring Festival Mid-Autumn Festival and other holidays. At the same time
the progress of poverty alleviation work existing problems and the next work plan are regularly reported on a
monthly basis.(II) Steady progress precise implementation with focus on the implementation of income and poverty alleviation
measures
Over the past four years Xinbei Village has implemented a combination of "short-term medium-term and
long-term" income-increasing projects namely a short-term household vegetable basket project a medium-term
agricultural industrial park project and a long-term photovoltaic power generation project.
Firstly implement the family vegetable basket project. The main purpose is to help units set up a subsidy fund to
provide seedlings and means of production and to assist them in selling agricultural products. In 2017 support
units supported more than 60000 yuan helped 6 households to build standard chicken houses and distributed
1760 Xinyi Huaixiang chicken seedlings and feed to 16 poor households; In 2018 the support unit supported
30000 yuan providing 1000 chicken seedlings to 12 poor households conducted technical training signed a
guaranteed recovery agreement and assisted poor households in selling product chickens; In 2019 the aid unit
supported another 35000 yuan providing 1000 chicken seedlings to 15 poor households and increasing the
income of poor households by 130000 yuan in total over the past three years. 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 build an agricultural industrial park. With the adoption of the "cooperative+poor households" model led
by open source cooperative the 50 mu agricultural planting base with special financial funds for poor households
and support funds from supporting units and the 50 mu red hearts guava are expected to be picked and sold in
February 2020 with an annual output of about 100000 kg increasing the income of poor households members by
about 200 yuan/year/person.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 in Xinbei Village. Both parties invest 1 million yuan each and the cooperation period is 20 years. The
project was connected to the grid for normal power generation by July 20 2018. In 2018 and 2019 poor
households with labor force received dividends of 600 yuan/year/person. It is estimated that they will receive
dividends of 600 yuan/year/person in 2020. From 2021 the village committee will handle the issues according to
the targeted poverty alleviation policy at that time.In addition in 2018 poor households' overall financial funds totaled 509.63 million yuan to invest in the
construction of distributed PV power generation project by Dianbai Water Investment Group with a cooperation
period of 20 years. The fixed annual dividend model is adopted with 7% of the total investment (35.6741 million
yuan) to be distributed to the village committee. In 2019 poor households with labor ability received dividends of
100 yuan/year/person. It is estimated that the dividend will be distributed to 300 yuan/year/person in 2020. From
2021 onwards the village committee will handle the issue according to the targeted poverty alleviation policy at
that time.(III) Led by party building with foundation strengthened strive to play the role of a fighting fortress
With the construction of the village branch as the core the first secretary stationed in the village and the poverty
alleviation team leader took the lead in earnestly studying the spirit of the 19th National Congress of the
Communist Party of China the 19th Second Third and Fourth Middle Schools carrying out the theme education
activities of "Remain true to our original aspiration and keep our mission firmly in mind" fully mobilizing the
enthusiasm of Party members and actively supporting the daily work of the "two committees" in the village the
targeted poverty alleviation work and the new rural construction work. Pay close attention to the team style
construction organize the village two committees team to learn to oppose the "four conducts" requirement and the
central eight regulations and build a "people-oriented pragmatic and honest" village "two-committee" team.Strengthen the education of purpose temper the party spirit of the cadres of the "two committees" in the village
and make the cadres of the "two committees" in the village have higher prestige among the masses which is
conducive to the smooth implementation of various tasks.IV. Counterpart assistance of Zhanjiang Company on Waiyuan Village Nanxing Town Leizhou City
In 2019 under the unified arrangement and leadership of the company and the poverty relief offices of Zhanjiang
and Leizhou the company earnestly implemented the relevant regulations of the provinces cities counties and
towns. The poverty relief staff worked hard and actively organized human material and financial resources to
invest in the poverty relief work. The results are as follows:
1. Offer condolences to poor families with 14770 yuan invested by the company in the Spring Festival Company
in 2019.
2. In 2019 the company invested 25000 yuan to build Chenpai small sports square.
3. Help poor households to buy chemical fertilizers (81448000 national financial funds) for agricultural
production improve crop yields and increase economic income.
4. Organize to participate in the "three clean-ups three demolitions three remediations" activities of Nanxing
town organization.
5. Complete the reporting of newly added poor households and terminate the reporting of poor households.
6. Organize party members to learn Xi Jinping's important speech.
7. Welcome the inspection of Zhanjiang discipline inspection team of SASAC.
8. Assist Zhanjiang Meteorological Bureau's "July 1" condolences to Party members.
9. Organize poor households with labor ability to invest in Guangdong Yujie Agro-ecological Development Co.
Ltd (national financial fund 400000).
10. Complete investment in photovoltaic power generation projects for poor households (national financial fund
1.408 million).
11. Assist the village committee in renovating the doors and windows of the village committee office building.
12. Organize poor households with labor ability to invest in Leizhou Agricultural Development Co. Ltd (state
financial fund 300000).
V. Counterpart assistance of Dapu Company on Xiamu Village Fenglang Town Dapu County Meizhou City
In 2019 Dapu Power Generation Company continued to send party building instructors and Jianghai Sub-district
Office of Haizhu District of Guangzhou City to assist Xiamu Village Fenglang Town Dapu County Meizhou
City and carried out the following aid work:
1. Solid grass-roots party building: invest 29500 yuan to build the activity room for new party members of the
village committee and purchase a number of office desks and chairs and well ensure party building publicity
columns and system publicity;
2. Carry out activities to celebrate the 98th anniversary of the founding of the Party offer condolences to 4 old
party members in difficulty and organize party members to visit and study in Ruijin Jiangxi a red education base.
3. Invest 5400 yuan for the Spring Festival condolences of 18 old party members;
4. As of December 31 2019 through dynamic management 142 people from 70 poor households in the village
have been lifted out of poverty.VI. Counterpart assistance of Zhanjiang Wind Power Co. Ltd. on Houhai Village Xinliao Town Xuwen County
In 2019 Zhanjiang Wind Power Company continued to carry out targeted poverty alleviation work in Houhai
Village of Xinliao Town and Shuitou Village of An Town in Xuwen County (serving as party building instructor in
the village). Under the strong leadership of the Party committee at the higher level the strong cooperation of the
cadres of the "two committees" in the village and the efforts of the stationed team various poverty relief projects
have been actively implemented for poor households and the utilization rate of special funds for poverty relief in
provinces and cities has reached 100%. In addition the self-raised funds of aid units are used to help poor
households and village collectives to solve practical difficulties and aid projects such as asset aid industrial aid
(to help develop aquaculture) employment aid and holiday condolences are actively implemented. Through
innovative measures such as establishing files for each household dynamic control and one policy for each
household the targetness and comprehensiveness of poverty alleviation work are effectively improved. By
December 2019 363 poor households in Houhai Village had been lifted out of poverty all of them had achieved
the "eight haves" and reached the poverty alleviation standard. The poverty alleviation rate of poor households in
Houhai Village reached 100%.
(3)Targeted Poverty Alleviation Result
Index Measurement unit Quantity / Status
I. General situation —— ——
Thereinto： 1.Capital In RMB 10000 380.52
2. Cash supplies In RMB 10000 0.47
3. Ecological protection to poverty alleviation person 1205
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 5
1.3 Investment amount of industrial development
poverty alleviation project
In RMB 10000 246.23
1.4 The number of poverty population who had been
helped to create a file
person 339
2. Poverty alleviation by transfer employment —— ——
Among them: 2.1 Investment amount of vocational skill
training
In RMB 10000 0.26
2.2 Number of people of vocational skill training person 30
2.3 Quantity of employment of poverty population who
had been helped create a file
person 48
3. Poverty alleviation by relocation —— ——
4. Educational poverty alleviation —— ——
Among them: 4.1 Investment amount of subsidizing
poverty students
In RMB 10000 47.71
4.2 Number of subsidized poverty students person 167
5. Health poverty alleviation —— ——
6. Ecological protection poverty alleviation —— ——
7. Guarantee of all the details —— ——
8. Social poverty alleviation —— ——
9. Other projects —— ——
Among them: 9.1 Number of project a 2
9.2 Investment amount In RMB 10000 16.84
9.3 Number of poverty population who had been helped
to create a file
person 818
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. 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.
3. 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
Emission
port
number
Emission
port
distributio
n
condition
Emission
concentratio
n
Implemented
pollutant
emission
standards
Total
emission
Verified
total
emission
Excessive
emission
condition
Shajiao A
power plant
Smoke
Concentr
ated
emission
through
chimney
2
Within the
factory
1.68
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
42.20
Not
approved
No
Shajiao A
power plant
SO2
Concentr
ated
emission
through
chimney
2
Within the
factory
17.05 428.04
Not
approved
No
Shajiao A
power plant
NOX
Concentr
ated
emission
through
chimney
2
Within the
factory
25.28 634.81
Not
approved
No
Guangdong
Dapu Power
Generation
Co. Ltd.
NOX
Concentr
ated
emission
through
chimney
2
Within the
factory
1.72
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
34.967 593 No
Guangdong
Dapu Power
Generation
Co. Ltd.
Smoke
Concentr
ated
emission
through
chimney
2
Within the
factory
10.15 206.353 1447 No
Guangdong
Dapu Power
Generation
Co. Ltd.
SO2
Concentr
ated
emission
through
chimney
2
Within the
factory
27.85 566.277 1502 No
Zhanjiang
Zhongyue
Enerty Co.
Ltd.Smoke
Concentr
ated
emission
through
chimney
2
Within the
factory
1.41
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
29.20 480 No
Zhanjiang
Zhongyue
Enerty Co.
Ltd.
SO2
Concentr
ated
emission
through
chimney
2
Within the
factory
14.37 297.04 1200 No
Zhanjiang
Zhongyue
Enerty Co.
Ltd.NOX
Concentr
ated
emission
through
chimney
2
Within the
factory
26.36 544.70 1587 No
Guangdong
Shaoguan
Yujiang
Power
Generation
Co. Ltd.
Smoke
Concentr
ated
emission
through
chimney
2
Within the
factory
330MW
unit：9.28；
600MW
unit：1.11
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
76.7 717.78 No
Guangdong
Shaoguan
Yujiang
Power
Generation
Co. Ltd.
SO2
Concentr
ated
emission
through
chimney
2
Within the
factory
330MW
unit：98.53；
600MW
unit：14.46
858.31 2303.55 No
Guangdong
Shaoguan
Yujiang
Power
Generation
Co. Ltd.
NOX
Concentr
ated
emission
through
chimney
2
Within the
factory
330MW
unit：
116.11；
600MW
unit：32.46
1263.06 2809.07 No
Zhanjiang
Electric
Power Co.Ltd.Smoke
Concentr
ated
emission
through
chimney
2
Within the
factory
2
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
47.547 47.55 No
Zhanjiang
Electric
Power Co.Ltd.
SO2
Concentr
ated
emission
through
chimney
2
Within the
factory
9 256.47 256.47 No
Zhanjiang
Electric
Power Co.Ltd.NOX
Concentr
ated
emission
through
chimney
2
Within the
factory
27 757.11 757.11 No
Guangdong
Yudean
Jinghai
Power
General
Co. Ltd.
Smoke
Concentr
ated
emission
through
chimney
2
Within the
factory
2.30
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
120.32 1770 No
11) special
emission limit
Guangdong
Yudean
Jinghai
Power
General
Co. Ltd.
SO2
Concentr
ated
emission
through
chimney
2
Within the
factory
19.87 1040.69 6502 No
Guangdong
Yudean
Jinghai
Power
General
Co. Ltd.
NOX
Concentr
ated
emission
through
chimney
2
Within the
factory
35.33 1850.54 4687 No
Guangdong
Red Bay
Power
General
Co. ltd.
Smoke
Concentr
ated
emission
through
chimney
2
Within the
factory
3.34
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
135.5
Not
approved
No
Guangdong
Red Bay
Power
General
Co. ltd.
SO2
Concentr
ated
emission
through
chimney
2
Within the
factory
8.98 384.1
Not
approved
No
Guangdong
Red Bay
Power
General
Co. ltd.
NOX
Concentr
ated
emission
through
chimney
2
Within the
factory
32.83 1368.66
Not
approved
No
Maoming
Zhenneng
thermal
power Co.Ltd.Smoke
Concentr
ated
emission
through
chimney
2
Within the
factory
1.92
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
32.13 168.12 No
Maoming
Zhenneng
thermal
power Co.Ltd.
SO2
Concentr
ated
emission
through
chimney
2
Within the
factory
12.43 155.78 385.51 No
Maoming
Zhenneng
thermal
power Co.Ltd.NOX
Concentr
ated
emission
through
chimney
2
Within the
factory
30.44 528.69 689.58 No
Pinghai
Power plant
Smoke
Concentr
ated
emission
through
chimney
2
Within the
factory
1.78
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
55.18 700 No
Pinghai
Power plant
SO2
Concentr
ated
emission
through
chimney
2
Within the
factory
22.60 685.08 1750 No
Pinghai
Power plant
NOX
Concentr
ated
emission
through
chimney
2
Within the
factory
43.52 1118.05 3500 No
Guangdong
Guohua
Yudean
Power
Generation
Co. Ltd.
Smoke
Concentr
ated
emission
through
chimney
6
Within the
factory
1.8
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
151 No No
Guangdong
Guohua
Yudean
Power
Generation
Co. Ltd.
SO2
Concentr
ated
emission
through
chimney
6
Within the
factory
14.6 1230 No No
Guangdong
Guohua
Yudean
Power
Generation
Co. Ltd.
NOX
Concentr
ated
emission
through
chimney
6
Within the
factory
30 2524 No No
Qianwan
LNG Power
Plant
NOX
Concentr
ated
emission
through
chimney
3
Within the
factory
31.65
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) special
emission limit
491 1312.5 No
Huizhou
LNG Power
Plant
NOX
Concentr
ated
emission
through
chimney
5个
Within the
factory
34.35
Emission
Standard of
Air Pollutants
for Thermal
Power Plants
(GB13223-20
11) 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
1.The company's holding subsidiary Guangdong Yudean Pinghai Power Plant Co. Ltd received the
“Administrative Punishment Decision” issued by the Guangdong Provincial Ocean & Fisheries Bureau onNovember 14 2016 (No. 019-2016 Yuehai Executive Punishment) and the punishment decision “ordered Pinghaito return the illegally occupied sea areas and restore the sea areas to their original state and sentenced 10 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.
On August 23 2019 the higher people's court of Guangdong province issued the Administrative Judgment (Case
No.: (2018) YXZ No. 409). The provincial high court held that the original court's judgement on that the
Administrative Penalty Decision No. 019 [2016] issued by the provincial ocean and fishery department and the
Administrative Reconsideration Decision No. 48 [2017] issued by the provincial government were both legal and
the lawsuit request of Pinghai Power Plant Co. Ltd. was rejected were made based on sufficient grounds and
without any impropriety. The court upheld the judgment. According to Article 89 Paragraph 1 (a) of the
administrative procedure law of the People's Republic of China the judgment is as follows: the appeal is rejected
and the original judgment is upheld. The acceptance fee for the second trial case 100 yuan shall be borne by the
appellant Guangdong Huizhou Pinghai Power Plant Co. Ltd. The case is final. "
On February 20 2020 Pinghai Power Plant applied to the Supreme People's Court for a retrial of the case which
was accepted by the Supreme People's Court.The Company has included the above penalty amount into the non-recurring profit and loss in 2016 according to
the Decision on Administrative Penalty (YHZCF [2016] No.019) which affected the reduction of net profit
attributable to shareholders of the parent company by about 77.4 million yuan in 2016. Pinghai Power Plant has
paid the fine according to the judgment. According to the Agreement on Issuance of Shares and Purchase of
Assets signed by Guangdong Energy Group and the Company in 2012 Guangdong Energy Group will
compensate the Company according to the results of the above events and the actual losses caused by these
events.
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".
Pinghai Power Plant refuses to accept the punishment measures in the Decision on Administrative Penalty and
filed an application for administrative reconsideration with Huidong County People's Government. On April 23
2019 Huidong County People's Government made the Decision on Administrative Reconsideration to maintain
the administrative penalty decision made by Huidong County Oceanic and Fishery Bureau. On April 24 2019
Pinghai Power Plant filed an administrative lawsuit with Guangzhou Maritime Court. The Guangzhou Maritime
Court held a hearing on June 12 2019 and has made no judgment so far.
According to the Company's audited net profit attributable to the shareholders of the parent company of 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.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
allotm
ent
Bonus
shares
Capita
lizatio
n of
comm
on
reserv
e fund
Other
Subto
tal
Quantity Proportion
I. Share with
conditional
subscription
1897968946 36.15% 1897968946 36.15%
2. State-owned
legal person shares
1893342621 36.06% 1893342621 36.06%
3.Other domestic
shares
4626325 0.09% 4626325 0.09%
Of which：
Domestic legal
person shares
4620666 0.09% 4620666 0.09%
Domestic natural
person shares
5659 0 % 5659 0 %
II. Shares with
unconditional
subscription
3352315040 63.85% 3352315040 63.85%
1.Common shares
in RMB
2553907040 48.64% 2553907040 48.64%
2.Foreign shares in
domestic market
798408000 15.21% 798408000 15.21%
III. Total of capital
shares
5250283986 100 % 5250283986 100 %
Reasons for share changed
□Applicable √Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□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
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 Shares
Total number
of common
shareholders at
the end of the
reporting
period
94372
Total shareholders
at the end of the
month from the
date of disclosing
94679
The total number
of preferred share
holders voting rig
hts (if any)(See
Notes 8)
0
Total
preferred shareholde
rs at the end of the
month from the date
of disclosing the
annual report(if
any)(See Notes 8)
0
Particulars about shares held above 5% by shareholders or top ten shareholders
Shareholders Nature of
shareholder
Proporti
on 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
Amou
nt
Guangdong
Energy Group
Co. Ltd.
State-owne
d legal
person
67.39% 3538005285 1893342621 1644662664
China Securities
Finance Co.
Ltd.State-owne
d legal
person
2.84% 148862420 148862420
Shenzhen
Guangfa Electric
Power Investment
Co. Ltd.
State-owne
d legal
person
2.22% 116693602 116693602
Guangdong
Electric Power
Development
Corporation
State-owne
d legal
person
1.80% 94367341 94367341
Li Zhuo
Domestic
Natural
person
0.60% 31623523 81200 31623523
Zheng Jianxiang
Domestic
Natural
person
0.44% 23234898 667200 23234898
Harbin Hali
Industry Co. Ltd.
Domestic
Non-State
owned legal
person
0.40% 21226814 284169 21226814
CHINA INT'L
CAPITAL CORP
HONG KONG
SECURITIES
LTD
Overseas
Legal
person
0.29% 15316066 15316066
Harbin Daoli
District Charity
Foundation
Domestic
Non-State
owned legal
person
0.26% 13658506 -64387 13658506
VANGUARD
EMERGING
MARKETS
STOCKINDEX
FUND
Overseas
Legal
person
0.25% 13088628 13088628
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 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 31623523 RMB Common shares 31623523
Zheng Jianxiang 23234898
Foreign shares placed in
domestic exchange
23234898
Harbin Hali Industry Co. Ltd. 21226814 RMB Common shares 21226814
CHINA INT'L CAPITAL
CORP HONG KONG
SECURITIES LTD
15316066
Foreign shares placed in
domestic exchange
15316066
Harbin Daoli District Charity
Foundation
13658506 RMB Common shares 13658506
VANGUARD EMERGING
MARKETS STOCK INDEX
FUND
13088628
Foreign shares placed in
domestic exchange
13088628
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 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 holds116200 A shares of the Company through A shares
ordinary stock account and holds31507323A shares of the Company through stock account
with credit transaction and guarantee holds 31623523 shares of the Company's stock totally.The seventh largest shareholder Harbin Hali Industry Co. Ltd. holds284169A shares of the
Company through A shares ordinary stock account and holds20942645 A shares of the
Company through stock account with credit transaction and guarantee holds 21226814 shares
of the Company's stock totally.The Ninth largest shareholder Harbin Daoli District Charity Foundation holds7900A shares of
the Company through A shares ordinary stock account and holds 13650606A shares of the
Company through stock account with credit transaction and guarantee holds 13658506 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 energyelectricity 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 convertible corporate bonds
□ Applicable √Not applicable
During the reporting period the company did not have convertible corporate bonds.
IX. 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-b
egin
(share)
Amount
of shares
increase
d at the
reporting
period
(share)
Amount
of shares
decrease
d at the
reporting
period
(share)
Other
changes
increase/
decrease
Shares
held at
the
year-end
(share)
Wang Jin
Board
chairman
In
office
Male 56
June
112018
September
182020
Wang Jin Director
In
office
Male 56
Septembe
r 182017
September
182020
Rao Subo Director
In
office
Male 55
Septembe
r 182017
September
182020
Wen Lianhe Director
In
office
Male 51
Septembe
r 182017
September
182020
2830 2830
Chen Ze Director
In
office
Male 49
Septembe
r 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
Yan Ming Director
In
office
Male 48
February
212019
September
182020
Li Baobing Director
In
office
Male 45
Novembe
r 192019
September
182020
Liang Peilu
Employee
director
In
office
Male 55
August 2
2019
September
182020
Mao
Qinghan
Director
In
office
Male 45
August 2
2019
September
182020
Sha Qilin
Independe
nt director
In
office
Male 59
May 20
2014
September
182020
Shen
Hongtao
Independe
nt director
In
office
Fema
le
52
May
202016
September
182020
Wang Xi
Independe
nt director
In
office
Male 49
May
202016
September
182020
Ma
Xiaoqian
Independe
nt director
In
office
Male 55
Septemer
182017
September
182020
Yin
Zhongyu
Independe
nt director
In
office
Male 50
Septembe
r 182017
September
182020
Zhang
Dewei
Chairman
of the
Supervisor
y
Committe
e
In
office
Male 58
August
142012
September
182020
Shi Yan Supervisor
In
office
Fema
le
42
Novembe
r 192019
September
182020
Zhu
Weiping
Independe
nt
Supervisor
In
office
Male 62
May
202014
September
182020
Jiang
Jinsuo
Independe
nt
Supervisor
In
office
Male 51
May 20
2014
September
182020
Lin
Weifeng
Employee
supervisor
In
office
Male 51
May
152002
September
182020
4716 4716
Li Qing
Employee
supervisor
In
office
Male 42
May
202014
September
182020
Tang
Yongguang
Deputy
GM
In
office
Male 57
Novembe
r 282019
September
182020
Liu Hui
Deputy
GM
In
office
Fema
le
54
July
282010
September
182020
Liu Wei
Deputy
GM
Finance
manager
In
office
Male 40
Septembe
r 182017
September
182020
Liu Wei
Board
secretary
In
office
Male 40
October
242006
September
182020
Wen Shufei Director
Dimiss
ion
Fema
le
55
Septembe
r 182017
September
252019
Zhou Xian Director
Dimiss
ion
Male 46
Septembe
r 182017
February
212019
Chen
Changlai
Director
Dimiss
ion
Male 56
Septembe
r 182017
August
22019
Zhang
Xueqiu
Director
Dimiss
ion
Male 53
Septembe
r 182017
August 2
2019
Li Baobing Supervisor
Dimiss
ion
Male 45
June
282018
September
252019
Yang
Xuanxing
Deputy
GM
Dimiss
ion
Male 54
January
162014
October
302019
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
Zhou Xian Director Dimission February 212019 Job change
Chen Changlai Employee supervisor Dimission August 22019 Job change
Zhang Xueqiu Director Dimission August 22019 Job change
Wen Shufei Director Dimission September 252019 Job change
Li Baobing Supervisor Dimission September 252019 Job change
Yang Xuanxing Deputy GM Dimission October 302019 Pass away
III.Posts holding
Work Experience in the past five years of Directors supervisors and senior Executives in Current office
Mr. Wang Jin 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
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 Energy Group Co. Ltd. and concurrently
served as director of Guangdong Electric Power Development Co. Ltd.Mr. Rao Subo born in May 1964 is bachelor of Engineering of Chongqing University and graduate of the 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 Energy Group Co. Ltd. and director
of the Shajiao A Power Plant and party committee secretary Deputy chief engineer Secretary of the Safety
Supervision and Produce technology Dept Secretary of the Party Branch and Head of the Information Technology
Centre Preparatory team of Guangdong Energy Group.
Mr. Wen Lianhe 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 Energy 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 Energy Group.Mr. Chen Ze 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 Energy 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 Energy
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 Energy Group Co.Ltd. Minister of Strategy Development Department of Guangdong Energy Group Co. Ltd. Secretary of the Party
Branch and General Manager of Branch Company of Guangdong Yudean 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. Yan Ming born in October 1971 with a bachelor degree of Northeastern Electric Power University and is a
senior engineer. Currently he is the Minister of the Colligation and Management Department of Guangdong
Energy Group Co. Ltd. He used to be deputy minister of the operation department deputy minister of the fuel
department (presided over the overall work) minister of the production and operation department and deputy
general manager of Guangdong Honghaiwan Power Generation Co. Ltd. He had served as Deputy Minister of the
operation and management department of Guangdong Energy Group Co. Ltd and General Manager and Secretary
of the Party Branch of Guangdong Yudean Power Sales Co. Ltd.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 Minister of Finance Department and Secretary of the Party Branch of
Guangdong Energy Group Co. Ltd.He served as 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 and Deputy General Manager of Guangdong Yudean Finance
Co. Ltd. and had concurrently served as General Manager of Shenzhen Tianxin Insurance Brokers Co. Ltd.and
Vice Minister of Finance Department of Guangdong Energy Group Co. Ltd.Mr. Liang Peilu born in October 1964. graduated from correspondence course bachelor of engineering. Senior
engineer. He is currently the party secretary and director of Shajiao A Power Plant of Guangdong Electric Power
Development Co. Ltd. and the general manager and party branch secretary of Guangdong Yudean Binhaiwan
Energy Co. Ltd. Former positions include turbine maintenance director of Shajiao General Power Plant A
director of health and safety of Shajiao A Power Plant and deputy director of Shajiao A Power Plant.Mr. Mao Qinghan born in October 1974 Bachelor of Hunan University and Master of Engineering from South
China University of Technology. Engineer. He is currently the Executive Director of Guangzhou Development
Group Co. Ltd.He once served as the secretary and director of the party branch of Xicun Thermal Power Plant in
Guangzhou power plant the deputy general manager of Guangzhou Power Plant the secretary of the party branch
of Guangzhou Power Plant Co. Ltd. the secretary and general manager of the party branch of Guangzhou
Wanglong Thermal Power Co. Ltd. the safety director and general manager of the Health and Safety
Management Department of Guangzhou Development Group Co. Ltd. and the secretary and general manager of
the Party Committee of Guangzhou Development Power Group Co. Ltd.Mr. Sha Qilin born in October 1960. Master of Wuhan Institute of Technology. Associate Professor 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 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 Guangsheng Nonferrous Metals Co. Ltd. Guangzhou Grandbuy Co. Ltd. Guangzhou
Yuexiu Financial Holding Group Co. Ltd. Rongjie Co. Ltd. and 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 born in April 1970 PhD of economics of Sun Yat-sen University professor doctoral supervisor
Specially-appointed Professor of Pearl-river Scholar. Currently he serves as professor of Lingnan College of
Yat-sen University and Director of China Institute of Transformative and open Economy 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 Economist of the monetary policy committee of the people's bank of China
and the national bureau of statistics and independent director of Guangdong Electric Power Development
Co.Ltd. Guangzhou Yuexiu Financial Holdings Group Co. Ltd. and Zhuhai Rural Commercial Bank External
director of Guangzhou Bus Group and Vice President of Lingnan College of Yat-sen University.Mr. Ma Xiaoqian born in March 1964 is Ph.D.of engineering thermophysics from South China University 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 deputy director of teaching
guiding committee of energy and power professional of high education of the Ministry of Education 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 born in February 1969. He is Master of rural finance from Northwest Agricultural University.He is currently Assistant President of Lian Chu Securities. He previously served as a director of the Guotai Junan
M&A business an executive director of Shanghai Longrui Investment Consultants Company and the general
manager of the Great Wall Securities M&A Department.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 Energy Group Co. Deputy Minister of Legal Affairs Deputy
Minister of Capital Operations . The head of the work department of the audit and supervisory board and the
secretary of the Party branch.Ms. Shi Yan born in December 1977 Master graduate from Sun Yat-sen University Senior accountant. Currently
she is the manager of the comprehensive branch of the Finance Department of Guangdong Energy Group Co. Ltd.Previously she was the special manager director and general manager of the Cost Accounting Division of the
Finance Department of Guangdong Energy Group Co. Ltd.
Mr. Zhu Weiping born in May 1957. Doctor of Economics Jinan University. He is currently a vice president of
the China Industrial Economics Society executive vice president of the Guangdong Economic Association
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. Tang Yongguang born in December 1962. Bachelor of Engineering Chongqing University. Senior engineer.He is currently the Deputy General Manager of Guangdong Electric Power Development Co. Ltd. He used to be a
boiler technician in Huangpu power plant a senior engineer in the biotechnology department of Guangdong
power industry bureau a manager of the safety supervision division of the biotechnology safety supervision
department of Guangdong Energy Group Co. Ltd. a member of the party committee and deputy manager of
Shaoguan power plant a member of the party committee and deputy manager of Shajiao C power plant a deputy
director of the biotechnology safety supervision department of Guangdong Energy Group Co. Ltd. and a deputy
director of the safety supervision and Production Technology department of Guangdong Energy Group Co. Ltd.Ms. Liu Hui 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.
Vice chief engineer October 2005 Yes
Rao Subo
Guangdong Energy Group
Co. Ltd.
Director of security July 2018 Yes
Wen Lianhe
Guangdong Energy Group
Co. Ltd.
Vice chief engineer November 112010 Yes
Wen Lianhe
Guangdong Energy Group
Co. Ltd.
Minister of Management
and Secretary of the party
branch
April 2018 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.
Vice Chief Engineer
Minister of Strategic Dept
and Secretary of Party
Branch
April 2018 Yes
Yan Ming
Guangdong Energy Group
Co. Ltd.
Minister of the General
Department and secretary
of Party Branch
November 2018 Yes
Li Baobing
Guangdong Energy Group
Co. Ltd.
Minister of Finance and
secretary of Party Branch
September 2019 Yes
Zhang
Dewei
Guangdong Energy Group
Co. Ltd.
Director of the Audit Dept
and Secretary of the Party
Branch
June 2012 Yes
Zhang
Dewei
Guangdong Energy Group
Co. Ltd.
Secretary of the discipline
Inspection Commission
September 2017 Yes
Zhang
Dewei
Guangdong Energy Group
Co. Ltd.
Chief auditor July 2018 Yes
Shi Yan
Guangdong Energy Group
Co. Ltd.
Manager of Finance
Integrated division
January 2011 Yes
Mao
Qinghan
Guangzhou Development
Group Co. Ltd.
Executive Director December 2017 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 March 2019 No
Wang Jin
Guangdong Yuehua Power Generation
Co.Ltd.
Board chairman April 2019 No
Wang Jin
Guangdong Red Bay Power
Generation Co. Ltd.
Board chairman September No
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
Wang Jin
Guizhou Yueqian Electric Power Co.Ltd.
Board chairman May 2019 No
Rao Subo
Guangdong Shaoguan Yuejiang
Power Generation Co. Ltd.
Board chairman October 2018 No
Rao Subo
Yudean Yunhe Power Generation Co.Ltd.
Board chairman June 2018 No
Rao Subo North Union Electric Power Co. Ltd. Director May 2018 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 January 2020 No
Wen Lianhe
Guangzhou Electric Power Trading
Center Co. Ltd.
Director April 2019 No
Wen Shufei
Guangdong Zhuhai Jinwan 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
Chen Ze
Guangdong Yudean Shipping Co.Ltd.
Board chairman August 2016 No
Chen Ze
Guangdong Yudean Jinghai Power
Generation Co. Ltd.
Board chairman March 2017 No
Chen Ze
Guangdong Yudean Faneng
Investment Co. Ltd.
Executive director April 2017 No
Chen Ze
Tianshengqiao First Class
Hydropower Development Co. Ltd.
Director October 2016 No
Chen Ze Guangdong Yangjiang Port Co. Ltd. Board chairman November 2019 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 Huaqing 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.
Board chairman 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
Zheng
Yunpeng
Guangdong Yudean Binhaiwan
Energy Co. Ltd.
Executive director May 2019 No
Zheng
Yunpeng
Guangdong Yudean Dayawan
Integrated Energy Co. Ltd（Tentatively）
Board chairman January 2020 No
Yan Ming
Guangdong Yudean Property
Investment Co. Ltd.
Executive director December 2018 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 Energy Group .Guizhou Co. Ltd. Director May 2019 No
Li Baobing
Guangdong Yudean Finance Lease
Co. Ltd.
Board chairman September 2019 No
Liang Peilu
Guangdong Yudean Humen Power
Generation Co. Ltd.
Board chairman
General Manager
April 2019 No
Liang Peilu
Guangdong Yudean Binhaiwan
Energy Co. ltd.
General Manager May 2019 No
Mao
Qinghan
Guangzhou Development Electric
Power Enterprise Co. Ltd.
Executive director April 2018 No
Mao
Qinghan
Guangzhou Guangneng Investment
Co. Ltd.
Executive director April 2018 No
Sha Qilin Guangdong Nanguo Desai Law firm A lawyerPartner March 2007 Yes
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 Grandbuy Co. Ltd.Independent
Director
September 2016 Yes
Shen
Hongtao
Rongjie Co. Ltd.Independent
Director
October 2017 Yes
Wang Xi
Lingnan College Sun Yat-sen
University
Professor July 2006 Yes
Wang Xi Palm Graden Co. Ltd.Independent
Director
May 2014 Yes
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
Lian Chu Securities Assistant President September 2019 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 2017 No
Zhang
Dewei
Yangjiang Nuclear Power Co. ltd.
Chairman of the
Supervisory
Committee
December 2017 No
Zhang
Dewei
Taishan Nuclear Power IndustryInvestment Co. Ltd.（Taishan NuclearPower Joint Venture Co. Ltd.）
Supervisor June 2016 No
Shi Yan
Guangdong Yudean Holdings Western
Investment Co. Ltd.Supervisor October 2018 No
Shi Yan
Guangdong Yudean Huadu Natural
Gas Thermal Power Co. Ltd.Supervisor March 2018 No
Shi Yan Zhanjiang Electric Power Co. Ltd.
Convenor of the
Board of
Supervisors
December 2019 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 Head of
Dept
January 2013 Yes
Li Qing
Guangdong Yudean Bohe Coal Power
Co.Ltd.
Chairman of the
Supervisory
Committee
December 2018 No
Li Qing Lincang Yudean Energy Co. Ltd. Supervisor January 2015 No
Li Qing
South Offshore wind power Union
Development Co. Ltd
Supervisor November 2015 No
Li Qing
Guangdong Yudean Yongan Natural
Gas thermal Power Co. Ltd.
Chairman of the
Supervisory
Committee
March 2019 No
Li Qing
Yunnan Nengtou Weixin Energy Co.Ltd.
Convenor of the
Board of
Supervisors
March 2019 No
Tang
Yongguang
Guangdong Electric Industry Fuel
Co. Ltd.
Director March 2020 No
Tang
Yongguang
Zhanjiang Electric Power Co. Ltd. Director December 2019 No
Tang
Yongguang
Zhanjiang Zhongyue Energy Co. Ltd. Board chairman December 2019 No
Tang
Yongguang
Guangdong Yudean Jinghai Power
Generation Co. Ltd.
Director April 2017 No
Tang
Yongguang
Guangdong Red Way Power
Generation Co. Ltd.Vice Board
chairman
December 2019 No
Tang
Yongguang
Guangdong Huizhou Pinghai Power
Generation Co. Ltd.Vice Board
chairman
December 2019 No
Tang
Yongguang
Guangdong Yudean Holdings Western
Investment Co. Ltd.
Director October 2018 No
Tang
Yongguang
Guangdong Shaoguan Yuejiang
Power Generation Co. ltd.Vice Board
chairman
October 2018 No
Tang
Yongguang
Guangdong Yudean Xinhui Power
Generation Co. Ltd.
Director December 2014 No
Tang
Yongguang
Guangdong Yudean Zhongshan
Thermal Power Plant Co. Ltd.
Director December 2017 No
Tang
Yongguang
Guangdong Yudean Huaqing Coal
Gas Union cycle Power Generation
Co. Ltd.
Director October 2011 No
Liu Hui
Guangdong Yudean Shipping Co.Ltd.
Director June 2017 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
October 2018 No
Liu Hui
Guangdong Yudean Huadu Natural
Gas Thermal Power Co. Ltd.
Director March 2018 No
Liu Hui
Yunnan Yuntou Weixin Energy Co.Ltd.Vice Board
chairman
March 2019 No
Liu Hui
Guangdong Guohua Yudean Taishan
Power Generation Co. Ltd.Supervisor December 2018 No
Liu Hui Yunnan Yuntou Weixin Coal Co. Ltd.Vice Board
chairman
March 2019 No
Liu Hui
Shenzhen Guangming Factory Site
Alternative Power Project Company
Executive director January 2020 No
Liu Hui Shanxi Yudean Energy Co. Ltd.Vice Board
chairman
December 2018 No
Liu Hui
Guangdong Yudean Yongan Natural
Gas Thermal Power Co. Ltd.
Board chairman March 2019 No
Liu Wei
Guangdong Wind Power Generation
Co. Ltd.
Director December 2017 No
Liu Wei
Guangdong Energy Group Finance
Co. Ltd.
Director March 2019 No
Liu Wei
Guangdong Huizhou Natural Gas
Power Generation Co. Ltd.
Director March 2018 No
Liu Wei
Guangdong Yudean Jinghai Power
Generation Co. Ltd.
Director June 2017 No
Liu Wei
Guangdong Red Bay Power
Generation Co. Ltd.
Director December 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.
Convener of the
Board of
Supervisors
May 2007 No
Liu Wei Shenzhen Capital Group Co. Ltd. Supervisor October 2019 No
Liu Wei
Guangdong Yuejia Electric Power
Co. Ltd.
Vice Board
chairman
January 2019 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 b
efore tax was total RMB 5.9127 million .Remuneration 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
receives at the
end of the
reporting
period
Wang Jin
Board
chairman
Male 56 In office 70.17 No
Rao Subo Director Male 55 In office Yes
Wen Lianhe Director Male 51 In office Yes
Chen Ze Director Male 50 In office Yes
Li Fangji Director Male 52 In office Yes
Zheng Yunpeng
Director
General
Manager
Male 51 In office 71.17 No
Yan Ming Director Male 48 In office Yes
Li Bobing Director Male 45 In office Yes
Liang Peilu Director Male 55 In office 98.09 No
Mao Qinghan Director Male 45 In office Yes
Sha Qilin
Independent
director
Male 59 In office 6.39 No
Shen Hongtao
Independent
director
Female 52 In office 5.85 No
Wang Xi
Independent
director
Male 49 In office 6.39 No
Ma Xiaoqian
Independent
director
Male 55 In office 6.39 No
Yin Zhongyu
Independent
director
Male 50 In office 3.71 No
Zhang Dewei
Chairman of
the Supervisory
Committee
Male 58 In office Yes
Shi Yan Supervisor Female 42 In office Yes
Zhu Weiping
Independent
Supervisor
Male 62 In office 3.21 No
Jiang Jinsuo
Independent
Supervisor
Male 51 In office 4.63 No
Lin Weifeng
Employee
supervisor
Male 51 In office 28.07 No
Li Qing
Employee
supervisor
Male 42 In office 35.26 No
Tang
Yongguang
Deputy GM Male 54 In office 4.97 No
Liu Hui
Deputy General
manager
Female 54 In office 70.61 No
Liu Wei
Deputy General
manager
Finance
Manager
Board secretary
Male 40 In office 69.37 No
Wen Shufei Director Female 55 Dimission Yes
Zhou Xian Director Male 46 Dimission Yes
Chen Changlai Director Male 56 Dimission 43.08 No
Zhang Xueqiu Director Male 53 Dimission Yes
Li Bobing Supervisor Male 45 Dimission Yes
Yang Xuanxing Deputy GM Male 54 Dimission 63.91 No
Total -- -- -- -- 591.27 --
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） 1092
Number of in-service staff of the main subsidiaries（person） 5596
Total number of the in-service staff（person） 6688
Total number of staff receiving remuneration in the current
period（person）
6709
The number of the parent company and the main subsidiary’s
retired staffs who need to bear the cost（person）
3623
Professional
Classified according by Professions Number of persons（person）
Production 4394
Sales 103
Technical 995
Financial 167
Administrative 1029
Total 6688
Education
Classified according by education background Number of persons（person）
Doctor 0
Master 201
Universities 3221
Colleges 1860
Technical secondary school 251
High school and Below 1155
Total 6688
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
X. 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 andFollow-up Program
Horizontal
competitions
Guangdong
Energy Group
Co. Ltd.
Local SASAC
Energy Group was
established when
Guangdong Provincial
Government took the
lead in the
implementation of the“plant and networkseparation” power
system reform in China
and was separated and
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
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
formed from
Guangdong Provincial
Power Group
Corporation. It is the
largest and most
powerful power
generation enterprise in
Guangdong Province.Yudean Power is the
only listed company
under the Energy Group
and is engaged in power
production business. At
present Energy Group
still has some remaining
power generation assets
that have not been
included in Yudean
Power temporarily.
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.
Announcement of
Related Transactions on
the "Equity Custody
Agreement" signed with
Guangdong Energy
Group Co. Ltd. (public
notice No.: 2018-04). In
order to avoid
competition in the same
industry and to fulfill
the relevant horizontal
competition
commitments Energy
Group has signed the
Entrusted Management
Agreement with the
company and all the
shareholders' rights
other than the
ownership income and
disposal rights of the
company that
temporarily fails to meet
the listing conditions in
the company's custody
area of the Energy
Group are escrowed to
our company.
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 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
2019
Provisional
shareholders’
General Meeting
72.69%
February
212019
February
222019
Name of
Announcement :Announcement of
Resolution of the first Provisional
shareholders’ general meeting in
2019，Announcement
No.:2019-10
Published in China Securities Dail
y Securities Times and http//.ww
w.cninfo.com.cn
2018 Shareholders’
general meeting
Annual General
Meeting
72.80% May 212019 May 222019
Name of
Announcement :Announcement of
Resolution of 2018 shareholders’
general meeting ，AnnouncementNo.:2019-25.Published in China Securities Dail
y Securities Times and http//.ww
w.cninfo.com.cn
The Second
provisional
shareholders’
General meeting in
2019
Provisional
shareholders’
General Meeting
72.63%
August
22019
August
32019
Name of
Announcement :Announcement of
Resolution of the Second
Provisional shareholders’ general
meeting in 2019，Announcement
No.:2019-35
Published in China Securities Dail
y Securities Times and http//.ww
w.cninfo.com.cn
The Third
provisional
shareholders’
General meeting in
2019
Provisional
shareholders’
General Meeting
72.55%
September
192019
September
202019
Name of
Announcement :Announcement of
Resolution of the Third
Provisional shareholders’ general
meeting in 2019，Announcement
No.:2019-47
Published in China Securities Dail
y Securities Times and http//.ww
w.cninfo.com.cn
The Fourth
provisional
shareholders’
General meeting in
2019
Provisional
shareholders’
General Meeting
72.71%
November
192019
November
202019
Name of
Announcement :Announcement of
Resolution of the Fourth
Provisional shareholders’ general
meeting in 2019，Announcement
No.:2019-57
Published in China Securities Dail
y Securities Times and http//.ww
w.cninfo.com.cn
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□Applicable √Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors at board meetings and shareholders’ general meeting
The attending of independent directors
Independent
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
attendin
g the
AGM
Sha Qilin 9 3 6 0 0 No 5
Shen Hongtao 9 3 6 0 0 No 4
Wang Xi 9 3 6 0 0 No 5
Ma Xiaoqian 9 2 6 1 0 No 5
Yin Zhongyu 9 2 6 1 0 No 2
Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
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 2019 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 2 meetings to review and form review opinions on the Company's 2018 Annual
Report 2018 Internal Control Evaluation Report 2018 Comprehensive Risk Management Report 2019 Audit
Institution Hiring Provision for Impairment of Assets 2019 Semi-Annual Report 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 second meeting on March 20 2019 reviewed and adopted
the “Proposal on Illustration of Budget Implementation in 2018 and Budget Preparation in 2019”.
4.The Nomination Committee of the Board of Directors held a total of 4 meetings. It reviewed the Proposal on
Recommending Yan Ming as a Company Director Candidate the Proposal on Recommending Mao Qinghan as a
Company Director Candidate the Proposal on Recommending Li Baobing as a Company Director Candidate and
the Proposal on Recommending Tang Yongguang as a Company Deputy General Manager Candidate by means of
correspondence 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 182020
Disclosure index of appraisal report on
internal control
Juchao Website:（http://www.cninfo.com.cn） Selfevaluation report of internal
control in 2019
Proportion of total unit assets covered by
appraisal in the total assets of the
consolidated financial statements of the
company
99 %
Proportion of total unit incomes covered
by appraisal in the total business
incomes of the consolidated financial
statements of the company
100 %
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 inner control of
financial report should be considered as
“significant deficiency” if the following
circumstances (including but not limited to)
occurred:① the ineffective environmental
control;② irregularities appearing between
company directors supervisors and senior
executives;③ serious mistakes in the financial
statements of the current period found by external
audit but not the inner control in the process of
operating;④ ineffective supervision of inner
control from directorate and inner audit
institution. Ⅱ the inner control of financial report
should be considered as “serious deficiency” if the
following circumstances occurred:① accounting
policy chosen and applied is not based on the
GAAP;② anti-irregularity procedure and control
measures are not established;③ very few relative
control measures are established or implemented
in terms of the accounting treatment related to
unconventional or special transaction;④ one or
more deficiencies exist in the control process of
final financial report and the authenticity
accuracy and integrity of establishment can not be
assured reasonably. Ⅲ common deficiencymeans apart from the above “significantdeficiency” and “serious deficiency” otherdeficiencies 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
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.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.
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 2019 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 182020
Internal audit report’s opinion Juchao Website: （http://www.cninfo.com.cn）2019Audit report of internal control
Type of audit report on internal
control Unqualified auditor’s report
Whether there is significant
defect in 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
XI. 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 but not 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
On March 18 2019 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 15
2019.
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. During the reporting period the conditions for the implementation of
the relevant provisions did not apply.
1. On January 29 2018 the Company disclosed the Announcement of Guangdong Electric
Power Development Co. Ltd. on Waiving the Exercise of the "12 Yudean Bond" Issuer's
Redemption Option (Announcement No.: 2018-06) and decided to waive the exercise of the
"12 Yudean Bond" issuer's redemption option i.e. the "12 Yudean Bond" will continue to exist
in the duration.
2. On January 29 2018 January 30 2018 and January 31 2018 the company respectively
issued the First Prompt Announcement of Guangdong Electric Power Development Co. Ltd. on
the Measures for the Implementation of "12 Yudean Bonds" with No Increase in Face Interest
Rate and Bond Holders Selling Back and Measures for Bond Holders to Sell Back
(Announcement No.: 2018-07) the Second Prompt Notice of Guangdong Electric Power
Development Co. Ltd. on the Implementation Measures for No Increase in the Face Rate of "12
Yudean Bonds" and for Bond Holders to Sell Back (Announcement No.: 2018-08) and the Third
Prompt Notice of Guangdong Electric Power Development Co. Ltd. on the Implementation
Measures for No Increase in the Face Rate of "12 Yudean Bonds" and for Bond Holders to Sell
Back (Announcement No.: 2018-10) and has chosen not to increase the face rate i.e. the face
rate will remain unchanged at 4.95% for 2 years after the duration of the current bonds.
3. On March 17 2018 the Company disclosed the Announcement of Guangdong Electric Power
Development Co. Ltd. on the Sale Results of Corporate Bonds "12 Yudean Bonds"
(Announcement No.: 2018-14). According to the bond resale declaration data provided by
Shenzhen Branch of China Securities Depository and Clearing Co. Ltd. the number of "12
Yudean Bonds" resold was 11596935 the amount of resale was 1217087933.25 yuan
(including interest) and the remaining number for custody was 403065. On March 16 2018
the company paid the principal and interest of some bonds sold back by the "12 Yudean Bonds"
in full to the bank account designated by Shenzhen Branch of China Securities Depository and
Clearing Co. Ltd. and transferred to the investor's capital account on March 19 2018.
II. 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
YPilan
Kou
Zhibo
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 change performing
procedures relevant influence on
investorsetc(If applicable).Not applicable
III. 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
IV.Corporate bond rating information
On May 14 2019 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(2019).
V.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). 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.VI.During the reporting period the bondholder meeting
During the reporting period the company did not hold bondholders meeting.
VII.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 2018) on May 9 2019 and the report was disclosed on
the cninfo website on May 10 2019 by the company.VIII.During the reporting period the company's major accounting data and financial indicators for last 2
years
In RMB10000
Items 2019 2018
At the same time rate of
change
Earnings before interest tax
depreciation and amortization
755964.55 599620.49 26.07%
Current ratio 57.45% 62.89% -5.44%
Debt ratio 54.70% 57.02% -2.32%
Quick ratio 43.44% 47.35% -3.91%
EBITDA/Total debts 18.30% 14.34% 3.96%
Interest coverage ratio 2.76 1.86 48.39%
Cash interest coverage ratio 6.91 5.31 30.13%
EBITDA interest coverage
ratio
5.24 4.13 26.88%
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
1. Interest protection multiple: This year's increase in income decrease in cost decrease in the scale of
interest-bearing liabilities and decrease in financing costs have led to a large year-on-year increase.
2. Cash interest protection multiple: This year's increase in electricity tariffs decrease in fuel costs decrease in
interest-bearing liabilities and decrease in financing costs have led to a larger year-on-year increase.IX. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the
issuance of the bonds during the reporting period
1.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 610652055 yuan;
2.On December 27 2018 the company issued 500000000 yuan of phase IV ultra short-term financing bonds
with a term of 152 days. During the reporting period the payment of the principal and interest was 506413151
yuan;
3.On February 18 2019 the company issued 600000000 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 608225753 yuan;
4.On May 24 2019 the company issued 900000000 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 608085246 yuan;
5.On August 14 2019 the company issued 600000000 yuan of phase III 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;
6.On November 15 2019 the company issued 1000000000 yuan of phase IV 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;
7. 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 1995171.75.
8. 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: 33520000 yuan.
9. 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 24718273.71.X.Information about the bank credit obtaining and use as well as repayment of the bank loans during the
reporting period
In the report period the company signed an unconditional available bank amount limit of about RMB 48.044
billion of which the used amount limit was RMB 16.141 billion thus the remaining available bank amount limit
was about RMB 31.903 billion. In this year the company repaid bank loans of about RMB 13.968 billion and the
balance of bank loans was RMB 22.491 billion.XI. 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 “12 Yudean Bonds” issuance. During the reporting period the company strictly fulfilled the
above commitments. On March 18 2019 and paid the bond interest 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 15 2019.XI.Major events occurring in the period of report
Nil
XII.Whether there is a guarantor corporate bonds
□ Yes √No
XII.. Financial Report
I. Audit report
Type of audit opinion Unqualified audit opinion
Date for signing the auditor’s report April 17 2020
Type of audit opinion
PWC Certified Public Accountants (special general
partnership)
Date for signing the auditor’s report PWC ZTSZD No.(2020) 10033
Type of audit opinion Wang Bin Li Yanhua
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
FINANCIAL STATEMENTS AND
AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
[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 2019
[English translation for reference only]
Content Page
Auditor’s Report 105-112
Financial statements for the year ended 31 December 2019
Consolidated and company balance sheets 113-116
Consolidated and company income statements 117-118
Consolidated and company cash flow statements 119-121
Consolidated statement of changes in owners’ equity 122-123
Company statement of changes in owners’ equity 124-125
Notes to the financial statements 126-268
Supplementary Information of financial statements 269-272
[English Translation for Reference Only]
Auditor’s Report
PwC ZT Shen Zi (2020) No. 10033
(Page 1 of 8)
To the shareholders of Guangdong Electric Power Development Co. Ltd.Opinion
What we have audited
We have audited the accompanying financial statements of Guangdong Electric Power
Development Co. Ltd. (hereinafter “Guangdong Electric Power”) which comprise:
? the consolidated and company balance sheets as at 31 December 2019;
? 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
2019 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 Matter
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.Key audit matters identified in our audit are summarised as follows:
? Impairment of power related fixed assets and long-term equity investments
? Recognition of loss for investment in an associate due to provision for impairment of
long-term assets
? Recognition of deferred tax assets related to deductible losses
PwC ZT Shen Zi (2020) No. 10033
(Page 2 of 8)
Key Audit Matters (Cont’d)
Key Audit Matter How our audit addressed the Key Audit
Matter
(1) Impairment of power related fixed assets and
long-term equity investments
Refer to Note 2(27)(b)(i) Note 4(11)(b)(iii) and
Note 4(13)(a)(iii) to the financial statements
(Note 7).
Certain subsidiaries and an associate Weixin
Yuntou Yudean Zhaxi Energy Co. Ltd.(hereinafter referred to as “Weixin Yuntou”) of
Guangdong Electric Power have been
experiencing continuous operating losses in
recent years. Taking into account possible future
risks such as the instability of electricity
demand the unstable price of coal used in power
generation the macro-economy and other risk
factors management continuously observed the
impairment of the aforesaid subsidiaries' asset
groups of generator units (mainly including fixed
assets) and the long-term equity investments of
the aforesaid associate.
As at 31 December 2019 management conducted
impairment tests for the aforesaid subsidiaries
and associate and made a provision for
impairment at the excess of the carrying amount
of asset groups of generator units and long-term
equity investments over their recoverable
amount. The recoverable amount of the asset
groups was the higher of the fair value of the
asset groups and the long-term equity
investments 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 including the discount rate the
estimated on-grid electricity price and its growth
rate the estimated electricity sales and its
growth rate the estimated price of coal used in
power generation the estimated asset disposal
price and the estimated disposal costs.Our audit procedures for the impairment of
power related fixed assets and long-term equity
investments mainly include:
? We understood and evaluated the internal control
relevant to test the impairment of fixed assets and
long-term equity investments and tested the
operating effectiveness of key control;
? We involved internal valuers to review and
analyse the appropriateness of the method
applied by management for the impairment test;
? Based on our understanding of the businesses of
the subsidiaries and associate as well as the
industry in which they operate we compared with
and analysed the assumptions adopted by
management including the discount rate the
estimated on-grid price and its growth rate the
estimated electricity sales and its growth rate the
estimated price of coal used in power generation
the estimated asset disposal price and the
estimated disposal costs; we evaluated the
reasonableness of the assumptions on fair value
less disposal costs and the present value of the
estimated future cash flows:
- For the discount rate we involved internal
valuers to evaluate the appropriateness in
combination with industry situation;
- For the estimated on-grid electricity price and its
growth rate we compared historical growth rates
and industry data and considered market trend;
- For the estimated electricity sales its growth
rate and the estimated price of coal used in
power generation we have compared historical
data approved budgets and business plans and
checked the corresponding supporting
documents;
PwC ZT Shen Zi (2020) No. 10033
(Page 3 of 8)
Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d) How our audit addressed the Key Audit
Matter (Cont’d)
(i) Impairment of power related fixed assets and
long-term equity investments (Cont’d)
As the carrying amounts of fixed assets and
long-term equity investments with indication of
impairment are significant to the consolidated
financial statements of Guangdong Electric
Power and the impairment test of asset groups
of generator units and long-term equity
investments involves management’s significant
estimates and judgements impairment of power
related fixed assets and long-term equity
investments is identified as a key audit matter.Our audit procedures for the impairment of
power related fixed assets and long-term equity
investments mainly include (Cont’d):
? We checked the input data and formulas used in
the calculation of the present value of estimated
future cash flows and evaluated the mathematic
accuracy;
? We conducted sensitivity analysis on the discount
rate and other key assumptions applied by
management and evaluated how the changes in
key assumptions (individually or in aggregate)
will give rise to different results to further
evaluate if there’s any indication of management
bias in selecting parameters of key assumptions.
Based on the results of the aforesaid work we found
that management's judgements and estimates on the
impairment of fixed assets and long-term equity
investments are supported by appropriate evidence.(ii) Recognition of loss for investment in an
associate due to provision for impairment of
long-term assets
Refer to Note 2(27)(b)(i) Note 4(11)(b)(iii) to the
financial statements.
In 2019 Guangdong Yudean Shipping Co. Ltd.
(hereinafter referred to as “Yudean Shipping”)
associate of Guangdong Electric Power has
delivered a weeker performance than expected
due to the sluggish international shipping
market decreasing shipping prices and rising
operating costs. Yudean Shipping resulted in a
loss of RMB 1360556144 with the provision for
asset impairment. Therefore Guangdong
Electric Power recognised the loss for investment
in Yudean Shipping amounting to RMB
476194650 under equity method. As at 31
December 2019 the carrying amount of the
long-term equity investment held by Guangdong
Electric Power in Yudean Shipping amounted to
RMB 448869593.
Our audit procedures for the recognition of loss for
investment in an associate due to provision for
impairment of long-term assets mainly include:
? We interviewed the management of Yudean
Shipping to understand the current year's
operating results and the reasons for the loss
related to impairment provision;
? We obtained the report of Yudean Shipping on
the evaluation of impairment of its main asset
groups and involved an internal valuer to review
and analyse the reasonableness of its testing
method;
PwC ZT Shen Zi (2020) No. 10033
(Page 4 of 8)
Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d) How our audit addressed the Key Audit
Matter (Cont’d)
(ii) Recognition of loss for investment in an
associate due to provision for impairment of
long-term assets (Cont’d)
Given the recognition of loss for investment in
Yudean Shipping under equity method in 2019
and the importance of the carrying amount of
this long-term equity investment to the
consolidated financial statements of Guangdong
Electric Power the recognition of loss for
investment in an associate due to provision for
impairment of long-term assets is identified as a
key audit matter.Our audit procedures for the recognition of loss
for investment in an associate due to provision
for impairment of long-term assets mainly
include (Cont’d):
? Based on our understanding of the businesses of
Yudean Shipping and the industry in which it
operates we compared with and analysed the
assumptions adopted by management including
the discount rate the estimated shipping price
and its growth rate the estimated shipping
capacity and its growth rate and the estimated
operating costs; we evaluated the reasonableness
of the assumptions adopted by management in
the calculations of the fair value less disposal
costs and the present value of the estimated
future cash flows:
- For the discount rate we involved internal
valuers to evaluate its appropriateness in
combination with industry situation;
- For future shipping price and its growth rate we
compared it to historical growth rates and took
the current market trend into consideration;
- For the estimated shipping capacity and its
growth rate the estimated operating costs etc.we compared them to the historical data the
approved budget and its business plan and
checked the corresponding supporting
documents;
? We recalculated the investment loss in Yudean
Shipping as recognised by management under
equity method and evaluated the accuracy of the
calculation results;
? We checked management's presentation and
disclosure of long-term equity investments and
investment losses in the financial statements;
Based on the results of the above work we
found that the management's judgement on the
recognition of loss for investment in an
associate due to provision for impairment of
long-term assets is supported by appropriate
evidence.
PwC ZT Shen Zi (2020) No. 10033
(Page 5 of 8)
Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d) How our audit addressed the Key Audit
Matter (Cont’d)
(iii) Recognition of deferred tax assets related to
deductible losses
Refer to Note 2(27)(b)(v) and Note 4(18) to the
financial statements.
As at 31 December 2019 Guangdong Electric
Power recognised the corresponding deferred tax
assets for the deductible losses incurred by
individual subsidiaries at a total of RMB
171727895.
According to the financial forecast of the
aforesaid subsidiaries in future periods
management recognises deferred tax assets to
the extent that the aforesaid subsidiaries are
likely to obtain future taxable income to offset
the deductible losses. The financial forecast of
the aforesaid subsidiaries in future periods
involves significant management judgements
including estimated electricity sales estimated
on-grid electricity price estimated price of coal
used in power generation and other operating
expenses.
As the deferred tax assets related to deductible losses
are significant to the consolidated financial statements
of Guangdong Electric Power and the financial
forecast for future periods involves management’s
significant estimates and judgements the recognition
of the deferred tax assets related to tax losses is
identified as a key audit matter.Our audit procedures for the recognition of
deferred tax assets related to deductible losses
mainly include:
? We obtained management's calculation sheet for
the financial forecast in future periods checked
the input data and formulas used in the
calculation and evaluated the mathematic
accuracy;
? We obtained supporting documents such as the
income tax settlement report tax returns and
accounting records of the aforesaid subsidiaries
and reviewed for the existence of deductible
losses and the accuracy of the amount and
period;
? Based on our understanding of the businesses of
the aforesaid subsidiaries and the industry in
which they operate we evaluated the key
assumptions used by management to calculate
the expected taxable income for future periods
including the reasonableness of assumptions on
estimated electricity sales estimated on-grid
electricity price estimated fuel price and other
operating expenses;
? We compared the taxable income estimated by
management last year with the actual taxable
income for the current year to access the
historical accuracy of management’s forecast;
? We reviewed whether the deferred tax assets
were recognised to the extent that the taxable
income was likely to be obtained in the future to
offset deductible losses and deductible temporary
differences.
Based on the results of the above work we found that
management's estimates regarding the recognition of
deferred tax assets related to deductible losses were
supported by appropriate evidence.
PwC ZT Shen Zi (2020) No. 10033
(Page 6 of 8)
Other Information
Management of Guangdong Electric Power is responsible for the other information. The other
information comprises all of the information included in 2019 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 (2020) No. 10033
(Page 7 of 8)
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 (including the disclosures) structure and content of the
financial statements 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 (2020) No. 10033
(Page 8 of 8)
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
17 April 2020
Signing CPA
Signing CPA
________________________
Wang Bin
(Engagement Partner)
________________________
Li Yanhua
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
ASSETS Note 31 December 2019 31 December 2018
(Restated)
Current assets
Cash at bank and on hand 4(1) 5081641969 5574382892
Accounts receivable 4(2) 3197690464 3358331949
Advances to suppliers 4(3) 605314333 906261046
Other receivables 4(4) 272801588 222976826
Inventories 4(5) 1817059269 1481817270
Current portion of non-current assets 4(6) 28865131 -
Other current assets 4(7) 305595567 617853476
Total current assets 11308968321 12161623459
Non-current assets
Available-for-sale financial assets 4(8) - 1565806331
Long-term receivables 4(10) 65856346 89762071
Long-term equity investments 4(11) 6455784562 6395134754
Investments in other equity instruments 4(9) 3142371373 -
Investment properties 4(12) 52093631 10810722
Fixed assets 4(13) 38555718718 41157594848
Construction in progress 4(14) 10882003846 7740754343
Intangible assets 4(15) 1787738640 1863588771
Goodwill 4(16) 2449886 2449886
Long-term prepaid expenses 4(17) 19473586 22089179
Deferred tax assets 4(18) 445709226 448431684
Other non-current assets 4(19) 2753858988 1871616258
Total non-current assets 64163058802 61168038847
TOTAL ASSETS 75472027123 73329662306
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND OWNERS' EQUITY Note 31 December 2019 31 December 2018
(Restated)
Current liabilities
Short-term borrowings 4(21) 5904132791 7526000000
Notes payable 4(22) 1364236650 941161107
Accounts payable 4(23) 2465154162 2196600415
Advances from customers 432714 343894
Employee benefits payable 4(24) 242510538 235741179
Taxes payable 4(25) 571377151 397001706
Other payables 4(26) 4042117097 4152518495
Current portion of non-current liabilities 4(27) 3182980482 2779347654
Other current liabilities 4(28) 1912282192 1107904110
Total current liabilities 19685223777 19336618560
Non-current liabilities
Long-term borrowings 4(29) 16587103380 18802292664
Debentures payable 4(30) 1496631799 838326742
Long-term payables 4(31) 2485346245 2311513249
Deferred income 4(32) 139256513 133043646
Long-term employee benefits payable 4(33) 134988860 122913388
Deferred tax liabilities 4(18) 537385614 100726841
Other non-current liabilities 4(34) 216405569 166405569
Total non-current liabilities 21597117980 22475222099
Total liabilities 41282341757 41811840659
Owners' equity
Share capital 4(35) 5250283986 5250283986
Capital surplus 4(36) 5096918174 5102846886
Other comprehensive income 4(37) 1676143044 550010133
Surplus reserve 4(38) 8245767593 7834155143
Undistributed profits 4(39) 5909128280 5490006140
Total equity attributable to shareholders
of the Company 26178241077 24227302288
Minority interests 8011444289 7290519359
Total owners' equity 34189685366 31517821647
TOTAL LIABILITIES AND OWNERS'
EQUITY 75472027123 73329662306
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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
ASSETS Note 31 December 2019 31 December 2018
(Restated)
Current assets
Cash at bank and on hand 224504289 385577463
Accounts receivable 15(1) 209249102 264537475
Advances to suppliers 43002000 44826500
Other receivables 15(2) 108149278 375296228
Inventories 151518056 187058140
Other current assets 1228009 199679
Total current assets 737650734 1257495485
Non-current assets
Available-for-sale financial assets - 1565806331
Long-term receivables 340000000 306460000
Long-term equity investments 15(3) 26514106513 24699820321
Investments in other equity
instruments 3142371373 -
Investment properties 7025443 7661041
Fixed assets 706435221 978022437
Construction in progress 14945019 9394075
Intangible assets 85839959 86681362
Other non-current assets 356004000 356004000
Total non-current assets 31166727528 28009849567
TOTAL ASSETS 31904378262 29267345052
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
COMPANY BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND OWNERS’
EQUITY Note 31 December 2019 31 December 2018
(Restated)
Current liabilities
Short-term borrowings 1401641708 1500000000
Accounts payable 156122676 223827319
Employee benefits payable 63480425 53346100
Taxes payable 44298675 48590195
Other payables 71126853 98528954
Current portion of non-current
liabilities 1554314700 -
Other current liabilities 1912282192 1107904110
Total current liabilities 5203267229 3032196678
Non-current liabilities
Long-term borrowings - 1500000000
Debentures payable 798857333 838326742
Long-term payables 3466237 4340898
Deferred income 39984807 48362943
Long-term employee benefits
payable 36570958 32170769
Deferred tax liabilities 535193684 99461621
Total non-current liabilities 1414073019 2522662973
Total liabilities 6617340248 5554859651
Owners' equity
Share capital 5250283986 5250283986
Capital surplus 5599980903 5605794601
Other comprehensive income 1676143044 550010133
Surplus reserve 8245767593 7834155143
Undistributed profits 4514862488 4472241538
Total owners' equity 25287038014 23712485401
TOTAL LIABILITIES AND
OWNERS' EQUITY 31904378262 29267345052
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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item Note 2019 2018
Revenue 4(40) 29360155150 27408514178
Less: Cost of sales 4(40) (24480703872) (24246716580)
Taxes and surcharges 4(41) (249721761) (237969926)
Selling and distribution expenses 4(42) (43788762) (25383861)
General and administrative expenses 4(43) (874640868) (688349938)
Research and development expenses 4(44) (9703602) (5043776)
Financial expenses 4(45) (1230315841) (1350485251)
Including: Interest expenses 1230637704 1310505491
Interest income 66836652 63471806
Add: Other income 4(46) 42071653 52750847
Investment income 4(47) 125541240 537702970
Including: Share of profit of associates and joint ventures 64909255 488203462
Reversal of credit impairment losses 4(48) 46348884 ——
Less: Asset impairment losses 4(49) (161731338) (251689797)
Add: Gains on disposal of assets 4(50) 20503424 1572097
Operating profit 2544014307 1194900963
Add: Non-operating income 4(51) 33236719 89456237
Less: Non-operating expenses 4(52) (32011127) (39159530)
Total profit 2545239899 1245197670
Less: Income tax expenses 4(53) (738065009) (335100233)
Net profit 1807174890 910097437
Classified by continuity of operations
Net profit from continuing operations 1807174890 910097437
Net profit from discontinued operations - -
Classified by ownership of the equity
Attributable to equity owners of the Company 1146767033 474461997
Minority interests 660407857 435635440
Other comprehensive income net of tax
Attributable to equity owners of the Company 4(37) 1126132911 413008610
Other comprehensive income that will not be reclassified to
profit or loss
Changes in fair value of investments in other equity
instruments 1123802101 -
Other comprehensive income that cannot be subsequently
transferred to profit or loss under the equity method 2110342 -
Other comprehensive income items which can be reclassified
subsequently to profit or loss
Gains or losses arising from changes in fair value of
available-for-sale financial assets - 413008610
Other comprehensive income that can be subsequently
transferred to profit or loss under the equity method 220468 -
Total comprehensive income 2933307801 1323106047
Attributable to shareholders of the Company 2272899944 887470607
Attributable to minority interests 660407857 435635440
Earnings per share
Basic earnings per share (RMB Yuan) 4(54) 0.22 0.09
Diluted earnings per share (RMB Yuan) 4(54) 0.22 0.09
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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item Note 2019 2018
Revenue 15(4) 2209770578 2287899600
Less: Cost of sales 15(4) (2092814820) (2133932886)
Taxes and surcharges (18252419) (17209260)
Selling and distribution expenses (2072707) (1589819)
General and administrative expenses (124632105) (117909783)
Research and development expenses (961443) (2624097)
Financial expenses (206287649) (205073468)
Including: Interest expenses 207829042 206465168
Interest income 5256138 6208285
Add: Other income 13186290 6712095
Investment income 15(5) 1074476943 1517144869
Including: Share of profit of associates
and joint ventures 58731138 484016449
Reversal of credit impairment losses 15(6) 48617737 -
Less: Asset impairment losses 15(7) (71317168) (154226974)
Add: Gains on disposal of assets - 442300
Operating profit 829713237 1179632577
Add: Non-operating income 4222347 4624375
Less: Non-operating expenses (2538378) (2837734)
Total profit 831397206 1181419218
Less: Income tax expenses (61131363) (5383646)
Net profit 770265843 1176035572
Classified by continuity of operations
Net profit from continuing operations 770265843 1176035572
Net profit from discontinued operations - -
Other comprehensive income net of tax 1126132911 413008610
Other comprehensive income that will not
be reclassified to profit or loss
Changes in fair value of investments in
other equity instruments 1123802101 -
Other comprehensive income that cannot
be subsequently transferred to profit
or loss under equity method 2110342 -
Other comprehensive income items which
will be reclassified subsequently to profit
or loss
Gains or losses arising from changes in
fair value of available-for-sale
financial assets - 413008610
Other comprehensive income that can be
subsequently transferred to profit or
loss under the equity method 220468 -
Total comprehensive income 1896398754 1589044182
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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item Note 2019 2018
Cash flows from operating activities
Cash received from sales of goods or
rendering of services 33450306969 31403772367
Refund of taxes and surcharges 13549274 10386840
Cash received relating to other operating
activities 4(56)(a) 195328767 138132774
Sub-total of cash inflows 33659185010 31552291981
Cash paid for goods and services (20616807058) (21570119475)
Cash paid to and on behalf of employees (1880454324) (1758740745)
Payments of taxes and surcharges (2097461395) (1640280936)
Cash paid relating to other operating
activities 4(56)(b) (791779121) (583214469)
Sub-total of cash outflows (25386501898) (25552355625)
Net cash flows from operating activities 4(57)(a) 8272683112 5999936356
Cash flows from investing activities
Cash received from disposal of investments 48647647 -
Cash received from returns on investments 239149433 335215628
Net cash received from disposal of fixed
assets intangible assets and other
long-term assets 73007745 56236928
Cash received relating to other investing
activities 4(56)(c) - 161670884
Sub-total of cash inflows 360804825 553123440
Cash paid to acquire fixed assets intangible
assets and other long-term assets (4818610061) (3699868129)
Cash paid to acquire investments (328162240) (163135200)
Sub-total of cash outflows (5146772301) (3863003329)
Net cash flows used in investing activities (4785967476) (3309879889)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED CASH FLOW STATEMENT (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item Note 2019 2018
Cash flows from financing activities
Cash received from capital contributions 526340000 1305125363
Including: Cash received from capital
contributions by minority interests
of subsidiaries 526340000 1155125363
Cash received from borrowings 14527600487 16491228390
Cash received relating to other financing
activities 4(56)(d) 100000000 900000000
Sub-total of cash inflows 15153940487 18696353753
Cash repayments of borrowings (16563416551) (17858853666)
Cash payments for interest expenses and
distribution of dividends or profits (2273764488) (2390857657)
Including: Cash payments for interest
expenses and distribution of dividends or
profits by minority interests of subsidiaries (415937941) (486302545)
Cash payments relating to other financing
activities 4(56)(e) (294216260) (562897014)
Sub-total of cash outflows (19131397299) (20812608337)
Net cash flows used in financing activities (3977456812) (2116254584)
Effect of foreign exchange rate changes on
cash and cash equivalents 253 519
Net (decrease)/increase in cash and cash
equivalents 4(57)(a) (490740923) 573802402
Add: Cash and cash equivalents at the
beginning of the year 5570382892 4996580490
Cash and cash equivalents at the end of the
year 4(57)(b) 5079641969 5570382892
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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item 2019 2018
Cash flows from operating activities
Cash received from sales of goods or rendering of
services 2565249720 2585719149
Cash received relating to other operating activities 13481620 20154657
Sub-total of cash inflows 2578731340 2605873806
Cash paid for goods and services (1804883929) (2032356406)
Cash paid to and on behalf of employees (321850372) (349508525)
Payments of taxes and surcharges (105174506) (82796385)
Cash paid relating to other operating activities (48028306) (61092274)
Sub-total of cash outflows (2279937113) (2525753590)
Net cash flows from operating activities 298794227 80120216
Cash flows from investing activities
Cash received from disposal of investments 383647647 187920000
Cash received from returns on investments 1188744289 1313192983
Net cash received from disposal of fixed assets
intangible assets and other long-term assets 3081801 1016545
Sub-total of cash inflows 1575473737 1502129528
Cash paid to acquire investments (2184276740) (1419713500)
Cash paid to acquire fixed assets intangible assets and
other long-term assets (31307163) (92602608)
Sub-total of cash outflows (2215583903) (1512316108)
Net cash flows used in investing activities (640110166) (10186580)
Cash flows from financing activities
Cash received from borrowings 4500000000 6729200000
Sub-total of cash inflows 4500000000 6729200000
Cash repayments of borrowings (3800000000) (6189693500)
Cash payments for interest expenses and distribution of
dividends or profits (518785791) (653587730)
Cash payments relating to other financing activities (971697) -
Sub-total of cash outflows (4319757488) (6843281230)
Net cash flows from/(used in) financing activities 180242512 (114081230)
Effect of foreign exchange rate changes on cash and cash
equivalents 253 519
Net decrease in cash and cash equivalents (161073174) (44147075)
Add: Cash and cash equivalents at the beginning of the
year 385577463 429724538
Cash and cash equivalents at the end of the year 224504289 385577463
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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Attributable to equity owners of the Company
Note Share capital
Capital
surplus
Other
comprehensive
income
Surplus
reserve
Undistributed
profits
Minority
interests
Total owners'
equity
Balance at 1 January 2019 5250283986 5102846886 550010133 7834155143 5490006140 7290519359 31517821647
Movements for the year
ended 31 December
2019
Total comprehensive income
Net profit - - - - 1146767033 660407857 1807174890
Other comprehensive
income 4(37) - - 1126132911 - - - 1126132911
Capital invested and reduced
by shareholders
Other - - - - - 476340000 476340000
Profit distribution
Appropriation to surplus
reserve 4(38) - - - 411612450 (411612450) - -
Distribution to equity
owners 4(39)(a) - - - - (315017039) (415937941) (730954980)
Share of interests in
associates in proportion to
the shareholding
4(36)
4(39)(b) (5813698) - - (1015404) - (6829102)
Transactions with minority
shareholders 4(36) - (115014) - - - 115014 -
Balance at 31 December
2019 5250283986 5096918174 1676143044 8245767593 5909128280 8011444289 34189685366
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Attributable to equity owners of the Company
Note Share capital
Capital
surplus
Other
comprehensive
income
Surplus
reserve
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
Net profit - - - - 474461997 435635440 910097437
Other comprehensive
income
4(37)
- - 413008610 - - - 413008610
Capital invested and
reduced by
shareholders
Other - - - - - 1448059396 1448059396
Profit distribution
Appropriation to surplus
reserve 4(38) - - - 243791419 (243791419) - -
Distribution to equity
owners 4(39)(a) - - - - (420022719) (486302545) (906325264)
Transactions with
minority shareholders
4(36)
- 98596201 - - - (98596201) -
Others - - - - (33932454) (15946091) (49878545)
Balance at 31 December
2018 5250283986 5102846886 550010133 7834155143 5490006140 7290519359 31517821647
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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note Share capital
Capital
surplus
Other
comprehensive
income
Surplus
reserve
Undistributed
profits
Total owners'
equity
Balance at 1 January 2019 5250283986 5605794601 550010133 7834155143 4472241538 23712485401
Movements for the year ended 31
December 2019
Total comprehensive income
Net profit - - - - 770265843 770265843
Other comprehensive income 4(37) - - 1126132911 - - 1126132911
Profit distribution
Appropriation to surplus reserve 4(38) - - - 411612450 (411612450) -
Distribution to equity owners 4(39)(a) - - - - (315017039) (315017039)
Share of interests in associates in
proportion to the shareholding
4(36)
4(39)(b) - (5813698) - - (1015404) (6829102)
Balance at 31 December 2019 5250283986 5599980903 1676143044 8245767593 4514862488 25287038014
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note Share capital
Capital
surplus
Other
comprehensive
income
Surplus
reserve
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
Net profit - - - - 1176035572 1176035572
Other comprehensive income - - 413008610 - - 413008610
Profit distribution
Appropriation to surplus reserve 4(38) - - - 243791419 (243791419) -
Distribution to equity owners 4(39)(a) - - - - (420022719) (420022719)
Others - - - - (36856) (36856)
Balance at 31 December 2018 5250283986 5605794601 550010133 7834155143 4472241538 23712485401
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 2019
(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 2019 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 17 April 2020.
2 Summary of significant accounting policies and accounting estimates
The Group determines specific accounting policies and accounting estimates based on the
characteristics of production and operation which are mainly reflected in the measurement of
expected credit losses of receivables (Note 2(9)) costing of inventory (Note 2(10)) fixed asset
depreciation and intangible asset amortisation (Notes 2(13) 2(16)) impairment of long-term assets
(Note 2(18)) timing of revenue recognition (Note 2(22)) deferred tax assets and deferred tax
liabilities (Note 2(24)) etc.
Details of the Group's critical judgements used in determining significant accounting policies are set
forth in Note 2(27).
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business
Enterprises - Basic Standard and the specific accounting standards and other relevant regulations
issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter
collectively referred to as “the Accounting Standards for Business Enterprises” or “CASs”) and the
disclosure requirements in the Preparation Convention of Information Disclosure by Companies
Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by the China
Securities Regulatory Commission.
As at 31 December 2019 the Group’s net current liabilities amounted to RMB 8376 million. Capital
commitments contracted for by the Group amounted to RMB [13735 million] among which the
capital expenditure due within one year amounted to RMB [4544 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 2019 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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Con’d)
(1) Basis of preparation (Con’d)
(b) The Group maintains good relations of long-term cooperation with financial institutions (including the
Company’s associate Guangdong Energy Group Finance Co. Ltd. (“Energy Group Finance Company”)
formerly known as Guangdong Yudean Finance Co. Ltd.) in order to obtain sufficient financing credit
lines. As at 31 December 2019 the Group’s available credit line from financial institutions amounted to
approximately RMB 31903 million with RMB 9616 million from Energy Group Finance Company RMB
18287 million from other commercial banks and financial institutions and RMB 4000 million from
issuance of corporate bonds approved by the China Securities Regulatory Commission. Among the
Group’s available credit line from financial institutions approximately RMB 8512 million is due before 31
December 2020. Management has communicated with the financial institutions and hence expected the
credit line due before 31 December 2020 to renew the term for another 12 months.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Group and the Company for the year ended 31 December 2019 are in
compliance with the Accounting Standards for Business Enterprises and truly and completely present the
consolidated and company financial position of the Group and the Company as at 31 December 2019 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 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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Con’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 on which such control ceases. For a subsidiary that is acquired in a
business combination involving enterprises under common control it is included in the consolidated
financial statements from the date when it together with the Company comes under common control
of the ultimate controlling party. The portion of the net profits realised before the combination date is
presented separately in the consolidated income statement.In preparing the consolidated financial statements where the accounting policies and the accounting
periods of the Company and subsidiaries are inconsistent the financial statements of the subsidiaries
are adjusted in accordance with the accounting policies and the accounting period of the Company.
For subsidiaries acquired from business combinations involving enterprises not under common
control the individual financial statements of the subsidiaries are adjusted based on the fair value of
the identifiable net assets at the acquisition date.
All significant intra-group balances transactions and unrealised profits are eliminated in the
consolidated financial statements. The portion of subsidiaries’ shareholders' equity and the portion of
subsidiaries’ net profits and losses and comprehensive incomes for the period not attributable to the
Company are recognised as minority interests net profit attributed to minority interests and total
comprehensive incomes attributed to non-controlling interests and presented separately in the
consolidated financial statements under shareholders' equity net profits and total comprehensive
income respectively. Unrealised profits and losses resulting from the sale of assets by the Company
to its subsidiaries are fully eliminated against net profit attributable to owners of the parent.Unrealised profits and losses resulting from the sale of assets by a subsidiary to the Company are
eliminated and allocated between net profit attributable to owners of the parent and minority interest
income in accordance with the allocation proportion of the parent in the subsidiary. Unrealised profits
and losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated
between net profit attributable to owners of the parent and minority interest income in accordance
with the allocation proportion of the parent in the selling subsidiary.If the accounting treatment of a transaction is inconsistent in the financial statements at the Group
level and at the Company or its subsidiary level adjustment will be made from the perspective of the
Group.
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand deposits that can be readily drawn on demand
and short-term and highly liquid investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
(8) Foreign currency translation
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the
dates of the transactions.
At the balance sheet date monetary items denominated in foreign currencies are translated into RMB
using the spot exchange rates on the balance sheet date. Exchange differences arising from these
translations are recognised in profit or loss for the current period except for those attributable to
foreign currency borrowings that have been taken out specifically for acquisition or construction of
qualifying assets which are capitalised as part of the cost of those assets. Non-monetary items
denominated in foreign currencies that are measured at historical costs are translated at the balance
sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
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 2019
(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 instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. A financial asset or a financial liability is recognised
when the Group becomes a party to the contractual provisions of the instrument.(a) Financial assets
(i) Classification and measurement
Based on the business model for financial asset management and the contractual cash flow
characteristics of financial assets the Group classifies the financial assets as: a) financial assets
measured at amortised cost; b) financial assets at fair value through other comprehensive income;
c) financial assets at fair value through profit or loss.The financial assets are measured at fair value at initial recognition. Related transaction costs that
are attributable to the acquisition of the financial assets are included in the initially recognised
amounts except for the financial assets at fair value through profit or loss the related transaction
costs of which are recognised directly in profit or loss for the current period. Accounts receivable or
notes receivable arising from sales of products or rendering of services (excluding or without
regard to significant financing components) are initially recognised at the consideration that is
entitled to be charged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financial
liabilities from the perspective of the issuer and are measured in the following ways:
Measured at amortised cost:
The Group’s business model for financial asset management aims to receive contractual cash
flows. The contractual cash flow characteristics of such financial assets are consistent with basic
loan arrangement which means the cash flow generated at certain date is only the payment for the
principal and the corresponding interest based on unpaid principal. The interest income of such
financial assets is recognised using the effective interest method. Such financial assets are mainly
including cash at bank and on hand accounts receivable other receivables long-term
receivables etc. Long-term receivables that are due within one year (inclusive) as from the
balance sheet date are included in the current portion of non-current assets.
Equity instruments
Investments in equity instruments over which the Group has no control joint control or significant
influence are measured at fair value through profit or loss under financial assets held for trading.In addition the Group classifies certain investments in equity instruments not held for trading as
financial assets measured at fair value through other comprehensive income which are presented
as investments in other equity instruments. The relevant dividend income of such financial assets
is included in the current profit or loss. The relevant dividend income of such financial assets is
included in the current profit or loss.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 instrument (Cont'd)
(a) Financial assets (Cont’d)
(ii) Impairment
The Group recognises the loss provision based on expected credit losses (“ECL”) for financial
assets measured at amortised cost.Giving consideration to reasonable and supportable information on past events current conditions
and forecasts of future economic conditions as well as the default risk weight the Group
recognises the ECL as the probability-weighted amount of the present value of the difference
between the cash flows receivable from the contract and the cash flows expected to collect.
As at each balance sheet date the ECL of financial instruments at different stages is measured
respectively. 12-month ECL provision is recognised for financial instruments in Stage 1 that have
not had a significant increase in credit risk since initial recognition; lifetime ECL provision is
recognised for financial instruments in Stage 2 that have had a significant increase in credit risk yet
without credit impairment since initial recognition; and lifetime ECL provision is recognised for
financial instruments in Stage 3 that have had credit impairment since initial recognition.
For the financial instruments with lower credit risk on the balance sheet date the Group assumes
there is no significant increase in credit risk since initial recognition and recognises the 12-month
ECL provision.
For the financial instruments in Stage 1 Stage 2 and with lower credit risk the Group calculates
the interest income by applying the effective interest rate to the gross carrying amount (before
deduction of the impairment provision). For the financial instrument in Stage 3 the interest income
is calculated by applying the effective interest rate to the amortised cost (after deduction of the
impairment provision from the gross carrying amount).
For accounts receivable from operating activities such as sales of goods and rendering of service
regardless of whether there is a significant financing component the Group measures the loss
provision using lifetime ECL.In case the ECL of an individually assessed financial asset cannot be evaluated with reasonable
cost the Group divides the receivables into certain groupings based on credit risk characteristics
and calculates the ECL for the groupings. Basis for determining groupings and provisions is as
follows:
Accounts receivable grouping 1 Receivables from sales of electricity
Accounts receivable grouping 2 Receivables from related parties
Accounts receivable grouping 3 Other accounts receivable
Other receivables grouping 1
Project expenses paid on behalf reserves receivable and
other receivables
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 instrument (Cont'd)
(a) Financial assets (Cont’d)
(ii) Impairment (Cont’d)
The Group prepares the cross-reference between overdue days of accounts receivable and
lifetime ECL rate and calculates the ECL on the basis of historical credit losses experience the
current conditions and forecasts of future economic conditions for the accounts receivable that are
classified as groupings. The Group on the basis of the exposure at default and the
12-month/lifetime ECL rate calculates the ECL of other receivables that are classified into
groupings with consideration to historical credit losses experience the current conditions and
forecasts of future economic conditions.The Group recognises the loss provision made or reversed into profit or loss for the current period.
For debt instruments held at fair value through other comprehensive income the Group adjusts
other comprehensive income while the impairment loss or gain is recognised in profit or loss for the
current period.(iii) Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to
receive the cash flows from the financial asset expire; (2) the financial asset has been transferred
and the Group transfers substantially all the risks and rewards of ownership of the financial asset to
the transferee; (3) the financial asset has been transferred and the Group has not retained control
of the financial asset although the Group neither transfers nor retains substantially all the risks and
rewards of ownership of the financial asset.On derecognition of the other equity instrument investments 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 other comprehensive income is recognised in retained earnings;
on derecognition of other financial assets 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 other comprehensive income is recognised in profit or loss.(b) Financial liabilities
Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at
fair value through profit or loss at initial recognition.
Financial liabilities of the Group mainly comprise financial liabilities at amortised cost including
notes and accounts payables other payables borrowings debentures payable etc. Such financial
liabilities are initially recognised at fair value net of transaction costs incurred and subsequently
measured using the effective interest method. Financial liabilities that are due within one year
(inclusive) are classified as current liabilities; those with maturities over one year but are due within
one year (inclusive) as from the balance sheet date are classified as current portion of non-current
liabilities. Others are classified as non-current liabilities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 instrument (Cont'd)
(b) Financial liabilities (Cont’d)
A financial liability is derecognised or partly derecognised when the current obligation is discharged
or partly discharged. The difference between the carrying amount of the 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. During valuation the Group adopts the
valuation technique that is applicable in the current circumstances and contains sufficient available
data and other information supports choosing inputs with features of assets or liabilities that are
consistent with those market participants consider in related transactions of assets or liabilities
and giving priority to relevant observable inputs. When relevant observable inputs are not available
or feasible unobservable inputs are adopted.
(10) Inventories
(a) Classification
Inventories mainly comprise fuel and spare parts and are measured at the lower of cost and net
realisable value.(b) 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 sale 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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its
subsidiaries and the Group’s long-term equity investments in its joint ventures and associates.
A subsidiary is an investee over which the Company is able to exercise control. A joint venture is a
joint arrangement which is structured through a separate vehicle over which the Group has joint
control together with other parties and only has rights to the net assets of the arrangement based
on legal forms contractual terms and other facts and circumstances. An associate is the investee
over which the Group has significant influence by participating in the financial and operating policy
decisions.Investments in subsidiaries are presented in the Company’s financial statements under equity
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 acquired through a business combination: for long-term equity investments
acquired through a business combination involving enterprises under common control the investment cost is
the absorbing party’s share of the carrying amount of owners’ equity of the party being absorbed at the
combination date; for long-term equity investment acquired through a business combination involving
enterprises not under common control the investment cost is the combination cost.
For long-term equity investments acquired not through a business combination: for long-term
equity investment acquired by payment in cash the initial investment cost is the purchase price
actually paid; for long-term equity investment acquired by issuing equity securities the initial
investment cost is the fair value of the equity securities issued.(b) Subsequent measurement and recognition of profit or loss
Long-term equity investments accounted for using the cost method are measured at the initial
investment cost. Cash dividend or profit distribution declared by an investee is recognised as
investment income in profit or loss for the current period.
For long-term equity investments that are accounted for using the equity method where the initial
investment cost exceeds the Company’s share of the fair value of the investee’s identifiable net
assets at the time of acquisition the investment is initially measured at cost. Where the initial
investment cost is less than the Company’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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(11) Long-term equity investments(Cont’d)
Under the equity method the Group recognises the investment income according to its share of
net profit or loss of the investee. The Group discontinues recognising its share of the net losses of
an investee after the carrying amounts of the long-term equity investment together with any
long-term interests that in substance form part of the investor’s net investment in the investee are
reduced to zero. However if the Group has obligations for additional losses and the criteria with
respect to recognition of provisions are satisfied the Group continues recognising the estimated
losses that it needs to bear. 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. The unrealised profits
or losses arising from the transactions between the Group and its investees are eliminated in
proportion to the Group’s equity interest in the investees based on which the investment gain or
losses are recognised. For the loss on the intra-group transaction amongst the Group and its
investees attributable to asset impairment losses any unrealised loss is not eliminated.(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(18)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) 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
(amortisation) rates
Buildings 22 to 40 years 0% to 5% 2.38% to 4.55%
When an investment property is transferred to owner-occupied property it is reclassified to fixed
asset with the carrying amount determined at the carrying amount of the investment property at the
date of the transfer.The 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.
(13) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings power generation equipment motor vehicles and other
equipment.
Fixed assets are recognised when it is probable that the related economic benefits will flow to the
Group and the costs can be reliably measured. Fixed assets purchased or constructed 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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) Fixed assets (Cont’d)
(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 and the estimated net 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 25 years 0% to 5% 3.80% 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 amount of a fixed asset is reduced to the recoverable amount when the recoverable
amount is below the carrying amount (Note 2(18)).(d) Basis for identification of fixed assets held under finance leases and related measurement
A finance lease is a lease that transfers substantially all the risks and rewards incidental to
ownership of an asset. The leased asset is recognised at the lower of the fair value of the leased
asset and the present value of the minimum lease payments. The difference between the recorded
amount of the leased asset and the minimum lease payments is accounted for as unrecognised
finance charge (Note 2(25)(b)).
Fixed assets held under a finance lease is depreciated on a basis consistent with the depreciation
policy adopted for fixed assets that are self-owned. When a leased asset can be reasonably
determined that its ownership will be transferred at the end of the lease term it is depreciated over
its estimated useful life; otherwise the leased asset is depreciated over the shorter 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 benefit is 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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) 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 begins from the following
month. The carrying amount of construction in progress is reduced to the recoverable amount
when the recoverable amount is below its carrying amount (Note 2(18)).
(15) Borrowing costs
The borrowing costs that are directly attributable to acquisition and construction of an asset that
needs a substantially long period of time for its intended use commence to be capitalised and
recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have
been incurred and the activities relating to the acquisition and construction that are necessary to
prepare the asset for its intended use have commenced. The capitalisation of borrowing costs
ceases when the asset under acquisition or construction becomes ready for its intended use and
the borrowing costs incurred thereafter are recognised in profit or loss for the current period.
Capitalisation of borrowing costs is suspended during periods in which the acquisition or
construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3
months until the acquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying for
capitalisation the amount of borrowing costs eligible for capitalisation is determined by deducting
any interest income earned from depositing the unused specific borrowings in the banks or any
investment income arising on the temporary investment of those borrowings during the
capitalisation period.
For general borrowings utilised for the acquisition and construction of an asset qualifying for
capitalisation the capitalised amount of the general borrowings 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 interest rate at which the future cash flows of the
borrowings over the estimated life or a shorter applicable period are discounted into the initial
recognised amount of the borrowings.
(16) Intangible assets
Intangible assets include land use rights sea use rights and software and are measured at cost.The intangible assets contributed by the state-owned shareholders upon the reorganisation of the
Group into a corporation are recognised based on the evaluated amounts as approved by the
state-owned assets administration department.(a) Land use rights and sea use rights
Land use rights are amortised on the straight-line basis over their approved use period of 20 to 70
years. If the acquisition costs of the land use rights and the buildings located thereon cannot be
reasonably allocated between the land use rights and the buildings all of the acquisition costs are
recognised as fixed assets.Sea use rights are amortised on the straight-line basis over their approved use period of 50 years.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(16) Intangible assets (Cont’d)
(b) Other intangible assets
Fixed assets other than land use rights and sea use rights are amortised on a straight-line-basis
over the expected useful lives of 2 to 25 years.(c) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life review of its useful life and amortisation method is
performed at each year-end with adjustment made as appropriate.(d) Research and development
The expenditure on an internal research and development project is classified into expenditure on
the research phase and expenditure on the development phase based on its nature and whether
there is material uncertainty that the research and development activities can form an intangible
asset at the end of the project.
Expenditure on the research phase is recognised in profit or loss in the period in which it is
incurred. Expenditure on the development phase is capitalised only if all of the following conditions
are satisfied:
? management intends to complete the intangible asset and use or sell it;
? it can be demonstrated how the intangible asset will generate economic benefits: products with
the application of intangible assets or the intangible assets themselves can prove to have
market value intangible assets for internal use application can prove to be of usefulness;
? there are adequate technical financial and other resources to complete the development and
the ability to use or sell the intangible asset;
? it is technically feasible to complete the intangible asset so that it will be available for use or
sale; and
? the expenditure attributable to the intangible asset during its development phase can be reliably
measured.Other development expenditures that do not meet the conditions above are recognised in profit or
loss in the period in which they are incurred. Development costs previously recognised as
expenses are not recognised as an asset in a subsequent period. Capitalised expenditure on the
development phase is presented as development costs in the balance sheet and transferred to
intangible assets at the date that the asset is ready for its intended use.(e) Impairment of intangible assets
The carrying amount of intangible assets is reduced to the recoverable amount when the
recoverable amount is below the carrying amount (Note 2(18)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets held under
operating leases and other expenditures that have been incurred but should be recognised as
expenses over more than one year in the current and subsequent years. Long-term prepaid
expenses are amortised on the straight-line basis over the expected beneficial period and are
presented at actual expenditure net of accumulated amortisation.
(18) Impairment of long-term assets
Fixed assets construction in progress intangible assets with finite useful lives investment
properties that are measured at cost and long-term equity investments in subsidiaries joint
ventures and associates are tested for impairment if there is any indication that an asset may be
impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable
amount of an asset is less than its carrying amount a provision for impairment and an impairment
loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the
present value of the future cash flows expected to be derived from the asset. Provision for asset
impairment is determined and recognised on individual asset basis. If it is not possible to estimate
the recoverable amount of an individual asset the recoverable amount of a group of assets to
which the asset belongs is determined. A group of assets is the smallest group of assets that is able
to generate independent cash inflows.Goodwill that is separately presented in the financial statements is tested at least annually for
impairment irrespective of whether there is any indication that it may be impaired. In conducting
the test the carrying amount of goodwill is allocated to the related asset groups 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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) 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 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 into defined contribution plans and 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.
Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local
authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on
the basic pensions are calculated according to the bases and percentage prescribed by the
relevant local authorities. When employees retire the local labour and social security authorities
are obliged to pay the basic pensions to them.Supplementary pensions
The Group purchases supplementary pensions for employees and pays insurance premium
according to the policies of GEGC.The amounts based on the above calculations are recognised as liabilities in the accounting period
in which the service has been rendered by the employees with a corresponding charge to the
profit or loss for the current period or the cost of relevant assets.(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
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) Employee benefits (Cont'd)
(c) Termination benefits (Cont’d)
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.
(20) Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are approved by
the shareholders’ meeting.
(21) Provisions
Provisions for product warranties onerous contracts etc. are recognised when the Group has a
present obligation it is probable that an outflow of economic benefits will be required to settle the
obligation and the amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the
related present obligation. Factors surrounding a contingency such as the risks uncertainties and
the time value of money are taken into account as a whole in reaching the best estimate of a
provision. Where the effect of the time value of money is material the best estimate is determined
by discounting the related future cash outflows. The increase in the discounted amount of the
provision arising from passage of time is recognised as interest expense.The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect
the current best estimate.The Group recognises the loss provision of financial guarantee contracts which provision is based
on ECL.
The provisions expected to be settled within one year since the balance sheet date are classified
as current liabilities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(22) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration
received or receivable for the sale of goods and services in the ordinary course of the Group’s
activities. Revenue is shown net of discounts 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.(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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from the
government including tax return financial subsidy etc.Government grants are recognised when the grants can be received and the Group can comply
with all attached conditions. If a government grant is a monetary asset it will be measured at the
amount received or receivable. If a government grant is a non-monetary asset it will be measured
at its fair value. If it is unable to obtain its fair value reliably it will be measured at its nominal
amount.Government grants related to assets refer to government grants which are obtained by the Group
for the purposes of purchase construction or acquisition of the long-term assets. Government
grants related to income refer to the government grants other than those related to assets.Government grants related to assets are recorded as deferred income and recognised in profit or
loss on a systemic basis over the useful lives of the assets.Government grants related to daily operationthat 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. Other government
grants related to income that compensate future costs expenses or losses are recorded as
deferred income and deduct against the related costs expenses or losses; government grants
related to income that compensate incurred costs expenses or losses deduct against
The Group applies the presentation method consistently to the similar government grants in the
financial statements.Government grants that are related to ordinary activities are included in operating profit otherwise
they are recorded in non-operating income or expenses.
For the policy loans with favourable interest rates the Group records the loans at the actual
amounts and calculates the interests by loan principals and the favourable interest rates.
(24) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the
differences arising between the tax bases of assets and liabilities and their carrying amounts
(temporary differences). Deferred tax asset is recognised for the deductible losses that can be
carried forward to subsequent years for deduction of the taxable profit in accordance with the tax
laws. No deferred tax liability is recognised for a temporary difference arising from the initial
recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the
temporary differences resulting from the initial recognition of assets or liabilities due to a
transaction other than a business combination which affects neither accounting profit nor taxable
profit (or deductible losses). 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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) Deferred tax assets and deferred tax liabilities (Cont’d)
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.
(25) Leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a
finance lease. An operating lease is a lease other than a finance lease.(a) Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period
of the lease and are either capitalised as part of the cost of related assets or charged as an
expense for the current period.Rental income from an operating lease is recognised on a straight-line basis over the period of the
lease.(b) Finance leases
The leased asset is recognised at the lower of the fair value of the leased asset and the present
value of the minimum lease payments. The difference between the recorded amount of the leased
asset and the minimum lease payments is accounted for as unrecognised finance charge and is
amortised using the effective interest method over the period of the lease. A long-term payable is
recorded at the amount equal to the minimum lease payments less the unrecognised finance
charge.
(26) Segment information
The Group identifies operating segments based on the internal organisation structure
management requirements and internal reporting system and discloses segment information of
reportable segments which are determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1)
the component is able to earn revenues and incur expenses from its ordinary activities; (2) whose
operating results are regularly reviewed by the Group’s management to make decisions about
resources to be allocated to the segment and to assess its performance and (3) for which the
information on financial position operating results and cash flows is available to the Group. If two
or more operating segments have similar economic characteristics and satisfy certain conditions
they are aggregated into one single operating segment.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements applied
based on historical experience and other factors including expectations of future events that are
believed to be reasonable under the circumstances.(a) Key judgement in critical accounting policy
Critical accounting estimates and key assumptions listed beblow contain significant risks to major
changes on the carrying amount of assests and liabilities in the following accouting year:
(i) Classfication of financial assets
The Group determines the classification of financial assets based on the significant judgement of
analysis of business model and cash flow characteristics.The Group determines the business model of managing financial assets based on the level of
financial assets’ group. The consideration factors include the means of assessing and reporting to
the key management the performance of the financial assets the risks that hinders the
performance assets and the managing style and the means of payment to its own management
personnel.The major judgment in determining whether the contractual cash flow characteristics of the
financial assets is in consistency of the borrowing arrangement includes: whether there is a
change in the amount of principal or the timing of the duration when repayment in advance and etc.occurs; whether the mere considerations of interest are time value of the money credit risk other
basic risks of debt and consideration for cost and profit. For example the judgment on the amount
of repayment in advance should be whether or not the amount only reflects the unpaid principle
the interest that is calculated based on the unpaid principle and the reasonable compensation for
terminating the contract in advance.(ii) Assessment of significant increase in credit risk
The assessment of the Group on whether the increase of credit risk is significant includes changes
in one or more than one indicators: the conditions of the debtor’s business the internal and
external credit rating the significant change in the actual or expected operation result the value of
collateral asset or the significant decrease in the credit rating of the guarantor.The assessment of the Group on whether a credit loss occurs includes the debtors are in financial
difficulties in the restructure of debts or possibly subject to bankruptcy.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) Critical accounting estimates and judgements(Cont’d)
(b) Critical accounting estimates and key assumptions
(i) Estimates on impairment of long-term assets
As described in Note 2(18) fixed assets construction in progress intangible assets with finite
useful lives investment properties that are measured at cost and long-term equity investments in
subsidiaries joint ventures and associates are tested for impairment if there are indications that
the assets may be impaired at the balance sheet date.When assessing whether the above assets are impaired management mainly evaluates and
analyses: (i) whether events affecting asset impairment occurred; (ii) whether the present value of
expected cash flows arising from the continuing use or disposal of the asset is lower than its
carrying amount; and (iii) whether the significant assumptions used in the calculation of the present
value of the estimated cash flows are appropriate.Relevant assumptions adopted by the Group to determine impairment e.g. changes in
assumptions on discount rate 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.(ii) Measurement of expected credit losses
The Group calculates expected credit losses through default risk exposure and expected credit
loss rate and determines the expected credit loss rate based on default probability and default
loss rate. In determining the expected credit loss rate the Group uses data such as internal
historical credit loss experience etc. and adjusts historical data based on current conditions and
forward-looking information. When considering forward-looking information the indicators used by
the Group include the risk of economic downturn the external market environment the
technological environment and changes in customer conditions. The Group regularly monitors and
reviews assumptions related to the calculation of expected credit losses. In 2019 there was no
significant change in the above estimation techniques and key assumptions.(iii) Useful lives and residual values of fixed assets
The useful lives and residual values of fixed assets are determined by management after taking
into account their durability and past maintenance records based on the industry practice. The
useful lives and residual values of the assets are reviewed at each year-end with appropriate
adjustments made accordingly.
On 25 January 2019 the Group revised the estimated useful life of relevant fixed assets of Shajiao
A Power Plant(Note 2(29)).
Any changes in the useful lives and residual values of fixed assets may have significant impact on
the Group’s net profit.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) Critical accounting estimates and judgements (Cont’d)
(b) Critical accounting estimates and key assumptions (Cont’d)
(iv) Income taxes
The Group is subject to enterprise 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.(v) 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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(28) Significant changes in accounting policies
In 2017 the Ministry of Finance issued the revised CAS 22 - Recognition and Measurement of Financial Instruments CAS 23 - Transfer of Financial Assets
and CAS 37 - Presentation of Financial Instruments (hereinafter collectively referred to as “new financial instruments standards”) and the Circular on
Revising and Issuing the Formats of Corporate Financial Statements for the Year of 2019 (Cai Kuai [2019] No. 6) in 2019. The Group’s financial statements
for the year ended 2019 are prepared in accordance with the above standards and circular. Impacts of the revisions on the financial statements of the Group
and the Company are as follows:
(a) Revisions on the formats of corporate financial statements
(i) Impacts on the consolidated balance sheet are as follows:
The nature and the reasons of the changes in
accounting policies The line items affected The amounts affected
31 December 2018 1 January 2018
The Group split notes and accounts receivables into
accounts receivable and notes receivable.
Accounts receivable 3358331949 2826237259
Notes and accounts receivables (3358331949) (2826237259)
The Group split notes and accounts payables into
accounts payable and notes payable.
Accounts payable 2196600415 2219027261
Notes payable 941161107 297611800
Notes and accounts payables (3137761522) (2516639061)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(28) Significant changes in accounting policies (Cont’d)
(a) Revisions on the formats of corporate financial statements
(ii) Impacts on the Company’s balance sheet are as follows:
The nature and the reasons of the changes in
accounting policies The line items affected The amounts affected
31 December 2018 1 January 2018
The Company split notes and accounts
receivables into accounts receivable and
notes receivable.
Accounts receivable 264537475 195462150
Notes and accounts receivables (264537475) (195462150)
The Company split notes and accounts
payables into accounts payable and notes
payable.
Accounts payable 223827319 221325935
Notes and accounts payables (223827319) (221325935)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(28) Significant changes in accounting policies (Cont’d)
(b) Financial instruments
In accordance with relevant provisions of the new financial instruments standards the Group and the Company recognised the cumulative effect of initially
applying the standards as an adjustment to the opening balance of retained earnings in 2019 and other relevant line items in the financial statements. The
comparatives were not restated. As at 31 December 2018 and 1 January 2019 the Group and the Company had no financial assets designated as at fair
value through profit or loss.(i) As at 1 January 2019 the financial assets presented in the Group’s consolidated financial statements were classified and measured in accordance with the
old/new financial instruments standards as follows:
Old financial instruments standards New financial instruments standards
Line item Measurement Carrying amount Line item Measurement Carrying amount
Cash at bank and on hand Amortised cost 5574382892 Cash at bank and on hand Amortised cost 5574382892
Accounts receivable Amortised cost 3358331949 Accounts receivable Amortised cost 3358331949
Other receivables Amortised cost 222976826 Other receivables Amortised cost 222976826
Available-for-sale financial
assets
Fair value through other
comprehensive income
(equity instruments) 1139806331 Investments in other equity
instruments
Fair value through other
comprehensive income 1565806331Cost (equity instruments) 426000000
Long-term receivables Amortised cost 89762071 Long-term receivables Amortised cost 89762071
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(28) Significant changes in accounting policies (Cont’d)
(b) Financial instruments (Cont'd)
(i) As at 1 January 2019 the financial assets presented in the Company’s financial statements were classified and measured in accordance with the old/new
financial instruments standards as follows:
Old financial instruments standards New financial instruments standards
Line item Measurement Carrying amount Line item Measurement Carrying amount
Cash at bank and on hand Amortised cost 385577463
Cash at bank and on
hand Amortised cost 385577463
Accounts receivable Amortised cost 264537475 Accounts receivable Amortised cost 264537475
Other receivables Amortised cost 375296228 Other receivables Amortised cost 375296228
Available-for-sale financial
assets
Fair value through other
comprehensive income
(equity instruments) 1139806331 Investments in other
equity instruments
Fair value through other
comprehensive income 1565806331Cost (equity instruments) 426000000
Long-term receivables Amortised cost 306460000 Long-term receivables Amortised cost 306460000
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(28) Significant changes in accounting policies (Cont’d)
(b) Financial instruments (Cont'd)
(ii) As at 1 January 2019 the carrying amount of financial assets is reconciled from the old financial
instruments standards to the new financial instruments standards based on the new
measurement:
Measurement under the new financial instruments standards Note
Financial assets at amortised cost Table 1
Financial assets at fair value through other comprehensive income Table 2
Table 1: Financial assets at amortised cost under the new financial instruments standards
Note Carrying amount
Consolidated Company
Receivables (Note 1)
31 December 2018 3671070846 946293703
Remeasurement: Total expected credit losses - -
1 January 2019 3671070846 946293703
Table 2: Financial assets at fair value through other comprehensive income under the new
financial instruments standards
Note Carrying amount
Consolidated Company
Investments in other equity instruments
31 December 2018 - -
Add: Transfer from available-for-sale financial
assets (under the old financial
instruments standards) i) 1565806331 1565806331
1 January 2019 1565806331 1565806331
Note Carrying amount
Consolidated Company
Available-for-sale financial assets
31 December 2018 1565806331 1565806331
Less: Transfer to financial assets at fair value
through other comprehensive income
(under the new financial instruments
standards)
i)
(1565806331) (1565806331)
1 January 2019 - -
Total financial assets at fair value through other
comprehensive income (under the new financial
instruments standards) 1565806331 1565806331
Note 1: As at 31 December 2018 and 1 January 2019 the balance of receivables included
accounts receivable other receivables and long-term receivables.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(28) Significant changes in accounting policies (Cont’d)
(b) Financial instruments (Cont'd)
(ii) As at 1 January 2019 the carrying amount of financial assets is reconciled from the old financial
instruments standards to the new financial instruments standards based on the new measurement
(Cont'd):
i) As at 31 December 2018 the carrying amount of unlisted equity investments measured at cost
held by the Group and the Company was RMB 426000000 and there was no accumulated
impairment provision. The carrying amount of listed equity investments measured at fair value
held by the Group and the Company was RMB 1139806331. As at 1 January 2019 the Group
and the Company out of strategic investment concern elected to designate investments in equity
instruments as financial assets at fair value through other comprehensive income which were
presented as investments in other equity instruments. The restatement had no impacts on the
Group’s opening balance of other comprehensive income and retained earnings.(iii) As at 1 January 2019 the Group's and the Company’s provision for impairment of receivables
other receivables and long-term receivables measured at amortised cost was adjusted to ECL
loss provision in accordance with the new financial instruments standards without significant
impacts from remeasurement.
As at 1 January 2019 the Group’s and the Company’s provision for available-for-sale financial
assets measured at amortised cost was adjusted to financial assets at fair value through other
comprehensive income under the new financial instruments standards with no impacts on the
Group’s and the Company’s opening balance of other comprehensive income and retained
earnings.
(29) Significant changes in accounting estimates
According to the Group’s management assessment the estimated useful life of relevant fixed
assets would be significantly shortened according to the current shutdown requested by
Guangdong Development and Reform Commission. On 25 January 2019 the Group held the
Ninth Session of the Board during its 7th meeting which approved the Proposal on Adjustment for
the Depreciation Periods for Fixed Assets of Shajiao A. According to the proposal Shajiao A
started to change the estimated useful life of certain fixed assets since 1 January 2019.The changes in estimated useful life of fixed assets are as follows:
Estimated useful life
before the changes
Estimated useful life
after the changes
Buildings 5 to 40 years 5 years
Power generation equipment 2 to 18 years 1 to 5 years
Other equipment 2 to 15 years 1 to 5 years
Besides the changes in accounting estimates mentioned above the judgement and assumption
made by the Group is in consistence with that of financial statement of for the year ended 31
December 2018.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
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% 9% 10% 13%
and 16%
Revenue from hydropower sales 3%
City maintenance and
construction tax
Amount of VAT paid 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 Property’s rental income or the residual
value from original value less the
deducting proportion
12% and 1.2%
Environmental protection
tax (c)
Calculated and paid based on the
pollution equivalent values or the
discharge of taxable pollutants
multiplied by the applicable tax
amounts
Calculated and paid
based on the
applicable tax
amounts of
different pollutants
(a) Pursuant to the Announcement on Relevant Policies for Deepening Value-added Tax Reform
([2019] No. 39) issued by the Ministry of Finance the State Administration of Taxation and the
General Administration of Customs and relevant regulations the applicable tax rates of revenue
arising from sales of electricity sales of by-products and maintenance and repair services and
revenue arising from sales of heat energy of the Group are 13% and 9% respectively from 1 April
2019 while the VAT rates were 16% and 10% respectively before then. The Group’s revenue
from 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 including Guangdong Yudean Dianbai Wind Power Co. Ltd. (“DianbaiWind Power”) Guangdong Yudean Qujie Wind Power Co. Ltd. (“Qujie Wind Power”) GuangdongYudean Leizhou Wind Power Co. Ltd. (“Leizhou Wind Power”) Zhanjiang Electric Co. Ltd.(“Zhanjiang Electric”) and Zhanjiang Yuheng Power Maintenance Installation Co. Ltd. (“Yuheng
Electric”) (Note 3(2)) the applicable tax rate for the Company and its subsidiaries is 25%.
(c) According to the Environmental Protection Tax Law of the People's Republic of China the Group
has applied the environmental protection tax since 1 January 2018. The taxation objects include
air pollutants water pollutants solid waste and noise. Taxation is based on the amount of
pollutants’ emissions.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 when revenue from production and
operations is recorded for the first time and can enjoy half rate reduction in the following three
years. As the local taxation bureau considered that Dianbai Wind Power 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 were 12.5% 12.5% and 0% in 2019 (2018: 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 Wind Power”) Guangdong Yudean Zhanjiang
Wind Power Generation Co. Ltd. (“Zhanjiang Wind Power”) Guangdong Yudean Xuwen Wind
Power Electricity Co. Ltd. (“Xuwen Wind Power”) Dianbai Wind Power Qujie Wind Power
Leizhou Wind Power and Huilai Wind Power Co. Ltd. (“Huilai Wind Power”) will be refunded
immediately in accordance with the Notice Concerning Value-added Tax Policies on Wind Power
Generation (Cai Shui [2015] No. 74).(b) In 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 preference can be requested as of the year of the issue of the
high-tech enterprise certificate and the income tax rate applicable to Zhanjiang Electric for 2019
was 15% (2018: 15%).(c) In accordance with regulations of the Notice on Implementing the Inclusive Tax Deduction and
Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13) for a small
enterprise with low profits for the part of the annual taxable income not exceeding RMB 1 million
the amount of taxable income is reduced to 25% of income and is subject to the enterprise
income at the tax rate of 20%; for the part between RMB 1 million and RMB 3 million the amount
of taxable income is reduced to 50% of income and is subject to the enterprise income at the tax
rate of 20%. The above small enterprises with low profits refer to enterprises that are engaged in
non-restricted and prohibited industries of the country which meet three conditions of annual
taxable income not exceeding RMB 3 million the number of employees not exceeding 300 and
the amount of total assets not exceeding RMB 50 million. Yuheng Electric met the conditions for
small low-profit enterprises in 2019 and its amount of taxable income was reduced to 25% of
income and was subject to the enterprise income tax at the tax rate of 20%. Therefore the
applicable enterprise income tax rate for Yuheng Electric was 20% (2018: 20%).(d) Pursuant to Notice on Issues Concerning the Implementation of the Preferential Catalogue of
Enterprise Income Tax for Integrated Utilisation of Resources (Cai Shui [2008] No. 47) since 1
January 2008 enterprises use the resources listed in the Preferential Catalogue of Enterprise
Income Tax for Integrated Utilisation of Resources (2008 Edition) as the main raw materials to
produce products in the above catalogue that meet national or industry related standards and
the income from above products is reduced to 90% of the total income of the enterprises for the
year. The Group’s subsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power Plant
Co. Ltd. (“Pinghai Power Plant”) use coal ash to produce commercial coal ash which meets the
above-mentioned preferential tax conditions for integrated utilisation of resources. Therefore in
2019 revenue from sales of coal ash from Zhanjiang Electric and Pinghai Power Plant was
reduced to 90% of the total income for the year.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 2019 31 December 2018
Cash on hand 25114 31413
Cash at bank 611602016 592232767
Deposits with Energy Group Finance
Company (b) 4468014839 4978118712
Other cash balances (c) 2000000 4000000
5081641969 5574382892
(a) As at 31 December 2019 the Group had no offshore deposit (31 December 2018: Nil).(b) Deposits with Energy Group Finance Company refer to the deposits placed in Energy Group
Finance Company (Note 8(6)). Energy Group Finance Company is a financial institution
established with the approval of the People’s Bank of China. Both the Company and Energy
Group Finance Company are controlled by GEGC.(c) As at 31 December 2019 other cash balances amounted to RMB 2000000 (31 December 2018:
RMB 4000000) 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) Accounts receivable
31 December 2019 31 December 2018
Accounts receivable 3197845885 3358489658
Less: Provision for bad debts (155421) (157709)
3197690464 3358331949
(a) The ageing of accounts receivable is analysed as follows:
31 December 2019 31 December 2018
Within 1 year 3181230519 3358257370
1 to 2 years 16615366 144000
2 to 3 years - 88288
3197845885 3358489658
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(2) Accounts receivable (Cont’d)
(b) As at 31 December 2019 the five largest amounts of accounts receivable aggregated by debtors
were analysed as follows:
Balance
Amount of
provision for
bad debts
Percentage in
total balance of
accounts
receivable
Total amount of five largest
accounts receivable 3118521413 - 97.52%
(c) Provision for bad debts
For accounts receivable irrespective of whether a significant financing component exists the
Group measures the loss provision according to the lifetime expected credit losses.
From 31 December 2019 the Group’s recognition standards and accrual methods for provision for
bad debts of accounts receivable are detailed in Note 2(9).
As at 31 December 2019 accounts receivable for which the related provision for bad debts was
provided on the grouping basis were analysed as follows:
Grouping 1:
As at 31 December 2019 the amount of receivables from sales of electricity of the Group was RMB
3172505993 which was mainly from China Southern Power Grid Co. Ltd. and its subsidiaries
(collectively referred to as “China Southern Power Grid”). Taking into consideration its good credit
the Group believes that there is no significant credit risk in the receivables from sales proceeds of
electricity and the possibility of significant losses due to China Southern Power Grid's default is
extremely low. The Group's expected credit loss rate for sales proceeds of electricity is 0%.Grouping 2:
As at 31 December 2019 the amount of receivables from related parties of the Group was RMB
9797752 and the historical loss rate was extremely low. Therefore The Group believes that there
is no significant credit risk in the receivables from related parties and the possibility of significant
losses due to their default is extremely low. The Group's expected credit loss rate for receivables
from related parties is 0%.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(2) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
As at 31 December 2019 accounts receivable for which the related provision for bad debts was
provided on the grouping basis were analysed as follows (Cont’d):
Grouping 3:
31 December 2019
Ending balance Provision for bad debts
Amount
Lifetime expected
credit loss rate Amount
Within 1 year 15542140 1.00% (155421)
(d) In 2019 the amount of provision for bad debts of accounts receivable was RMB 155421 and the
amount of reversed provision for bad debts of accounts receivable in the current year was RMB
157709 with corresponding ending balance of RMB 13210607. There was no provision for bad
debts of accounts receivable written off.(e) As at 31 December 2019 the right to collect electric charges of several electric subsidiaries were
pledged to banks to obtain long-term borrowings of RMB 4231292593 including RMB
240907909 due within one year (31 December 2018: RMB 2765356586 including RMB
213259115 due within one year) (Note 4(27)(a) and (29)(a)).
(3) Advances to suppliers
31 December 2019 31 December 2018
Advances to suppliers 605429334 906566047
Less: Provision for bad debts (115001) (305001)
605314333 906261046
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
(a) The ageing of advances to suppliers is analysed below:
31 December 2019 31 December 2018
Amount % of total balance Amount % of total balance
Within 1 year 604059281 99.77% 898864235 99.16%
1 to 2 years 886809 0.15% 6388849 0.70%
2 to 3 years 115026 0.02% 756896 0.08%
Over 3 years 368218 0.06% 556067 0.06%
605429334 100.00% 906566047 100.00%
As at 31 December 2019 advances to suppliers with ageing over one year amounted to RMB
1370503 (31 December 2018: RMB 7701812) mainly including prepayments for spare parts
and materials.(b) Provision for bad debts in the current year
2019 2018
Opening balance (305001) -
Increase in the current year - (305001)
Reversal in the current year 190000 -
Ending balance (115001) (305001)
(c) As at 31 December 2019 the five largest advances to suppliers aggregated by debtors were
analysed as follows:
Amount
% of total advances to
suppliers
Total of the five largest advances to suppliers 561925680 92.81%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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
31 December 2019 31 December 2018
Receivables from sales of by-products 76167059 61562471
Supplementary medical insurance fund receivable 68705226 74967255
Land withdrawal receivable (a) 46536090 -
Land deposits receivable 23446000 23446000
Interest receivable 20866069 18856569
Project expenses paid on behalf 8101462 5423464
Reserves receivable 5004220 8207879
Government grants receivable 447197 5208887
Others 35274171 34749156
284547494 232421681
Less: Provision for bad debts (11745906) (9444855)
272801588 222976826
(a) In 2019 due to the adjustment of Zhaoqing New Area's land plan the Zhaoqing New Area Land
Reserve Center recovered the land plot held by the Company's subsidiary Guangdong Yudean
Yongan Natural Gas Thermal Power Co. Ltd. (“Yongan Natural Gas”) at a consideration of RMB
93072180. As at 31 December 2019 Yongan Natural Gas received RMB 46536090 and the
remaining amount of RMB 46536090 had not yet been recovered. When Yongan Natural Gas
disposed the land the difference of RMB 29476253 between the consideration of the land of
RMB 93072180 and the carrying amount of the intangible assets of RMB 63595927 was
included in the gains on disposal of intangible assets (Note 4(50)).(b) The ageing of other receivables is analysed as follows:
31 December 2019 31 December 2018
Within 1 year 191812809 188702751
1 to 2 years 58978320 33895584
2 to 3 years 24490685 2033130
Over 3 years 9265680 7790216
284547494 232421681
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
(c) Provision for losses and changes in ending balance statements
Stage 1 Stage 3
12-month expected credit loss rate
(grouping)
12-month expected credit loss
rate (individual) Sub-total
Lifetime expected credit losses
(credit impaired) Total
Ending
balance
Provision for
bad debts
Ending
balance
Provision for
bad debts
Provision for
bad debts
Ending
balance
Provision for
bad debts
Provision for
bad debts
31 December 2018 42334934 (2437143) 183079035 - (2437143) 7007712 (7007712) (9444855)
Changes in accounting
policies - - - - - - - -
1 January 2019 42334934 (2437143) 183079035 - (2437143) 7007712 (7007712) (9444855)
Increase in the current year 34018630 (2328374) 53082239 - (2328374) - - (2328374)
Reversal in the current year (34975056) 1457324 - - 1457324 - - 1457324
Transfer to Stage 3 (1430001) - - - - 1430001 (1430001) (1430001)
31 December 2019 39948507 (3308193) 236161274 - (3308193) 8437713 (8437713) (11745906)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
(c) Provision for losses and changes in ending balance statements (Cont’d):
As at 31 December 2019 the Group did not have any other receivables at Stage 2. Other receivables
at Stage 1 and Stage 3 were analysed below:
(i) As at 31 December 2019 other receivables at Stage 1 with provision for bad debts on individual basis
were analysed as follows:
Ending balance
12-month
expected
credit loss rate
Provision
for bad
debts Reason
Receivables from related
parties 97026761 0.00% -
The counterparty is a related party with a
historical loss rate of 0% and the risk of
expected credit losses is extremely low.Supplementary medical
insurance fund
receivable 68705226 0.00% -
The counterparty is Taikang Pension CompanyLimited Guangdong Branch (“TaikangPension”) which mainly provides custody
services for the Group's supplementary
medical insurance fund. The historical loss
rate is 0% and the risk of expected credit
losses is extremely low.Land withdrawal
receivable 46536090 0.00% -
The counterparty is a government unit and the risk
of expected credit losses is extremely low.Land deposits receivable 23446000 0.00% -
The counterparty is a government unit and the risk
of expected credit losses is extremely low.Government grants
receivable 447197 0.00% -
The counterparty is a government unit and the risk
of expected credit losses is extremely low.
236161274 -
(ii) As at 31 December 2019 other receivables at Stage 1 with provision for bad debts on grouping basis
were analysed as follows:
31 December 2019
Ending balance Provision for losses
Amount Amount % of provision
Grouping 1
Within 1 year 32588629 (331096) 1.00%
1 to 2 years 4057224 (405722) 10.00%
2 to 3 years 1044685 (313406) 30.00%
Over 3 years 2257969 (2257969) 100.00%
39948507 (3308193) 8.28%
(iii) As at 31 December 2019 provision for bad debts of other receivables at Stage 3 was analysed below:
Ending
balance
Lifetime expected
credit loss rate
Provision for
bad debts Reason
Project expenses
paid on behalf 2356339 100.00% (2356339)
Due to financial difficulties of the counterparties
it is not expected to be recovered.Reserves
receivable 34676 100.00% (34676)
Due to the employee's departure it is not
expected to be recovered.Others 6046698 100.00% (6046698)
Due to financial difficulties of the counterparties
it is not expected to be recovered.
8437713 (8437713)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) In 2019 the amount of provision for bad debts was RMB 3758375 and the amount of reversed
provision for bad debts in the current year was RMB 1457324 with corresponding ending balance of
RMB 34975056. There was no provision for bad debts written off.
(e) As at 31 December 2019 the five largest other receivables aggregated by debtors were analysed as
follows:
Nature Balance Ageing
% of total
balance of other
receivables
Provision for
bad debts
Guangdong Yudean
Environmental Protection Co.
Ltd. (“Yudean Environmental”)
Receivables from sales of
by-products 69568758 Within 1 year 24.45% -
Taikang Pension
Supplementary medical
insurance fund
receivable 68705226
Within 2
years 24.15% -
Zhaoqing New Area Land
Reserve Center
Land withdrawal
receivable 46536090 Within 1 year 16.35% -
Maoming Port Bohe New Port
Construction Headquarters
Office Land deposits receivable 23446000 2 to 3 years 8.24% -
China Energy Engineering Group
Guangdong Power
Engineering Co. Ltd.
Project expenses paid on
behalf 3270049
Within 2
years 1.15% (63133)
211526123 74.34% (63133)
(f) As at 31 December 2019 the Group's government grants recognised at amounts receivable were
analysed as follows:
Government grants Balance Ageing Estimated time amount and basis of collection
Xuwen Taxation Bureau Immediate refund of VAT 244947 Within 1 year Expected to be fully recovered by June 2020
Zhanjiang Taxation
Bureau Immediate refund of VAT 146714 Within 1 year Expected to be fully recovered by June 2020
Huilai Taxation Bureau Immediate refund of VAT 55536 Within 1 year Expected to be fully recovered by June 2020
447197
(5) Inventories
(a) Inventories are summarised by categories as follows:
31 December 2019 31 December 2018
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 1090379874 (219427) 1090160447 780978630 (1429525) 779549105
Spare parts 718858215 (14790029) 704068186 697094406 (18128209) 678966197
Others 22830636 - 22830636 23301968 - 23301968
1832068725 (15009456) 1817059269 1501375004 (19557734) 1481817270
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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
2018
Increase in the
current year
Written off in
the current year
31 December
2019
Spare parts (18128209) (310725) 3648905 (14790029)
Fuel (1429525) (219427) 1429525 (219427)
(19557734) (530152) 5078430 (15009456)
As at 31 December 2019 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 upgrading of Zhanjiang Electric’s units a subsidiary of the
Company.
(c) Provision for decline in the value of inventories is as follows:
Specific basis for determining net
realisable value
Reason for write-off of provision for
decline in the value of inventories
Spare parts and fuel Market price Disposed spare parts and fuel
(6) Current portion of non-current assets
31 December 2019 31 December 2018
Current portion of finance lease deposits 28865131 -
As at 31 December 2019 current portion of non-current assets mainly represented the present
value of RMB 30000000 of deposits paid for fixed assets held under sales and leaseback
arrangement (31 December 2018: Nil).
(7) Other current assets
31 December 2019 31 December 2018
VAT to be deducted 296729796 613635937
Prepaid income tax 7893174 4181711
Others 972597 35828
305595567 617853476
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Available-for-sale financial assets
31 December 2019 31 December 2018
Measured at fair value
- Available-for-sale equity instruments - 1139806331
Measured at cost
- Available-for-sale equity instruments - 426000000
- 1565806331
Less: Provision for impairment - -
- 1565806331
(a) Available-for-sale financial assets summarised by relevant information:
Available-for-sale financial assets measured at fair value:
31 December 2019 31 December 2018
Available-for-sale equity instruments
- Fair value - 1139806331
- Cost - 435463816
- Accumulated amount included in other
comprehensive income - 704342515
- Accumulated provision for impairment - -
Available-for-sale financial assets measured at cost:
31 December 2019 31 December 2018
Available-for-sale equity instruments
- Cost - 426000000
(9) Investments in other equity instruments
31 December 2019 31 December 2018
Cash dividends in
the current year
Investments in other
equity instruments 3142371373 - 58580379
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Investments in other equity instruments (Cont’d)
Including:
31 December
2018
Transfer from
available-for-sale
financial assets
(under the old
financial instruments
standards)
Movements in
the current year
31 December
2019
Shareholding (%)
in the investee
Cash dividends in
the current year
Investments in other equity instruments - cost
- Shenzhen Energy Corporation (“Shenzhen Energy”) (a) - 15890628 - 15890628 0.32% 630000
- Shanghai Shenergy Co. Ltd. (“Shanghai Shenergy”) (b) - 235837988 - 235837988 1.92% 11106450
- GMG International Tendering Co. Ltd. (“GMG Tendering”) (c) - 3600000 - 3600000 1.29% 360000
- Shenzhen Capital Group Co. Ltd. (“SCG”) (d) - 180135200 78162240 258297440 3.67% 18483929
- Sunshine Insurance Group Corporation (“Sunshine Insurance”)
(e) - 356000000 - 356000000 3.38% 28000000- South Sea Wind Electricity Development Co. Ltd. (“South SeaWind Electricity”) (f) - 70000000 - 70000000 10.00% -
- 861463816 78162240 939626056 58580379
Investments in other equity instruments - accumulated changes in fair
value
- Shenzhen Energy (a) - 50259372 12096000 62355372
- Shanghai Shenergy (b) - 35159392 51644993 86804385
- GMG Tendering (c) - 18000 3564000 3582000
- SCG (d) - 618905751 18796809 637702560
- Sunshine Insurance (e) - - 1412000000 1412000000
- South Sea Wind Electricity (f) - - 301000 301000
- 704342515 1498402802 2202745317
Total - 1565806331 1576565042 3142371373
The Group holds the voting rights of the above investees. However the voting rights held by the Group is only related to the administrative management of
those investees and the Group does not participate in or influence the financial and operating decisions of the above investees in any ways. Therefore the
Group has no significant influence on the above investees and accordingly they are accounted for as investments in other equity instruments.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Investments in other equity instruments (Cont’d)
(a) As at 31 December 2019 the Company held 12600000 tradable A shares in Shenzhen Energy
with fair value of RMB 78246000 and the investment cost was RMB 15890628. The investment
was stated at fair value with reference to the market price. During the year gains at fair value
amounted to RMB 12096000 (2018: losses of RMB 10206000) and other comprehensive
income was adjusted upwards accordingly.(b) As at 31 December 2019 the Company held 55532250 tradable A shares in Shanghai Shenergy
with fair value of RMB 322642373 and the investment cost was RMB 235837988. The
investment was stated at fair value with reference to the market price. During the year gains at fair
value amounted to RMB 51644993 (2018: losses of RMB 54421605) and other comprehensive
income was adjusted upwards accordingly.(c) As at 31 December 2019 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
7182000 and the investment cost was RMB 3600000. The investment was stated at fair value
with reference to the market price. During the year gains at fair value amounted to RMB 3564000
(2018: losses of RMB 3600000) and other comprehensive income was adjusted upwards
accordingly.(d) Pursuant to the Proposal on Involvement in Capital and Share Increase of Shenzhen Capital
Group Co. Ltd. approved by the Board of Directors in September 2018 the Company was
permitted to make a capital injection of RMB 213034000 to Shenzhen Capital Group Co. Ltd.
(“SCG”) at its original proportion of shareholding. A capital injection of RMB 65135200 was made
in 2018 and a capital injection of RMB 78162240 was made in 2019. The remaining capital
injection of RMB 69736560 would be made in 2020. As at 31 December 2019 the fair value of
the equity that the Company held in SCG amounted to RMB 896000000 and the investment cost
was RMB 258297440. During the year gains at fair value amounted to RMB 18796809 (2018:
gains of RMB 618905751) and other comprehensive income was adjusted upwards accordingly.(e) As at 31 December 2019 the fair value of the equity that the Company held in Sunshine Insurance
amounted to RMB 1768000000 and the investment cost was RMB 356000000. During the
year gains at fair value amounted to RMB 1412000000 (2018: Nil) and other comprehensive
income was adjusted upwards accordingly.(f) As at 31 December 2019 the fair value of the equity that the Company held in South Sea Wind
Electricity amounted to RMB 70301000 and the investment cost was RMB 70000000. During
the year gains at fair value amounted to RMB 301000 (2018: Nil) 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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(10) Long-term receivables
31 December 2019 31 December 2018
Sales and leaseback deposits 94721477 89762071
Less: Current portion of sales and leaseback
deposits (Note 4(6)) (28865131) -
65856346 89762071
In 2019 the discount rate of the long-term receivables ranged from 5.97% to 6.68% (2018: 5.40%
to 7.30%).
As at 31 December 2019 the long-term receivables mainly represented the present value of RMB 70000000
of deposits paid for fixed assets held under sales and leaseback arrangement (31 December 2018: RMB
100000000).
(11) Long-term equity investments
31 December 2019 31 December 2018
Joint ventures (a) 615218300 602584896
Associates (b) 5936894116 5817560544
6552112416 6420145440
Less: Provision for impairment of long-term
equity investments (96327854) (25010686)
6455784562 6395134754
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Long-term equity investments (Cont’d)
(a) Joint ventures
31 December
2018
Share of net
profit/(loss) under
equity method
Cash dividends
declared 31 December 2019
Provision for
impairment at
the end of the
year
Guangdong Electric Power Industry Fuel Co.Ltd. (“Industry Fuel”) 602584896 80686526 (68053122) 615218300 -
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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Long-term equity investments (Cont’d)
(b) Associates
Movements for the current year
31 December
2018
Increase in
investment
Share of net
profit/(loss)
under equity
method
Share of other
comprehensive
income (Note
4(37))
Share of
other
changes in
equity (iv)
Cash
dividends or
profits
declared
Provision for
impairment
31 December
2019
Provision for
impairment at
the end of the
year
Guangdong Guohua Yudean
Taishan Electric Co. Ltd.(“Taishan Electric”) 1969208996 - 116141826 5117 - - - 2085355939 -
Shanxi Yudean Energy Co. Ltd.(“Shanxi Yudean Energy”) 1440189806 - 244013740 - - (40000000) - 1644203546 -
Energy Group Finance Company
(i) 728955751 250000000 77073152 - (39794) (64106710) - 991882399 -
Yudean Shipping (ii) 935111350 - (476194650) 215351 (10262458) - - 448869593 -
Guangdong Yudean Property
Self-Insurance Co. Ltd.(“Yudean PropertySelf-Insurance”) 258026177 - 4147759 - 3907 (773832) - 261404011 -
Guangdong Yudean WesternInvestment Co. Ltd. (“WesternInvestment”) 135652349 - 1211348 2110342 3469243 - - 142443282 -
Huaneng Shantou Wind Power
Co. Ltd. (“Huaneng ShantouWind Power”) 54265187 - 6178117 - - (3700001) - 56743303 -
Yangshan Zhongxinkeng Electric
Co. Ltd. (“YangshanZhongxinkeng”) 7808826 - 1235845 - - (1001005) - 8043666 -
Yangshan Jiangkeng Hydropower
Co. Ltd. (“YangshanJiangkeng”) 5694710 - 512330 - - (809317) - 5397723 -
Weixin Yuntou (iii) 257636706 - 9903262 - - - (71317168) 196222800 (96327854)
5792549858 250000000 (15777271) 2330810 (6829102) (110390865) l(71317168) 5840566262 (96327854)
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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Long-term equity investments (Cont’d)
(b) Associates (Cont'd):
(i) In December 2019 the Company made an additional investment of RMB 250000000 to Energy
Group Finance Company keeping an investment proportion of 25% in total investment (31
December 2018: 25%).
(ii) In 2019 Yudean Shipping an associate of the Company was affected by the global economic
downturn and fierce competition in the shipping industry resulting in a decline in shipping prices; in
addition due to the reduction of output from the Organisation of the Petroleum Exporting Countries
tight geopolitical relations and implementation of new environmental protection policies the
operating costs had shown a volatile upward trend which had reduced the profits of Yudean
Shipping and there were indications of impairment as the economic performance of the relevant
long-term assets was weaker than expected in 2019. As at 31 December 2019 Yudean
Shipping conducted an impairment test on its relevant long-term assets and the Company reviewed
the impairment assessment report and assessed that there was no further impairment risk in
long-term equity investments in Yudean Shipping. Based on the above assessment results
Yudean Shipping recognised the impairment of long-term assets; in 2019 Yudean Shipping
resulted in a net loss of RMB 1360556144 the Company recognised the investment loss of
Yudean Shipping of RMB 476194650 under the equity method. As at 31 December 2019 the
carrying amount of the Company's long-term equity investments in Yudean Shipping was RMB
448869593.
(iii) In 2019 the Company's associate Weixin Yuntou was affected by the fierce competition of rich
and cheap hydropower in Yunnan Province. Weixin Yuntou only received a small amount of
thermal power generation quotas and there was continuous operating loss after deducting gains
on disposal of non-recurring assets in 2019. As at 31 December 2019 the Company conducted an
impairment test on the long-term equity investments in Weixin Yuntou. As the carrying amount of
the long-term equity investments was lower than the recoverable amount the provision for
impairment of long-term equity investments was RMB 71317168. As at 31 December 2019 the
carrying amount of the Company's long-term equity investments in Weixin Yuntou was RMB
196222800 and the accumulated provision for impairment of long-term equity investments was
RMB 96327854.
(iv) In 2019 other changes in equity from long-term equity investments in associates mainly included
changes in capital surplus of RMB 5813698 (Note 4(36)(b)) and changes in undistributed profits of
RMB 1015404 (Note 4(39)(b)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Investment properties
Buildings
Cost
- Opening balance 23350683
- Transfer from fixed assets in the current year(Note (13)(a)) 45225231
- Ending balance 68575914
Accumulated depreciation
- Opening balance (12539961)
- Transfer from fixed assets in the current year(Note (13)(a)) (1857161)
- Increase in the current year (a) (2085161)
- Ending balance (16482283)
Carrying amount
- Ending balance 52093631
- Opening balance 10810722
(a) In 2019 depreciation charged to investment properties was RMB 2085161 (2018: RMB 701435)
among which depreciation expenses charged to cost of sales and general and administrative
expenses were RMB 1449563 and RMB 635598 (2018: RMB 65837 and RMB 635598)
respectively.
(13) Fixed assets
31 December 2019 31 December 2018
Fixed assets (a) 38530031244 41146148282
Disposal of fixed assets (b) 25687474 11446566
38555718718 41157594848
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets (Cont’d)
(a) Fixed assets
Buildings
Power
generation
equipment Motor vehicles
Other
equipment Total
Cost
31 December 2018 18598681407 58157094942 601983027 1313127190 78670886566
Increase in the current year
Purchase 3083076 10615041 13393907 27759185 54851209
Transfer from
construction in
progress (ii) 90033203 1075024184 - 25636438 1190693825
Decrease in the current
year
Disposal and scrap (38068065) (317038599) (19889632) (10145098) (385141394)
Transfer to investment
properties in the
current year (ii) (45225231) - - - (45225231)
31 December 2019 18608504390 58925695568 595487302 1356377715 79486064975
Accumulated depreciation
31 December 2018 (6520345627) (28700016782) (445707863) (881635550) (36547705822)
Increase in the current year
Provision (i) (442142211) (3199308912) (15692678) (58742539) (3715886340)
Decrease in the current
year
Disposal and scrap 18902496 142266424 18793045 9616199 189578164
Transfer to investment
properties in the current
year (ii) 1857161 - - - 1857161
31 December 2019 (6941728181) (31757059270) (442607496) (930761890) (40072156837)
Provision for impairment
31 December 2018 (137793202) (833579211) (1656135) (4003914) (977032462)
Increase in the current year
Provision (iii) (9097784) (45035393) - - (54133177)
Decrease in the current
year
Disposal and scrap - 147288745 - - 147288745
31 December 2019 (146890986) (731325859) (1656135) (4003914) (883876894)
Carrying amount
31 December 2019 11519885223 26437310439 151223671 421611911 38530031244
31 December 2018 11940542578 28623498949 154619029 427487726 41146148282
As at 31 December 2018 and 31 December 2019 no power generation equipment or buildings
were pledged as collateral for long-term borrowings.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
(i) Depreciation of fixed assets charged into cost of sales general and administrative expenses
construction in progress and selling and distribution expenses are set out as follows:
2019 2018
Cost of sales 3658711930 3317059002
General and administrative expenses 50165964 45160260
Construction in progress 6574021 5625856
Selling and distribution expenses 434425 168621
3715886340 3368013739
(ii) The cost of fixed assets transferred from construction in progress in the current year amounted to
RMB 1190693825 (2018: RMB 3621286114) (Note 4(14)(a)(i)).
The cost transferred from fixed assets to investment properties amounted to RMB 45225231 with
accumulated depreciation of RMB 1857161 (2018: Nil) (Note 4(12)).(iii) Impairment of fixed assets
In 2019 movements of provision for impairment of fixed assets were as follows:
31 December
2018
Increase in
the current
year
Decrease in
the current
year
31 December
2019
Guangdong Yuejia Electric Co. Ltd. (“Yuejia Electric”)
(Note 1) 480449596 - - 480449596
Guangdong Electric Power Development Co. Ltd.Shajiao A Power Plant (“Shajiao A Power Plant”) (Note
3 6) 76354667 - - 76354667
Xuwen Wind Power (Note 2) 126877473 - (126877473) -Zhanjiang Zhongyue Energy Co. Ltd. (“Zhongyue
Energy”) (Note 3) 12662964 - - 12662964Guangdong Red Bay Power Generation Co. Ltd. (“Red
Bay Power”) (Note 3) 48597529 - - 48597529
Zhanjiang Electric (Note 3 5) 25901275 13250756 (20329156) 18822875Guangdong Yudean Jinghai Power Co. Ltd. (“JinghaiPower”) (Note 3 5) 13455717 21496541 - 34952258
Guangdong Shaoguan Yuejiang Electric Power Co. Ltd.(“Yuejiang Power”) (Note 3 5) 54091864 19385880 (82116) 73395628Maoming Zhenneng Thermal Power Co. Ltd. (“MaomingZhenneng”) (Note 3) 29751684 - - 29751684
Guangdong Huizhou Natural Gas Power Co. Ltd.(“Huizhou Natural Gas”) (Note 4) 23895462 - - 23895462
Lincang Energy (Note 7) 82261857 - - 82261857
Guangdong Province Wind Power Generation Co. Ltd.(“Guangdong Wind Power”) 2732374 - - 2732374
977032462 54133177 (147288745) 883876894
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
(iii) 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
2019 the disposal of such fixed assets was not completed. As at 31 December 2018 and 31
December 2019 the balance of provision for impairment at the excess of the carrying amount of
asset groups and the fair value of the asset groups less disposal cost 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. In 2019 management disposed the above fixed assets with
corresponding provision for impairment at the excess of the fixed assets’ carrying amount and the
fair value of the fixed assets less disposal costof fixed assets of RMB 126877473 transferred out.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 fully implementation of
ultra-low emissions and energy-saving transformation are required to reduce 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.
As at 31 December 2017 the balance of provision for impairment at the excess of the carrying
amount of asset groups and the fair value of the asset groups less disposal cost of ultra-low
emissions energy-saving and catalyst of denitrification projects was RMB 279277897. In 2019
the provision for impairment of the fixed assets amounting to RMB 7078400 was reversed due to
dismantlement and disposal of related assets (2018: RMB 60708691).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
(iv) Impairment of fixed assets (Cont’d)
Note 4 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 made provision for impairment at the excess of the carrying amount of
asset groups and the fair value of the asset groups less disposal cost of these assets amounting to
RMB 23895462. As at 31 December 2019 the above fixed assets were not disposed.
Note 5 In 2019 the Group evaluated the assets of the subsidiaries that had no sustainable value in use.Provision for impairment at the excess of the carrying amount of asset groups and the fair value of
the asset groups less disposal cost of the following assets totaled RMB 54133177 which mainly
included provision for impairment of induced draft fans of RMB 10354839 accrued by Zhanjiang
Electric provision for impairment of the steel structure grid of No. 1 round coal yard of RMB
9097784 and provision for impairment of air preheater heat storage components of RMB
12398757 accrued by Jinghai Power and provision for impairment of induced fan accrued by
Yuejiang Power of RMB 10961796. As at 31 December 2019 the above fixed assets had not yet
been disposed.Note 6 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 were shut down in December 2019
and 4# and 5# generator units are expected to be shut down by the end of 2023. In 2018 the
Group carried out tests for impairment of the asset groups related to generator units of Shajiao A
Power Plant and made a provision for impairment at the excess of the carrying amount of asset
groups and the fair value of the asset groups less disposal cost of power generation equipment of
1# generator unit amounting to RMB 40395369. In 2019 the Group carried out tests for
impairment of the asset groups related to generator units of Shajiao A Power Plant and considered
that there was no need to further make provision for impairment. As at 31 December 2019 the
fixed assets related to above generator units that were shut down had not yet been disposed.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
(iv) Impairment of fixed assets (Cont’d)
Note 7 Impairment of related asset groups of certain subsidiaries that have suffered continuous operating
loss in recent years
In 2019 and previous years certain subsidiaries of the Group were affected by sharp fluctuations in
the price of coal used in power generation the marketization of the electricity industry and other
factors there was continuous operating loss and indications of impairment and the accumulated
provision for impairment at the excess of the carrying amount and the present value of the
estimated future cash flows of fixed assets in previous years was RMB 82261857. Taking into
consideration risks that may exist in the future such as the instability of electricity demand and the
price of coal used in power generation macro-economy and other factors the Group continuously
monitored the impairment of the above-mentioned subsidiaries' power generation asset groups
(mainly including fixed assets) in 2019.The Group conducted impairment tests on the relevant asset groups of the above-mentioned
subsidiaries in 2019. As the carrying amount of the relevant asset groups was higher than the
recoverable amounts tested there was no further impairment risk for the year. The above
recoverable amount was determined based on the present value of the estimated future cash flows
of the asset groups and the value evaluation model adopted the discount rates of 9.00% to 11.18%.(v) Fixed assets held under finance leases
Cost
Accumulated
depreciation Carrying amount
31 December 2019
Power generation equipment 2962401108 (1468140485) 1494260623
31 December 2018
Power generation equipment 2962401108 (1303446281) 1658954827
Details of the future lease payments of fixed assets held under finance leases are disclosed in Note
4(31).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
(vi) Fixed assets with pending certificates of ownership
Carrying amount
Reasons for not obtaining certificates
of ownership
Buildings 162049729 Awaiting government approval
As at 31 December 2019 after consulting the Group’s legal consultant management believed that
there were no substantial legal obstacles in obtaining the certificates and no material adverse
impact on normal operation of the Group would occur.(b) Disposal of fixed assets
31 December 2019 31 December 2018
Scraped parts of power generation
equipment 24842897 11136365
Other equipment 844577 310201
25687474 11446566
(14) Construction in progress
31 December 2019 31 December 2018
Construction in progress (a) 10881106316 7739308786
Construction materials (b) 897530 1445557
10882003846 7740754343
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Construction in progress (Cont’d)
(a) Construction in progress
31 December 2019 31 December 2018
Ending balance
Provision for
impairment Carrying amount Ending balance
Provision for
impairment Carrying amount
Bohe Coal integration project 6608072801 - 6608072801 5412887911 - 5412887911
Qujie Wailuo offshore wind power project
(Phase I) 2306302480 - 2306302480 514683670 - 514683670
Zhuhai Jinwan Electric offshore wind
power project 398849306 - 398849306 43915032 - 43915032
Yangjiang Shapa offshore wind power
project 390159975 - 390159975 232363528 - 232363528
Huadu thermal and power cogeneration
project 136704136 - 136704136 89786127 - 89786127
Qujie Wailuo offshore wind power project
(Phase II) 57038810 - 57038810 29033181 - 29033181
Lincang Dayakou Hydropower Station 41383032 - 41383032 37296440 - 37296440
Shajiao Ningzhou gas power project 5821536 - 5821536 - - -
Xuwen Shiban Ling wind power project 3871208 - 3871208 3741000 - 3741000
Huizhou Natural Gas thermal and power
cogeneration expansion project - - - 554922342 - 554922342
Jinghai 1-4# generators ultra-low
emission reduction alteration project - - - 2580251 - 2580251
Other technology improvement projects 576180865 - 576180865 437488696 - 437488696
Other infrastructure construction projects 558029098 (201306931) 356722167 546706301 (166095693) 380610608
11082413247 (201306931) 10881106316 7905404479 (166095693) 7739308786
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(i) Movements of major construction in progress
Project name Budget
31 December
2018 Increase in the
current year
Transfer to fixed
assets (Note
4(13)(a)(ii)) Impairment Other decreases 31 December 2019
Proportion of
investment to
the budget (%)
Project
progress
Accumulated
capitalised
borrowing costs
Including:
Capitalised
borrowing costs
for the year
Capitalisation
rate Source of fund
Bohe Coal integration
project 11037075900 5412887911 1289691652 - - (94506762) 6608072801 63.46% 88.45% 362809479 125970313 5.05%
Borrowings and
own funds
Qujie Wailuo offshore
wind power project
(Phase I) 3739450000 514683670 1838988533 - - (47369723) 2306302480 68.60% 99.84% 44239897 41637241 4.68%
Borrowings and
own funds
Zhuhai Jinwan Electric
offshore wind power
project 5659710000 43915032 354934274 - - - 398849306 7.39% 7.39% 5823780 5823780 3.91%
Borrowings and
own funds
Yangjiang Shapa
offshore wind power
project 5999710000 232363528 157796447 - - - 390159975 7.00% 7.00% 1480591 1480591 4.41%
Borrowings and
own funds
Huadu thermal and
power cogeneration
project 3536710000 89786127 46918009 - - - 136704136 4.01% 4.01% 1128963 1128963 3.92%
Borrowings and
own funds
Qujie Wailuo offshore
wind power project
(Phase II) 3789120000 29033181 28005629 - - - 57038810 1.72% 6.06% 86889 86889 3.91%
Borrowings and
own funds
Lincang Dayakou
Hydropower Station 1209578400 37296440 4086592 - - - 41383032 93.88% 98.00% 142886856 - -
Borrowings and
own funds
Xuwen Shiban Ling
wind power project 460639300 3741000 23510366 (22317232) - (1062926) 3871208 75.96% 88.00% 13812869 1188811 4.41%
Borrowings and
own funds
Huizhou Natural Gas
thermal and power
cogeneration
expansion project 3326370000 554922342 123845879 (668577854) - (10190367) - 80.64% 100.00% 64496444 946438 4.41%
Borrowings and
own funds
Jinghai 1-4#
generators ultra-low
emission reduction
alteration project 528142600 2580251 24709145 (27289396) - - - 100.00% 100.00% - - - Own funds
Shajiao Ningzhou gas
power project 5927600000 - 5821536 - - - 5821536 0.10% 0.10% - - - Own funds
Other technology
improvement
projects Not applicable 437488696 622212119 (471524684) - (11995266) 576180865 Not applicable
Not
applicable 2045104 1512345 4.53%
Borrowings and
own funds
Other infrastructure
construction
projects Not applicable 380610608 22110587 (984659) (35211238) (9803131) 356722167 Not applicable
Not
applicable 44576 44576 4.42%
Borrowings and
own funds
7739308786 4542630768 (1190693825) (35211238) (174928175) 10881106316 638855448 179819947
Other decreases of construction in progress for the year mainly include revenue from trial operation of RMB 59698435 the transfer of the production preparation
cost to administrative expense-production preparation cost of RMB 71933430 transfer to intangible assets of RMB 10919847 (Note 4(15)) and upfront expenses
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
of terminated projects transferred out of RMB 9803131 etc.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(ii) Provision for impairment of construction in progress
Item
31 December
2018
Increase in
the current
year
Decrease in the
current year
31 December
2019 Reason for provision
Humen Electric 2*1000MW project (Note 1) (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 (15022987) (35143224) - (50166211)
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) (68014) - (4611551)
Impairment of upfront expenses
for construction in progress
(166095693) (35211238) - (201306931)
Note 1Preparation work including preliminary feasibility studies design and three supplies and one levelling have proceeded for the project. However influenced
by national policies upon the industry the project has stagnated for years and signs of entire assets impairment have occurred. After impairment test
management has recorded provision for impairment of the project against its full carrying amount in 2017.(iii) As at 31 December 2019 some projects under construction were waiting for the approval documents. Management expected to obtain the relevant
approval documents as scheduled. In addition management expected stable cash inflows from operating activities once the new 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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) 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 inprogress of power plants to Guangdong Yudean Finance Leasing Co. Ltd. (“Yudean FinanceLeasing”) at RMB 1000000000 in total through finance leases arising from sales and leaseback
with the sales proceeds of RMB 900000000 and RMB 100000000 respectively received in 2018
and 2019. As at 31 December 2019 the ending balance of construction in progress arising from
finance leases was RMB 1000000000 (31 December 2018: RMB 900000000).
In 2018 the Group acquired Wailuo offshore wind power project of Qujie Wind Power under
finance leases. As at 31 December 2019 the ending balance of construction in progress arising
from finance leases was RMB 496524360 (31 December 2018: RMB 217415616).
In 2019 the Group acquired Yangjiang Shapa offshore wind power project of Guangdong Yudean
Yangjiang Offshore Wind Power Co. Ltd. ("Yangjiang Wind Power") under finance leases. As at 31
December 2019 the ending balance of construction in progress arising from finance leases was
RMB 98973445 (31 December 2018: Nil).
In 2019 the Group acquired Zhuhai Jinwan Electric offshore wind power project of Guangdong
Yudean Zhuhai Offshore Wind Power Co. Ltd. ("Zhuhai Wind Power") under finance leases. As at
31 December 2019 the ending balance of construction in progress arising from finance leases was
RMB 100962931 (31 December 2018: Nil).
(b) Construction materials
31 December 2019 31 December 2018
Materials for specific use 962696 1445557
Equipment for specific use 664437 -
1627133 1445557
Less: Provision for impairment of
construction materials
- Materials for specific use (729603) -
897530 1445557
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(15) 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 2018 442517684 2111186109 129906544 22468672 13720736 116800217 3029420 2839629382
Increase in the current year
Purchase - 25430496 - - - 9344163 1530920 36305579
Transfer from construction in
progress (Note 4(14)(a)(i)) - - - - 1074616 6910178 2935053 10919847
Disposal - (68138080) - - - (540902) (138450) (68817432)
31 December 2019 442517684 2068478525 129906544 22468672 14795352 132513656 7356943 2818037376
Accumulated amortisation
31 December 2018 (409328310) (336059121) (23103892) (21447068) (10192847) (84731838) (464184) (885327260)
Increase in the current year
Provision - (45587872) (2605433) - (398559) (10204414) (459347) (59255625)
Disposal - 4542153 - - - 455347 - 4997500
31 December 2019 (409328310) (377104840) (25709325) (21447068) (10591406) (94480905) (923531) (939585385)
Provision for impairment
31 December 2018 (33189374) (56502373) - (1021604) - - - (90713351)
Increase in the current year
Provision - - - - - - - -
31 December 2019 (33189374) (56502373) - (1021604) - - - (90713351)
Carrying amount
31 December 2019 - 1634871312 104197219 - 4203946 38032751 6433412 1787738640
31 December 2018 - 1718624615 106802652 - 3527889 32068379 2565236 1863588771
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(15) Intangible assets (Cont’d)
(a) In 2019 the amortised amount of intangible assets was RMB 59255625 with general and
administrative expenses of RMB 52313721 and construction in progress of RMB 6941904
respectively (In 2018 the amortised amount of intangible assets was RMB 54559956 with
general and administrative expenses of RMB 53189360 and construction in progress of RMB
1370596 respectively).
(b) As at 31 December 2019 and 31 December 2018 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.(c) As at 31 December 2019 the Group had obtained land use right certificates for all of its lands
except for lands with carrying amount of RMB 33348275 (31 December 2018: RMB 34063121)
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 would incur.
(16) Goodwill
31 December 2019 31 December 2018
Goodwill -
Guangdong Wind Power (a) 2449886 2449886
Lincang Energy (b) 25036894 25036894
27486780 27486780
Less: Provision for impairment -
Lincang Energy (b) (25036894) (25036894)
2449886 2449886
(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 net assets amounted to RMB 2449886 and was
recognised as goodwill.(b) On 5 January 2015 the Group exchanged for 51.00% of the equity in Lincang Energy held by third
parties with 14.34% of equity in Weixin Yuntou. The excess of the 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.
(17) Long-term prepaid expenses
31 December 2018
Increase in the
current year
Amortisation charged
in the current year 31 December 2019
Long-term lease charges 17315628 - (2028166) 15287462
Improvements to fixed assets
held under operating leases 4773551 1622144 (2279906) 4115789
Others - 235528 (165193) 70335
22089179 1857672 (4473265) 19473586
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
31 December 2019 31 December 2018
Deductible temporary
differences and
deductible losses Deferred tax assets
Deductible temporary
differences and
deductible losses Deferred tax assets
Deductible losses 686911585 171727895 1023611123 254800254
Provision for asset
impairments 408154790 101889644 592790665 138530294
Net income from test run
included in construction in
progress 209580236 49967756 169034589 39513222
Unrealised profits from
intra-group transactions 166852624 41713156 184890744 46222686
Amortisation of pre-operating
costs 165954215 41488554 - -
Employee benefits payable 103644393 25911098 98124525 22227221
Government grants 86420159 21605041 78570400 19642600
Depreciation of fixed assets 75431480 18857870 77115313 19278829
Amortisation of intangible
assets 4490857 1122714 3313344 828336
1907440339 474283728 2227450703 541043442
Including:
Expected to be recovered
within one year (inclusive) 44262666 60853542
Expected to be recovered
after one year 430021062 480189900
474283728 541043442
(b) Deferred tax liabilities before offsetting
31 December 2019 31 December 2018
Taxable temporary
differences
Deferred tax
liabilities
Taxable temporary
differences
Deferred tax
liabilities
Changes in fair value of other
equity instruments
included in other
comprehensive income (2202745317) (550686330) - -
Changes in fair value of
available-for-sale financial
assets included in other
comprehensive income - - (704342515) (176085629)
Net expenses in test run
included in construction in
progress (38741129) (9685282) (52176856) (13044215)
Amortisation of land use
rights (16451826) (4112957) (16835020) (4208755)
Interest receivable (3341332) (835333) - -
Depreciation of fixed assets (2560854) (640214) - -
(2263840458) (565960116) (773354391) (193338599)
Including:
Expected to be recovered
within one year (inclusive) (1863587) (1077794)
Expected to be recovered
after one year (564096529) (192260805)
(565960116) (193338599)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(18) 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 2019 31 December 2018
Deductible temporary differences 1435936580 1101102084
Deductible losses 1467976248 1124573498
2903912828 2225675582
(d) Deductible losses that are not recognised as deferred tax assets will expire in following years:
31 December 2019 31 December 2018
2019 - 3341528
2020 172104 172104
2021 141098222 141098222
2022 603896902 412387834
2023 567573810 567573810
2024 155235210 -
1467976248 1124573498
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 2019 31 December 2018
Offsetting
amount
Balance after
offsetting
Offsetting
amount
Balance after
offsetting
Deferred tax assets (28574502) 445709226 (92611758) 448431684
Deferred tax liabilities 28574502 (537385614) 92611758 (100726841)
(19) Other non-current assets
31 December 2019 31 December 2018
Prepaid equipment payments 971323399 482385711
Input VAT to be deducted 881814121 581667123
Prepayment for projects 488163133 462720385
Unrealised losses on sales and leaseback (a) 346314528 340505389
Prepayment for land use rights 64424212 3732680
Others 1819595 604970
2753858988 1871616258
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(19) Other non-current assets (Cont’d)
(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 2019 the unrealised
losses on sales and leaseback which were amortised in depreciation expenses in cost of sales from main operations amounted to RMB 16764193
(2018: RMB: 19197908).
(20) Provision for asset impairments
31 December 2018
Changes in
accounting policies 1 January 2019
Increase in the
current year
Reversal in the
current year
Write-off in the current
year 31 December 2019
Provision for bad debts of accounts
receivable (157709) - (157709) (155421) 157709 - (155421)
Including: Provision for bad debts on
grouping basis (157709) - (157709) (155421) 157709 - (155421)
Provision for bad debts of other
receivables (9444855) - (9444855) (3758375) 1457324 - (11745906)
Sub-total (9602564) - (9602564) (3913796) 1615033 - (11901327)
Provision for impairment of advances
to suppliers (305001) - (305001) - 190000 - (115001)
Provision for decline in the value of
inventories (19557734) - (19557734) (530152) - 5078430 (15009456)
Provision for impairment of long-term
equity investments (25010686) - (25010686) (71317168) - - (96327854)
Provision for impairment of long-term
equity investments (977032462) - (977032462) (54133177) - 147288745 (883876894)
Provision for impairment of
construction materials - - - (729603) - - (729603)
Provision for impairment of
construction in progress (166095693) - (166095693) (35211238) - - (201306931)
Provision for impairment of intangible
assets (90713351) - (90713351) - - - (90713351)
Provision for impairment of goodwill (25036894) - (25036894) - - - (25036894)
Sub-total (1303751821) - (1303751821) (161921338) 190000 152367175 (1313115984)
(1313354385) - (1313354385) (165835134) 1805033 152367175 (1325017311)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(21) Short-term borrowings
31 December 2019 31 December 2018
Principal
Credit loan 5894026790 7526000000
Interest
Credit loan 10106001 -
5904132791 7526000000
(a) As at 31 December 2019 the annual interest rates of the short-term borrowings ranged from 3.84%
to 4.35% (31 December 2018: from 3.92% to 4.70%).
(b) As at 31 December 2019 the principal of short-term credit loan provided by related party Energy
Group Finance Company amounted to RMB 4115000000 (31 December 2018: RMB
5042000000) (Note 8(6)). Interest payable of short-term borrowings to Energy Group Finance
Company amounted to RMB 4893053 (31 December 2018: RMB 6796062).
(22) Notes payable
31 December 2019 31 December 2018
Bank acceptance notes 794236650 555000000
Trade acceptance notes 570000000 386161107
1364236650 941161107
The Group used acceptance notes to pay for fire coal procured from the Industry Fuel. According to the
three-party agreement signed among the Group Energy Group Finance Company and Industry Fuel
discounting expenses will be borne by the Group when Industry Fuel discounts the notes they receive.
As at 31 December 2019 the balance of trade acceptance notes issued by the Group and discounted by
Industry Fuel with Energy Group Finance Company amounted to RMB 570000000 (31 December 2018: RMB
386161107) with discount rate of 2.70% to 3.72% (31 December 2018: 3.92%). The acceptance notes were
due from three to eleven months (31 December 2018: due from three to twelve months) (Note 8(6)).
As at 31 December 2019 the balance of bank acceptance notes issued by Energy Group Finance Company
and discounted by Industry Fuel with Energy Group Finance Company amounted to RMB 300000000 (31
December 2018: RMB 267000000) with discount rate of 2.70% to 3.60% (31 December 2018: 3.92% to
4.29%). The acceptance notes were due from four to twelve months (31 December 2018: due from three to
twelve months) (Note 8(6)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(22) Notes payable (Cont’d)
In 2019 the discounting interest charged by Energy Group Finance Company and borne by the
Group which was included in the discounting interest expenses in the year amounted to RMB
28961757 (2018: RMB 13243370) (Note 8(5)(h)).
The Group presented the procurement of fire coal with the acceptance note in the cash flows from
operating activities and the discounting interest borne by the Group in the cash flows from
financing activities.
(23) Accounts payable
31 December 2019 31 December 2018
Fuel payable 2042046703 1671130460
Materials and spare parts payable 372739371 473108337
Others 50368088 52361618
2465154162 2196600415
As at 31 December 2019 accounts payable with ageing over one year amounted RMB 37429105 (31
December 2018: RMB 175747169) mainly unsettled fuel payable and materials payable.
(24) Employee benefits payable
31 December 2019 31 December 2018
Short-term employee benefits payable (a) 210052524 179432031
Defined contribution plans payable (b) 3386520 29372990
Termination benefits payable (c) 29071494 26936158
242510538 235741179
(a) Short-term employee benefits payable
31 December
2019
Increase in the
current year
Decrease in the
current year
31 December
2019
Wages and salaries bonus
allowances and subsidies - 1211930585 (1211930585) -
Staff welfare 1859343 114542723 (113312318) 3089748
Social security contributions 85197432 119905777 (96365978) 108737231
Including: Medical insurance 85197432 112686811 (89147012) 108737231
Work injury insurance - 1278245 (1278245) -
Maternity insurance - 5940721 (5940721) -
Housing funds - 130099055 (130099055) -
Labour union funds and employee
education funds 87233778 48735445 (43678950) 92290273
Other short-term employee
benefits 5141478 80205754 (79411960) 5935272
179432031 1705419339 (1674798846) 210052524
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(24) Employee benefits payable (Cont'd)
(b) Defined contribution plans
31 December
2018
Increase in the
current year
Decrease in the
current year
31 December
2019
Basic pensions - 147214973 (147214973) -
Unemployment insurance - 4446135 (4446135) -
Annuity 29372990 93853466 (119839936) 3386520
29372990 245514574 (271501044) 3386520
(c) Termination benefits payable refer to early retirement benefits payable due by the Group within
one year (Note 4(33)(a)).
(25) Taxes payable
31 December 2019 31 December 2018
Unpaid VAT 330790264 242647263
Enterprise income tax payable 186789728 115757551
Individual income tax payable 14877406 12437608
City maintenance and construction tax
payable 13996062 4418167
Educational surcharge and local educational
surcharge payable 12344489 3469767
Water resource fee payable 8392765 6706870
Pollution discharge fee payable and
environmental protection tax payable 2764462 3389557
Property tax payable 18564 3347609
Land use tax payable - 2122128
Others 1403411 2705186
571377151 397001706
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(26) Other payables
31 December 2019 31 December 2018
Construction and equipment expenses payable 3754518279 3622672965
Project warranty payable 109048438 118821787
Interest payable - 59316077
-Interest payable for long-term borrowings
with interest paid in instalments and
principal repaid on maturity - 29830979
-Interest payable for debentures - 17070842
-Interest payable for short-term borrowings - 10103964
-Other interest payable - 2310292
State Oceanic and Fisheries Administration
penalty payable (b) 11531700 183676050
Dividends payable to non-tradable owners of the
Company (c) 9771322 9703930
Others 157247358 158327686
4042117097 4152518495
(a) As at 31 December 2019 other payables of RMB 1860509505 (31 December 2018: RMB
2002311622) 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 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 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. Pinghai Power had
appealed for the aforesaid matter and as at 23 August 2019 Guangdong High People’s Court
overruled such appeal and upheld the original judgement as the final judgement. As at 16 December
2019 Pinghai Power has paid up penalty of RMB 172144350 to the Administration of Ocean and
Fisheries of Guangdong Province with outstanding penalty of RMB 11531700 payable to the
Administration of Ocean and Fisheries of Huidong County. As at 20 February 2020 Pinghai Power
filed for a retrial to Supreme People’s Court and it has not yet been heard as at the issuance date of
the report. 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. As at the issuance date of the report with consultation and
communication between the Company and GEGC still underway no specific compensation solution
was reached and thus no income related to such compensation matters was recognised in the
financial statements for the year ended 31 December 2019.(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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Current portion of non-current liabilities
31 December 2019 31 December 2018
Principal
Long-term borrowings due within one year (a)
(Note 4(29)) 2758340013 1745797372
Long-term payables due within one year (b)
(Note 4(31)) 333082890 334882726
Debentures payable due within one year (c)
(Note 4(30)) 40299969 698667556
Sub-total 3131722872 2779347654
Interest
Long-term borrowings due within one year 29822181 -
Long-term payables due within one year 354166 -
Debentures payable due within one year 21081263 -
Sub-total 51257610 -
3182980482 2779347654
(a) Long-term borrowings due within one year
31 December 2019 31 December 2018
Principal
Pledged loan (i) 240907909 213259115
Guaranteed loan (ii) 1511827500 55827500
Credit loan 1005604604 1476710757
Sub-total 2758340013 1745797372
Interest
Pledged loan 6096475 -
Guaranteed loan 3740900 -
Credit loan 19984806 -
Sub-total 29822181 -
2788162194 1745797372
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Current portion of non-current liabilities (Cont'd)
(a) Long-term borrowings due within one year (Cont’d)
(i) As at 31 December 2019 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 2019 31 December 2018
Yuejiang Power 188255791 186859840
Zhanjiang Wind Power 22860000 18274167
Lincang Energy 15000000 -
Leizhou Wind Power 7985575 1597115
Xuwen Wind Power 6806543 6527993
240907909 213259115
(ii) As at 31 December 2019 Zhanjiang Wind Power provided maximum amount guarantee for Xuwen
Wind Power’s long-term borrowings of RMB 11827500 (31 December 2018: RMB 11827500)
due within one year. GEGC provided guarantees for the Company’s current portion of long-term
borrowings of RMB 1500000000 borrowed from Pacific Investment Management (31 December
2018: Nil).
(iii) As at 31 December 2019 the annual interest rate of long-term borrowings due within one year
ranged from 1.30% to 5.00% (31 December 2018: from 1.30% to 4.94%). The borrowings will be
due within 12 months.(b) Long-term payables due within one year
As at 31 December 2019 long-term payables due within one year were the net financing lease
payable of RMB 333082890 (namely the remaining net amount of the total amount of RMB
373512869 after deducting the unrecognised finance charge of RMB 40429979). 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 2019 details of long-term payables due within one year have been disclosed in
Note 4(31).(c) See details of debentures payable due within one year in Note 4(30).
(28) Other current liabilities
31 December 2019 31 December 2018
Short-term debentures payable 1912282192 1107904110
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) 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
2018
Issued in
the current year
Interest at
face value
Amortisation of
discounts or
premium
Repayments
for the year
31 December
2019
Second batch of short-term
financing notes issued by
Guangdong Electric Power
Development Co. Ltd. 2018 600000000 24/08/2018 180 days 600000000 607740000 - 2912055 - (610652055) -
Fourth batch of short-term financing
notes issued by Guangdong
Electric Power Development
Co. Ltd. 2018 500000000 27/12/2018 152 days 500000000 500164110 - 6249041 - (506413151) -
First batch of short-term financing
notes issued by Guangdong
Electric Power Development
Co. Ltd. 2019 600000000 18/02/2019 180 days 600000000 - 600000000 8225753 - (608225753) -
Second batch of short-term
financing notes issued by
Guangdong Electric Power
Development Co. Ltd. 2019 600000000 24/05/2019 180 days 600000000 - 600000000 8085246 - (608085246) -
Third batch of short-term financing
notes issued by Guangdong
Electric Power Development
Co. Ltd. 2019 900000000 14/08/2019 180 days 900000000 - 900000000 8987671 - - 908987671
Fourth batch of short-term financing
notes issued by Guangdong
Electric Power Development
Co. Ltd. 2019 1000000000 15/11/2019 180 days 1000000000 - 1000000000 3294521 - - 1003294521
4200000000 4200000000 1107904110 3100000000 37754287 - (2333376205) 1912282192
In 2019 the interest rate of short-term financing notes issued by the Company was from 2.30% to 3.60% (2018: 2.55% to 4.25%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 borrowings
31 December 2019 31 December 2018
Principal
Pledged loan (a) 4231292593 2765356586
Guaranteed loan (b) 1557285000 1606112500
Credit loan 13556865800 16176620950
Sub-total 19345443393 20548090036
Interest
Pledged loan 6096475 -
Guaranteed loan 3740900 -
Credit loan 19984806 -
Sub-total 29822181 -
19375265574 20548090036
Less: Long-term borrowings due within
one year (Note 4(27)(a))
Principal
Pledged loan (240907909) (213259115)
Guaranteed loan (1511827500) (55827500)
Credit loan (1005604604) (1476710757)
Sub-total (2758340013) (1745797372)
Interest
Pledged loan (6096475) -
Guaranteed loan (3740900) -
Credit loan (19984806) -
Sub-total (29822181) -
(2788162194) (1745797372)
Total 16587103380 18802292664
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 borrowings (Cont’d)
(a) Pledged loan
As at 31 December 2019 the charge right for electricity and accounts receivable were treated as
pledge for long-term pledged loan for the following subsidiaries:
31 December 2019 31 December 2018
Yuejiang Power (i) 1976685804 2151963439
Qujie Wind Power (ii) 1155920000 162820000
Lincang Energy (iii) 676000000 -
Leizhou Wind Power (iv) 232038267 236829612
Zhanjiang Wind Power (v) 121425000 138945000
Xuwen Wind Power (vi) 69223522 74798535
4231292593 2765356586
(i) As at 31 December 2019 the Company’s subsidiary Yuejiang Power borrowed RMB
1976685804 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% (2018: 4.53%). The borrowings include long-term borrowings due within one
year amounting to RMB 188255791 (2018: RMB 2151963439 including long-term borrowings
due within one year amounting to RMB 186859840).(ii) As at 31 December 2019 for the construction of Zhanjiang Wailuo offshore wind power project the
Company’s subsidiary Qujie Wind Power borrowed RMB 1155920000 from bank consortium and
the Bank of China during operation 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 4.41% to 4.90%
(31 December 2018: RMB 162820000 with the interest rate of 4.80%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 borrowings (Cont'd)
(a) Pledged loan (Cont’d)
(iii) In 2015 the subsidiary Lincang Energy obtained loans from bank consortium initiated by
Commercial Bank of China. According to the loan contract the loan specifically for the construction
of Dayakou Hydropower Station was secured by the station’s right to charge electricity during
operation with the maturity date of 9 June 2031. As at 31 December 2019 the balance of the loan
was RMB 676000000 including a long-term borrowings due within one year amounting to RMB
15000000 with the interest rate of 4.41%.
(iv) 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
2019 the balance of pledged loan was RMB 232038267 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 7985575 (31 December 2018: RMB 236829612 including a long-term
borrowings due within one year amounting to RMB 1597115 with the interest rate ranged from
4.41% to 4.90%).
(v) As at 31 December 2019 the Company’s subsidiary Zhanjiang Wind Power borrowed RMB
121425000 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% (2018: 4.41%). The borrowings include long-term borrowings due within one year amounting
to RMB 22860000 (2018: RMB 138945000 including long-term borrowings due within one year
amounting to RMB 18274167).(vi) 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 2019 the balance of the loan above was totalled at USD
9922812 (equivalent to RMB 69223522) (2018: USD 10898493 (equivalent to RMB
74798535)) among which balance of the long-term borrowings due within one year amounted to
USD 975681 (equivalent to RMB 6806543) (2018: USD 951159 (equivalent to RMB 6527993)).
The maturity date of the loan is 3 March 2030 with the annual interest rate from 3.13% % to 3.76%
(2018: 2.05% to 3.46%). Meanwhile the loans are guaranteed by the Company.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 borrowings (Cont'd)
(b) Guaranteed loan
As at 31 December 2019 the balance of the Company’s subsidiary Xuwen Wind Power’s long-term
borrowings from Energy Group Finance Company was RMB 22400000 including long-term
borrowings due within one year of RMB 7400000 which was secured by the guarantee provided by
Zhanjiang Wind Power (2018: RMB 29800000 including long-term borrowings due within one year
amounted to RMB 7400000). The annual interest rate of the loan is 4.66% (2018: 4.66%) and the
maturity date is 21 August 2022.
As at 31 December 2019 the balance of the Company’s subsidiary Xuwen Wind Power’s long-term
borrowings from Yudean Finance was RMB 23900000 including long term borrowings due within one
year of RMB 1400000 which was secured by the guarantee provided by Zhanjiang Wind Power
(2018: RMB 18300000 including long-term borrowings due within one year amounted to RMB
1400000). The annual interest rate of the loan is 4.41% (2018: 4.41%) and the maturity date is 28
November 2031.
As at 31 December 2019 the balance of the Company’s subsidiary Xuwen Wind Power’s long-term
borrowings from the Bank of Communications Co. Ltd. was RMB 10985000 including long-term
borrowings due within one year of RMB 3027500 which was secured by the guarantee provided by
Zhanjiang Wind Power (2018: RMB 14012500 including long-term borrowings due within one year
amounted to RMB 3027500). The annual interest rate of the loan is 4.90% (2018: 4.90%) and the
maturity date is 5 December 2022.
As at 31 December 2019 GEGC provided guarantee for the Company’s long-term borrowings of RMB
1500000000 including long-term borrowings due within one year amounting to RMB 1500000000
(2018: RMB 1500000000) from Pacific Investment Management. The interest rate of the loan is
5.00% (2018: 5.00%) and the maturity date is 13 August 2020.
(c) As at 31 December 2019 the annual interest rate of long-term borrowings ranged from 1.30% to
4.94% (31 December 2018: from 1.30% to 5.00%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Bonds payable
31 December
2018
Reversal from
current portion of
non-current liabilities Other movements
Amortisation of
discounts or
premium
Transferred to
current portion of
non-current liabilities
31 December
2019
16 Pinghai Bond 01 (a) - 698667556 (1650943) 757853 - 697774466
12 Yudean Bond (b) 40269409 - - 30560 (40299969) -
First batch of middle-term notes issued by
Guangdong Electric Power
Development Co. Ltd. 2018 (c) 798057333 - - 800000 - 798857333
838326742 698667556 (1650943) 1588413 (40299969) 1496631799
(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%
starting 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 Pinghai Power in whole or in part based on the face value on the interest payment
date in the third interest-bearing year of the bond and adjust the coupon rate. As at the third interest-bearing date Pinghai Power had repaid zero
and the rest would be repaid on the maturity date 25 September 2021. Therefore the Company transferred the balance of current portion of
non-current liabilities to the debentures payable. The loan is subject to an annual interest rate of 3.10% starting from 26 September 2016 and
should be payable annually on simple interest. The loan is subject to an annual interest rate of 4.15% (originally 3.10%) starting from 26 September
2016 and should be payable annually on simple interest. Due to the adjustment in the coupon rate Pinghai Power paid a one-off underwriter’s fee
of RMB 1750000 (tax-exclusive amount of RMB 1650943) and the amortisation of interest amounted to RMB 757853 for the current year. As at
31 December 2019 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 4.23%
(31 December 2018: 3.18%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Debentures payable (Cont’d)
(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% starting
from 18 March 2013 and should 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 fifth 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. As at 31 December 2019 debentures
payable were measured at amortised cost using effective interest method with the effective interest
rate of 5.04%.(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 2019 the issue
expenses of RMB 1504000 were paid. The loan is subject to an annual interest rate of 4.19% starting
from 27 August 2018 and should be payable annually on simple interest. As at 31 December 2019
debentures payable were measured at amortised cost using effective interest method with the
effective interest rate of 4.29%.
(31) Long-term payables
31 December 2019 31 December 2018
Long-term payables (a) 2414256713 2221230656
Payables for specific projects (b) 71089532 90282593
2485346245 2311513249
(a) Long-term payables
31 December 2019 31 December 2018
Finance lease payable (i) 2657339603 2466113382
Payables for share repurchase (ii) 90000000 90000000
Less: Long-term payables due within one
year (333082890) (334882726)
2414256713 2221230656
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 payables (Cont’d)
(a) Long-term payables (Cont’d)
(i) The Group’s minimum finance lease payments are as follows:
Minimum finance lease payments 31 December 2019 31 December 2018
Within 1 year (inclusive) 427932313 356362496
1 to 2 years (inclusive) 239714412 334799400
2 to 3 years (inclusive) 557701919 164163053
Over 3 years 1971377855 1642040633
Sub-total 3196726499 2497365582
Less: Unrecognised finance charge (539386896) (31252200)
2657339603 2466113382
The above finance lease payable due within one year less unrecognised finance charge is listed in
Note 4(27).(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
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) 65322593 - (34321441) 31001152
Liquidation balance of enterprises
with diversified businesses (iii) - 15128380 - 15128380
90282593 15128380 (34321441) 71089532
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 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 to Lincang Energy subsidiary of the
Company. According to the document issued by Yunnan Water Conservancy & Hydropower
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. 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. As at 31
December 2019 such renovation project was partly completed and financial fund was speciallyaudited. According to Administrative Measures for the Segregation and Transfer of “Supply ofWater Electricity and Heat and Property Management” in the Employees Family Area of Provincial
State-owned Enterprises to Provincial Financial Subsidy Fund (Yue Cai Gong [2017] No. 222) and
Administrative Measures for Subsidy Fund of GEGC “supply of water electricity and heat andproperty management” expenses within the subsidy scope shall be covered by financial subsidy
fund subsidy fund of GEGC and self-raised fund at the proportion of 50% 30% and 20%
respectively and expenses not within the subsidy scope shall be borne by the Company.(iii) In 2019 the non-related electric power enterprises with diversified businesses transferred liquidation
balance of RMB 15128380 to Yuejiang Power subsidiary of the Company which was specifically
invested in its employees’ relocation training and pension funds.
(32) Deferred income
31 December
2018
Increase in the
current year
Decrease in the
current year
31 December
2019 Source
Government grants (a) 133043646 32137044 (25924177) 139256513
Asset-related
government
grants received
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(32) Deferred income (Cont’d)
(a) Government grants
Government grants
31 December
2018
Increase in the
current year
Decrease to
other income
31 December
2019
Asset related/
Income related
Compensation for relocation and renovation of Shajiao A
Zhenkou pump house 27806791 - (5561358) 22245433 Asset related
Special funds for #1-#3 generators’ desulfurisation project - 18456465 (742131) 17714334 Asset related
Energy saving grants 16750528 - (1479871) 15270657 Asset related
Tax refund for PRC-made equipment 14925350 - (2296208) 12629142 Asset related
Comprehensive technology upgrading for the energy saving of
1&2# generator units turbine by Zhongyue Energy 9230769 - (769231) 8461538 Asset related
Development and competitiveness funds from SASAC 8000000 - (666667) 7333333 Asset related
Second incentives for comprehensive and typical demonstration
projects under financial policies of energy saving 7650000 - (450000) 7200000 Asset related
Incentives for energy efficiency of power plant by Dongguan 8238437 - (1647687) 6590750 Asset related
Post rewarding subsidies for ultra-low emissions of 1&2#
generators 6912340 - (633191) 6279149 Asset related
Incentives for energy efficiency of power plant by Zhongyue
Energy - 4714025 (277296) 4436729 Asset related
Post rewarding subsidies for ultra-low emissions of designated
account of special fund in Maonan District of Maoming in
2018 4066154 - (338846) 3727308 Asset related
Incentives for energy efficiency of power plant by Zhanjiang - 3368400 (306218) 3062182 Asset related
Dianbai Reshui wind power plant project 3000000 - - 3000000 Asset related
Expansion on flow reconstruction project 3625048 - (725010) 2900038 Asset related
Shajiao A - 2016 central finance energy saving funds 3528123 - (705624) 2822499 Asset related
Government subsidies from the financial treasury payment
centre of Qujiang District Shaoguan 2927354 - (276146) 2651208 Asset related
Special prize funds of recycle economy and energy saving by
Shenzhen 2460655 - (242500) 2218155 Asset related
Energy saving funds - 2731306 (546261) 2185045 Asset related
Others 13922097 2866848 (8259932) 8529013 Asset related
133043646 32137044 (25924177) 139256513
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(33) Long-term employee benefits payable
31 December 2019 31 December 2018
Termination benefits (a) 131071031 114331088
Other long-term employee benefits payable (b) 42309058 46943615
Less: Payable within one year (38391229) (38361315)
134988860 122913388
The early retirement benefits payable within one year are included in the employee benefits
payable (Note 4(24)).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 2019 31 December 2018
Discount rates 4.27% 4.27%
Early retirement benefits recognised in profit or loss for the current period:
2019 2018
General and administrative expenses 59459281 36539748
(a) According to the Group’s regulations for early retirement of employees the employees whose early
retirement requests are approved by the Group could have 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 2019 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% (2018: 4.27%) of the same
period. As at 31 December 2019 the Group accrued a termination benefits of RMB 131071031
(31 December 2018: RMB 114331088) and recognised it in long-term employee benefits payable.
The actual termination benefits due within one year totalling RMB 29071494 (31 December 2018:
RMB 26936158) are recognised in employee benefits payable.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(33) 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 2019 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% (2018:
4.27%) as discount rate. As at 31 December 2019 the Group accrued other long-term employee
benefits payable of RMB 42309058 (31 December 2018: RMB 46943615) with actual payment
of other long-term employee benefits payable due within one year of RMB 9319735 (31 December
2018: RMB 11425157) recognised in employee benefits payable.
(34) Other non-current liabilities
31 December 2019 31 December 2018
Capital injection 216405569 166405569
In 2017 the Company’s subsidiary Yuejiang Power received a capital injection of RMB 16405569
from minority shareholders. As at 31 December 2019 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 Company’s subsidiaries Yangjiang Wind 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 2019 such capital injection was recorded in other
non-current liabilities as the registration for changes of business license had not been completed.
In 2019 the Group’s subsidiary Zhuhai Wind Power received a capital injection of RMB 50000000
from GEGC. The capital will be used for Zhuhai Jinwan Electric offshore wind power project. As at
31 December 2019 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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Share capital
31 December 2018
Movements for the current year
31 December 2019
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 5659 - - - - - 5659
Shares not subject to trading restriction
- RMB-dominated ordinary shares 2553907040 - - - - - 2553907040
- Domestically-listed foreign shares 798408000 - - - - - 798408000
5250283986 - - - - - 5250283986
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
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(36) Capital surplus
31 December
2018
Increase in the
current year
Decrease in the
current year
31 December
2019
Share capital premium (a) 4544074067 - (115014) 4543959053
Revaluation reserve 119593718 - - 119593718
Investment from GEGC 395000000 - - 395000000
Share of interests in the investee
in proportion to the
shareholding (b) 20785182 - (5813698) 14971484
Transfer of capital surplus
recognised under the previous
accounting system 20474592 - - 20474592
Others 2919327 - - 2919327
5102846886 - (5928712) 5096918174
31 December
2017
Increase in the
current year
Decrease in the
current year
31 December
2018
Share capital premium 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
(a) In 2019 Guangdong Wind Power invested in Huilai Wind Power with cash consideration of RMB
23000000 with its shareholding ratio raising from 83.33% to 89.83%. The difference between the
paid consideration and the increased subsidiary’s shares of net assets calculated based on
proportion of equity acquired amounting to RMB 115014 was deducted against capital surplus.Meanwhile the minority interests were increased by RMB 115014.(b) In 2019 capital surplus of associates calculated based on proportion of equity acquired decreased
by RMB 5813698.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(37) Other comprehensive income
Other comprehensive income in the balance sheet Other comprehensive income in the income statement for the year ended 31 December 2019
31 December
2018
Changes in
accounting
policies
1 January
2019
Attributable to the
parent company
after tax
31 December
2019
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
not be subsequently reclassified to
profit or loss
Other comprehensive income that
cannot be transferred to profit or
loss under equity method 21753244 - 21753244 2110342 23863586 2110342 - - 2110342 -
Changes in fair value of
investments in other equity
instruments - 528256889 528256889 1123802101 1652058990 1498402802 - (374600701) 1123802101 -
Other comprehensive income that will
be subsequently reclassified to
profit or loss
Gains or losses arising from
changes in fair value of
available-for-sale financial assets 528256889 (528256889) - - - - - - - -
Other comprehensive income that
can be transferred to profit or loss
under equity method - - - 220468 220468 220468 - - 220468 -
550010133 - 550010133 1126132911 1676143044 1500733612 - (374600701) 1126132911 -
Other comprehensive income in the balance sheet Other comprehensive income in the 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
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
not be subsequently reclassified to
profit or loss
Other comprehensive income that
cannot be transferred to profit or
loss under equity method 21753244 - 21753244 - - - - -
Other comprehensive income that will
be subsequently reclassified to
profit or loss
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 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(38) Surplus reserve
31 December
2018
Increase in the
current year
Decrease in the
current year
31 December
2019
Statutory surplus reserve 2711362444 117603557 - 2828966001
Discretionary surplus
reserve 5122792699 294008893 - 5416801592
7834155143 411612450 - 8245767593
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
In accordance with the Company Law of the People’s Republic of China 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 21 May 2019 the Company
appropriated 10% of net profit for 2018 amounting to RMB 117603557 (2018: 10% of net profit for
2017 amounting to RMB 69654691) to the statutory surplus reserve. Meanwhile the Company
appropriated 25% of net profit for 2018 amounting to RMB 294008893 (2018: 25% of net profit for
2017 amounting to RMB 174136728) to the discretionary surplus reserve.
(39) Undistributed profits
2019 2018
Undistributed profits at the beginning of the
year 5490006140 5713290735
Add: Net profit attributable to equity owners
of the Company 1146767033 474461997
Less: Appropriation to statutory surplus
reserve (Note 4(38)) (117603557) (69654691)
Appropriation to discretionary surplus
reserve (Note 4(38)) (294008893) (174136728)
Dividends payable on ordinary shares (a) (315017039) (420022719)
Others (b) (1015404) (33932454)
Undistributed profits at the end of the year 5909128280 5490006140
(a) In accordance with the resolution at the shareholders’ meeting dated 21 May 2019 the Company
proposed a cash dividend to the shareholders at RMB 0.6 per 10 shares amounting to RMB
315017039 calculated by 5250283986 issued shares.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(39) Undistributed profits (Cont’d)(b) In 2019 segregation and transfer expenses of associates related to “supply of water power andheat and property management” calculated based on proportion of equity acquired were recognised
as a reduction of RMB 1015404 to undisturbed profits. In 2018 the assets transferred by the
Group’s subsidiary without compensation for the Asset 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 profits at the end of the year
The surplus reserve attributable to the parent company appropriated by subsidiaries this year was
RMB 144642230 (2018: RMB 104824162).
As at 31 December 2019 the undistributed profits attributable to the parent company included an
appropriation of RMB 2463278951 (31 December 2018: RMB 2318515265) to surplus reserve
made by the Company’s subsidiaries.
(40) Revenue and cost of sales:
2019 2018
Revenue from main operations 29018275346 27125955662
Revenue from other operations 341879804 282558516
29360155150 27408514178
2019 2018
Cost of sales from main operations 24468499397 24236414355
Cost of sales from other operations 12204475 10302225
24480703872 24246716580
(a) Revenue and cost of sale from main operations
2019 2018
Revenue from
main operations
Cost of sales
from main
operations
Revenue from
main operations
Cost of sales
from main
operations
Revenue from sales of
electricity 28811365634 24303147059 26949774763 24099233129
Revenue from steam 137136069 100553481 126032622 87916412
Rendering of services 69773643 64798857 50148277 49264814
29018275346 24468499397 27125955662 24236414355
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(40) Revenue and cost of sales (Cont’d)
(b) Revenue and cost of sales from other operations
2019 2018
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 270692961 1123900 240230510 1539166
Rental income 25092388 3910335 20343421 4088745
Revenue from sales of
materials 2246472 2455349 1324637 1155075
Others 43847983 4714891 20659948 3519239
341879804 12204475 282558516 10302225
Information for revenue cost of sales and profit from main operating activities are included in
segment reporting.
(41) Taxes and surcharges
2019 2018 Tax base
Real estate tax 74173022 69351272 Note 3
City maintenance and construction tax 69304761 62122786 Note 3
Educational surcharge 53642928 50942570 Note 3
Land use tax 22581711 22277871
Stamp tax 16759160 17440628
Environmental protection tax 13045249 15576704 Note 3
Others 214930 258095
249721761 237969926
(42) Selling and distribution expenses
2019 2018
Labour cost 30147630 15734977
Labour insurance 6141152 3419927
Entertainment expenses 2242376 2450910
Travelling expenses 1532592 111990
Rental expenses 700908 -
Depreciation expenses (Note 4(13)) 434425 168621
Others 2589679 3497436
43788762 25383861
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(43) General and administrative expenses
2019 2018
Labour cost 318985080 279543009
Production preparation cost (a) 150664439 -
Labour insurance 79937050 88735929
Amortisation of intangible assets 52313721 53189360
Depreciation expenses (Note 4(12) (13)) 50801562 45795858
Fire safety expenses 44166755 47034725
Property management expenses 29057707 26313608
Office expenses 23737171 20613680
Agency fee 19084853 18257095
Rental expenses 13505144 10992313
Maintenance cost 12756523 9894228
Afforestation fee 8831336 9215763
Traffic expenses 7893793 8799661
Travelling expenses 7307843 6415526
Labour costs 5426711 5769769
Entertainment expenses 4009303 3810169
Insurance expenses 3316306 3465634
Expenses on board meetings 533663 719286
Sewage charges 129605 687529
Others 42182303 49096796
874640868 688349938
(a) In 2019 production preparation cost for Bohe Coal subsidiary of the Company amounted to RMB
150664439 mainly including related costs incurred for induction training and pre-construction.
(44) Research and development expenses
2019 2018
Outsourced research and development
expenses 8549423 2419679
System maintenance fees 961443 2624097
Others 192736 -
9703602 5043776
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(45) Financial expenses
2019 2018
Interest expenses of discounted notes 1410457651 1451841303
Less: Capitalised interest (179819947) (141335812)
Sub-total of interest expenses 1230637704 1310505491
Amortisation of unrecognised finance charge 57321674 91431485
Amortisation of discounts or premium of
debentures payable (Note 4(30)) 1588413 2840111
Less: Interest income (66836652) (63471806)
Exchange losses - net 1353572 4859137
Bank charges and others 6251130 4320833
1230315841 1350485251
(46) Other income
2019 2018
Asset related/
Income related
Revenue from VAT refund upon collection 8787584 9219882 Income related
Compensation for relocation and renovation
of Shajiao A Zhenkou pump house 5561358 753231 Asset related
Enterprise economic contribution rewards for
Nansha headquarters 3777300 10774300 Income related
Tax refund for PRC-made equipment 2296208 2296209 Asset related
Energy saving funds 1479871 4112576 Asset related
Income from refund of commissions for
individual income tax 1083959 1179059 Income related
Desulfurisation project Shajiao A 5#
generator unit - 3076924 Asset related
Energy saving funds used as policy
liquidation subsidies in previous years - 4165231 Asset related
Special funds for differential electricity price - 1026886 Asset related
Financial subsidy fund by Zhanjiang
Government - 3050000 Income related
Prize for entry of high and new technological
enterprise cultivation library granted by
the Department of Finance of Zhanjiang
Chikan Office - 3537993 Income related
Other government grants related to asset 16586740 6545279 Asset related
Other government grants related to income 2498633 3013277 Income related
42071653 52750847
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(47) Investment income
2019 2018
Investment income from long-term equity
investment under equity method 64909255 488203462
Investment income earned during the holding
period of other equity instruments(Note 4(9)) 58580379 -
Investment income earned during the holding
period of available-for-sale financial assets - 49140042
Recovery of interest income from written off
other receivables (Note 4(48)(a)) 1224342 -
Others 827264 359466
125541240 537702970
The Group obtains returns from investment without any significant restrictions.
(48) Reversal of credit impairment losses
2019 2018
Recovery of written off other receivables (a) 48647647 -
Reversal of losses on bad debts of accounts
receivable (Note 4(2)(c)) 2288 -
Losses on bad debts of other receivables
(Note 4(4)(c)) (2301051) -
46348884 -
(a) On 16 January 1999 Guangdong International Trust declared bankruptcy the Group recognised
its share in bankruptcy liabilities of RMB 61297805 including interest payable of RMB 1297805
calculated based on debtors’ claim proportion in Guangdong International Trust. After deducting
settlement payment of RMB 7674485 received from 2000 to 2003 as at 2 December 2003 the
Group made provision for bad debts of RMB 52325515 on outstanding principal and wrote off
such receivables in 2003. From 2008 to 2010 the Group had successively recovered total property
distribution payments of RMB 3677868 from the bankruptcy and liquidation team of Guangdong
International Trust.
In 2019 the Group received a total property distribution payment of RMB 49945452 from the
bankruptcy and liquidation team of Guangdong International Trust including interest of RMB
1297805 with tax-exclusive amount of RMB 1224342 included in investment income. The
Group thus reversed credit impairment losses of RMB 48647647 in 2019.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(49) Asset impairment losses
2019 2018
Impairment losses of long-term equity investments
(Note 4(11)(b)) 71317168 -
Impairment losses of fixed assets (Note 13(a)(iii)) 54133177 151136187
Impairment losses of construction in progress
(Note 4(14)(a)(ii)) 35211238 13816430
Impairment losses of construction materials (Note
4(14)(b)) 729603 -
Losses on decline in the value of inventories (Note
4(5)(b)) 530152 2136875
(Reversal of)/Losses on impairment of advances
to suppliers (Note 4(3)(b)) (190000) 305001
Losses on bad debts of accounts receivable - 157709
Losses on bad debts of other receivables - 2598328
Impairment losses of intangible assets - 56502373
Impairment losses of goodwill - 25036894
161731338 251689797
(50) Gains on disposals of assets
2019 2018
Amount recognised
in non-recurring profit or
loss in 2019
Gains/(Losses) on disposals of fixed
assets (10576) 1572097 (10576)
Gains on disposals of intangible
assets (Note 4(4)(a)) 29476253 - 29476253
Losses on disposals of construction in
progress (8962253) - (8962253)
20503424 1572097 20503424
(51) Non-operating income
2019 2018
Amount recognised in
non-recurring profit or
loss in 2019
Gains on scraping of fixed assets 6789851 2245329 6789851
Payables unnecessary to be repaid 6441146 583286 6441146
Income from penalty and fine 6329626 1599995 6329626
Claims and compensation income 4375102 45458540 4375102
Gains on donations - 36986954 -
Others 9300994 2582133 9300994
33236719 89456237 33236719
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(52) Non-operating expenses
2019 2018
Amount recognised in
non-recurring profit or
loss in 2019
Losses on scrapping of
non-current assets 14970579 21457918 14970579
Expenses borne by enterprisesunder the “supply of waterelectricity and heat and propertymanagement” renovation project
(Note 4(31)(b)(ii)) 7885758 - 7885758
Penalties and overdue fines 4449214 12679505 4449214
Losses on scrapping of inventories 3360365 1160993 3360365
Donation expenses 643072 2935000 643072
Others 702139 926114 702139
32011127 39159530 32011127
(53) Income tax expenses
2019 2018
Current income tax calculated based on tax law
and related regulations 673284479 476327171
Deferred income tax 64780530 (141226938)
738065009 335100233
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:
2019 2018
Total profit 2545239899 1245197670
Income tax calculated at applicable tax rates 636309975 311299418
Effect of preferential tax rates of subsidiaries (58231083) (37729056)
Income not subject to tax (32184480) (134879733)
Costs expenses and losses not deductible for tax
purposes 25250185 17227646
Deductible losses for which no deferred tax asset
was recognised in the current period 38808803 141893452
Transfer-out of deductible losses for which
deferred tax asset was recognised 47877267 -
Deductible temporary differences for which no
deferred tax asset was recognised in the
current period 91854715 58065184
Utilisation of deductible losses for which no
deferred tax asset was recognised in previous
periods (197303) -
Utilisation of deductible temporary differences for
which no deferred tax asset was recognised in
previous periods (8146091) (17039919)
Effect of other deductible expenses (484255) (339410)
Tax filing differences of income tax in prior years (2792724) (3397349)
Income tax expenses 738065009 335100233
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(54) 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
2019 2018
Consolidated net profit attributable to ordinary
shareholders of the parent company 1146767033 474461997
Weighted average number of outstanding ordinary
shares of the Company 5250283986 5250283986
Basic earnings per share 0.22 0.09
Including:
- Basic earnings per share from continuing
operations 0.22 0.09
- 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 2019 there were no dilutive potential
ordinary shares (2018: Nil) and hence diluted earnings per share is equal to basic earnings per
share.
(55) Expenses by nature
The cost of sales selling and distribution expenses general and administrative expenses and
research and development expenses in the income statement are listed as follows by nature:
2019 2018
Consumed fuel and low value consumables etc. 17891273988 18171718721
Depreciation and amortisation expenses 3783767872 3440501770
Employee benefits 1886271386 1779288108
Repair charges 1006918706 928420266
Production preparation cost 150664439 -
Insurance expenses 103594103 103099272
Sewage and sanitary charges 61671728 63437485
Fire safety expenses 48396661 51242734
Transaction expenses 45683532 55207987
Property management expenses 33041303 31646545
Office expenses 26894609 26262942
Traffic expenses 25677325 33298085
Rental expenses 21478872 20638470
Others 323502580 260731770
25408837104 24965494155
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(56) Notes to the cash flow statement
(a) Cash received relating to other operating activities
2019 2018
Interest income 64827152 59564119
Government grants 34698782 38263746
Rental income 25092388 21564026
Liquidation balance of enterprises with
diversified businesses 15128380 -
Claims and compensation income 11704759 -
Others 43877306 18740883
195328767 138132774
(b) Cash paid relating to other operating activities
2019 2018
Administrative penalty and overdue fine 176593564 -
Insurance expenses 103594103 103099272
Sewage and sanitary charges 61671728 63437485
Fire safety expenses 48396661 51242734
Transaction expenses 45683532 55207987
Expenses relating to supply of water power
and heat and property management 42207199 9699285
Utility fees 39491941 38924305
Property management expenses 33041303 31646545
Office expenses 26894609 26262942
Traffic expenses 25677325 33298085
Rental expenses 21478872 20638470
Others 167048284 149757359
791779121 583214469
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(56) Notes to the cash flow statement (Cont’d)
(c) Cash received relating to other investing activities
2019 2018
Cash at bank and on hand acquired from Maoming
Zhenneng’s equity transaction with Maoming
Thermal - 161670884
(d) Cash received relating to other financing activities
2019 2018
Cash received from financing sales and leaseback 100000000 900000000
(e) Cash paid relating to other financing activities
2019 2018
Cash paid for finance leases 293244563 426817014
Agency fee for debenture issuance 971697 -
Payment of capital withdrawal to minority
shareholders by Yuejia Electric - 136080000
294216260 562897014
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(57) 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
2019 2018
Net profit 1807174890 910097437
Add: Provision for asset impairment losses 161731338 251689797
Reversal of credit impairment losses (46348884) -
Depreciation of fixed assets 3726076512 3381585791
Depreciation of investment properties 2085161 701435
Amortisation of intangible assets 52313721 53189360
Amortisation of long-term prepaid
expenses 3292478 5025184
Amortisation of deferred income (25924177) (22078706)
Gains on disposal of fixed assets
intangible assets and other
long-term assets (12322696) (27805508)
Financial expenses 1290901363 1409636224
Investment income (125541240) (537702970)
Decrease/(Increase) in deferred tax
items 64780530 (141226938)
(Increase)/Decrease in inventories (335772151) 43680628
Decrease/(Increase) in operating
receivables 611828991 (360270970)
Increase in operating payables 1098407276 1064707342
Others - (31291750)
Net cash flows from operating activities 8272683112 5999936356
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(57) 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
2019 2018
Inventory procurement payment made by
acceptance notes 1364236650 941161107
Long-term assets held under finance leases 425283800 240830581
Long-term assets of finance lease through
sales and leaseback 100000000 900000000
Non-monetary asset acquired from Maoming
Zhenneng’s equity transaction with
Maoming Thermal - 267343152
1889520450 2349334840
Net increase/(decrease) in cash and cash equivalents
2019 2018
Cash at the end of the year 5079641969 5570382892
Less: Cash at the beginning of the year (5570382892) (4996580490)
Net (decrease)/increase in cash and cash
equivalents (490740923) 573802402
(b) Cash and cash equivalents
31 December 2019 31 December 2018
Cash at bank and on hand 5081641969 5574382892
Less: Restricted cash at bank (2000000) (4000000)
Cash and cash equivalents at the end of
the year (i) 5079641969 5570382892
(i) Cash and cash equivalents at the end of the year
31 December 2019 31 December 2018
Cash on hand 25114 31413
Cash at bank that can be readily drawn on
demand 5079616855 5570351479
5079641969 5570382892
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(58) Monetary items denominated in foreign currency
31 December 2019
Balance in
foreign currencies Exchange rate Balance in RMB
Cash at bank and on hand -
USD 190 6.9762 1324
HKD 11541 0.8958 10339
11663
Long-term borrowings -
USD 8947131 6.9762 62416979
EUR 136115 7.8155 1063810
63480789
Current portion of non-current
liabilities -
USD 1089497 6.9762 7600549
EUR 314641 7.8155 2459075
10059624
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
Guangdong Yudean Binhai
Bay Energy Co. Ltd.
(“Binhai Bay Company”)
Dongguan
Guangdong
Province
Dongguan
Guangdong
Province
Electricity
generation 30000000 100.00% Investment
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities
(1) Interests 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
Guangdong 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
Shenzhen Guangqian Electric Co. Ltd.(“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
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Cont’d)
(1) Interests 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
Pinghai Power (ii) 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% InvestmentGuangdong Yudean Pingyuan Wind Power Co. Ltd. (“PingyuanWind Power”) Meizhou Meizhou Electricity generation - 100.00% InvestmentGuangdong Yudean Heping Wind Power Co. Ltd. (“Heping WindPower”) Heyuan Heyuan Electricity generation - 100.00% Investment
Huilai Wind Power Jieyang Jieyang Electricity generation - 89.83%
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% - Investment
Hunan Xupu Yuefeng New Energy Co. Ltd. (“Xupu Yuefeng”) Huaihua Hunan Province
Xupu County Huaihua Hunan
Province Electricity generation - 100.00% InvestmentGuangxi Wuxuan Yuefeng New Energy Co. Ltd.(“WuxuanYuefeng”)
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
Guangdong Yudean Zhencheng Comprehensive Energy Co. Ltd.(“Zhencheng Comprehensive”) (i) Maoming Maoming Electricity generation - 37.23% Investment
Binhai Bay Company Dongguan Dongguan Electricity generation 100.00% - 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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Cont’d)
(1) Interests 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
Shareholding of minority
shareholders (%)
Gains or losses
attributable to minority
shareholders in 2019
Dividends distributed to
minority shareholders in 2019
Minority interests
as at 31 December
2019
Bohe Coal 33.00% (42179415) - 1440940454
Jinghai Power 35.00% 145504280 37316905 1336439467
Honghaiwan Power 35.00% 152155923 58421446 1249439286
Pinghai Power 55.00% 115887819 183673688 1065026177
Red Bay Power 24.00% 67958573 59628829 989403057
Maoming Zhenneng 53.46% 15807136 - 716362380
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Cont’d)
(1) Interests 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 2019 31 December 2018
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
Bohe Coal 406450976 8090725274 8497176250 1243204501 2887485525 4130690026 605153826 6838951897 7444105723 1912681712 2437121377 4349803089
Jinghai Power 944179710 7485923562 8430103272 1944115146 2667589649 4611704795 1204643294 7994284373 9198927667 2607699843 3081936133 5689635976
Honghaiwan Power 790682866 5336542066 6127224932 1388119251 1169279149 2557398400 943046924 5759863813 6702910737 1582252157 1818644840 3400896997
Pinghai Power 1025618654 4139133331 5164751985 1038669288 2189671466 3228340754 1213521626 4504301232 5717822858 1167600036 2490564556 3658164592
Red Bay Power 2933345468 1360939980 4294285448 149489138 22283574 171772712 2970589465 1477137297 4447726762 332108967 27812323 359921290
Maoming Zhenneng 520526431 2397789805 2918316236 1155015192 423304075 1578319267 424289071 2608341517 3032630588 1169249659 552952116 1722201775
2019 2018
Revenue Net (loss)/profit
Total comprehensive
income
Cash flows from
operating activities Revenue Net profit/(loss)
Total comprehensive
income
Cash flows from
operating activities
Bohe Coal 773421 (127816410) (127816410) (55199499) 591631 (18848423) (18848423) (14288706)
Jinghai Power 4796679483 415726514 415726514 1641051136 4871729888 118466364 118466364 1116414293
Honghaiwan Power 3841846212 434731209 434731209 1066208056 4089089204 230336446 230336446 847911932
Pinghai Power 3029136753 210705126 210705126 1125527395 3409291625 447090284 447090284 780998268
Red Bay Power 1860318943 283160720 283160720 341541041 1997634196 234112612 234112612 421420713
Maoming Zhenneng 1566406325 29568156 29568156 376262049 1552628327 (98577590) (98577590) 264329442
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests 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 ventures -
Industry fuel
Guangzhou
Guangdong
Guangzhou
Guangdong Fuel trading Yes 50.00% -
Associates -
Shanxi Yudean
Energy
Taiyuan
Shanxi
Taiyuan
Shanxi
Mining power
generation Yes 40.00% -
Yudean Shipping
Shenzhen
Guangdong
Shenzhen
Guangdong
Transportation
port operations Yes 35.00% -
Energy Group
Finance
Company
Guangzhou
Guangdong
Guangzhou
Guangdong Finance Yes 25.00% -
Taishan Electric
Taishan
Guangdong
Taishan
Guangdong
Power
generation Yes 20.00% -
Investments in associates are accounted for using the equity method.(b) Summarised financial information of significant joint ventures
31 December 2019 31 December 2018
Industry fuel Industry fuel
Current assets 2525548290 2925805788
Non-current assets 236455032 229601671
Total assets 2762003322 3155407459
Current liabilities 1523551251 1948258211
Non-current liabilities 795464 750000
Total liabilities 1524346715 1949008211
Minority interests 5990551 -
Attributable to shareholders of the parent company 1231666056 1206399248
Shares of net assets in proportion to shareholding
(i) 615833028 603199624
Adjustments (614728) (614728)
Carrying amount of equity investment in joint
ventures 615218300 602584896
Revenue 18542018582 21313952451
Net profit 161363606 144800960
Including: Attributable to the parent company 161373052 144800960
Other comprehensive income - -
Including: Attributable to the parent company - -
Total comprehensive income 161363606 144800960
Dividends received from joint ventures by the Group
for the current year 68053122 75493986
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Cont’d)
(2) Interests in joint ventures and associates (Cont’d)
(b) Summarised financial information of significant joint ventures (Cont’d)
(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.(c) Summarised financial information of significant associates
31 December 2019 31 December 2018
Shanxi Yudean
Energy
Yudean
Shipping
Shanxi Yudean
Energy
Yudean
Shipping
Current assets 493527957 677384957 237368764 679812323
Non-current assets 4018816040 2301371982 3605638396 4059701902
Total assets 4512343997 2978756939 3843007160 4739514225
Current liabilities 227879801 1486497588 55783287 1536587510
Non-current liabilities 167617393 209774800 185614684 531180002
Total liabilities 395497194 1696272388 241397971 2067767512
Minority interests 6337937 - 1134674 -
Attributable to shareholders
of the parent company 4110508866 1282484551 3600474515 2648533400
Shares of net assets in
proportion to shareholding (i) 1644203546 448869593 1440189806 935111350
Adjustments
- Goodwill - - - -
Carrying amount of equity
investment in associates 1644203546 448869593 1440189806 935111350
Revenue 7251090 1525757019 3689284 1730790827
Net profit/(loss) 610019213 (1360556144) 569420122 5208435
Including: Attributable to
the parent
company 610034351 (1360556144) 569371400 5208435
Other comprehensive
income - 615287 - -
Including: Attributable to
the parent
company - 615287 - -
Total comprehensive income 610019213 (1359940857) 569420122 5208435
Dividends received from
associates by the Group
for the current year 40000000 - 4000000 8469538
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Cont’d)
(2) Interests in joint ventures and associates (Cont’d)
(c) Summarised financial information of significant associates (Cont'd):
31 December 2019 31 December 2018
Energy Group
Finance
Company Taishan Electric
Energy Group
Finance
Company Taishan Electric
Current assets 5476170472 992068417 8618449490 999098037
Non-current assets 14966723063 11150344536 13958043610 12126348270
Total assets 20442893535 12142412953 22576493100 13125446307
Current liabilities 16528663938 1324769339 19713970097 2373171786
Non-current liabilities - 390000000 - 905200000
Total liabilities 16528663938 1714769339 19713970097 3278371786
Minority interests - 863919 - 1029541
Attributable to shareholders
of the parent company 3914229597 10426779695 2862523003 9846044980
Shares of net assets based
on shareholding (i) 978557399 2085355939 715630751 1969208996
Adjustments
- Goodwill 13325000 - 13325000 -
Carrying amount of equity
investment in associates 991882399 2085355939 728955751 1969208996
Revenue 713981963 6549854533 720277335 8171917086
Net profit 308292609 580521643 341902450 646660665
Including: Attributable to
the parent
company 308292609 580709129 341902450 646576935
Other comprehensive
income - 25585 - -
Including: Attributable to
the parent
company - 25585 - -
Total comprehensive
income 308292609 580547228 341902450 646660665
Dividends received from
associates by the Group
for the current year 64106710 - 57221066 121582000
(i) Share of asset is calculated in proportion to the 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 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interests in other entities (Cont’d)
(2) Interests in joint ventures and associates (Cont’d)
(d) Summarised information of insignificant associates
2019 2018
Associates:
Aggregated carrying amount of investments 670254785 719083955
Aggregate for the following items in
proportion to the shareholding
Net profit (i) 23188661 70091971
Other comprehensive income (i) 2110342 -
Total comprehensive income 25299003 70091971
(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
As the Group's operating revenue expenses assets and liabilities are primarily associated with
sale of electric power and other related products the Group's management taking the sales of
electric power as a whole business periodically obtains accounting information relating to financial
status operating results and cash flow for assessment. Therefore there is only the electric power
segment in the Group.The Group’s operating income derives from the development and operation of electric plants in
China and all assets are within China.
In 2019 the revenue earned by the Group’s power plants from Southern Power Grid Company
amounted to RMB 28811365634 (2018: RMB 26949774763) which took up 98.13% of the
Group’s operating income (2018: 98.33%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions
(1) 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
The 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
2018
Increase in the
current year
Decrease in the
current year
31 December
2019
GEGC 23000000000 - - 23000000000
(c) The percentages of shareholding and voting rights in the Company held by the parent company
31 December 2019 31 December 2018
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).
(3) Information of joint ventures and associates
Apart from material joint ventures and associates disclosed in Note 6 other joint ventures and
associates that involved in related party transactions with the Group are listed as follows:
Name of entity Relationship with the Group
Yudean Property Self-Insurance Associate
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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
Relationship with the Group
Shaoguan Electric Power Plant Controlled by GEGC
Guangdong Energy Group 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 GEGCGuangdong Yudean Information Technology Co. Ltd. (“YudeanTechnology”) Controlled by GEGC
Guangdong Yudean Property Investment Co. Ltd. (“Yudean PI”) Controlled by GEGC
Yudean Environmental Controlled by GEGC
Shenzhen Tianxin Insurance Broker Co. Ltd. (“Shenzhen Tianxin”) Controlled by GEGCGuangzhou Huangpu Power Engineering Co. Ltd. (“Huangpu Power
Engineering”) Controlled by GEGC
Guangzhou Huangpu Yuehua Power Plant Human Resources Co.Ltd. (“Huangpu Yuehua Human Resources”) Controlled by GEGC
Guangdong Yuehua Power Co. Ltd. (“Yuehua Power”) Controlled by GEGC
Guangdong Yudean Yunhe Power Co. Ltd. (“Yunhe Power”) Controlled by GEGC
Guangdong Yuelong Power Generation Co. Ltd. (“Yuelong Power”) Controlled by GEGCGuangdong Yudean Zhongshan Thermal Power Plant (“ZhongshanThermal”) Controlled by GEGCGuangdong Port of Yangjiang Harbour Service Co. Ltd. (“Port ofYangjiang”) 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 GEGC
Guangdong Xinhui Power Generation Co. Ltd. (“Xinhui Power”) Controlled by GEGCGuangdong Energy Group Natural Gas Co. Ltd. (“Guangdong
Energy Natural Gas”) 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 GEGCGuangdong Yudean Qingxi Power Generation Co. Ltd. (“QingxiPower”) Controlled by GEGCGuangdong Yudean Liuxihe Power Generation Co. Ltd. (“LiuxihePower”) Controlled by GEGCGuangdong 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. (“Huizhou New
Energy”) Controlled by GEGCGuangdong Huizhou Liquefied Natural Gas Co. Ltd. (“LiquefiedNatural Gas”) Controlled by GEGC
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont'd)
(4) Other related parties (Cont'd)
Relationship with the Group
Guangdong Yudean Nanshui Power Generation Co. Ltd.(“Nanshui Power”) Controlled by GEGC
Guangdong Yudean Environmental Protection Materials Co.Ltd. (“Environmental Protection Materials”) Controlled by GEGCShaoguan Qujiang Yudean New Energy Co. Ltd. (“QujiangYudean New Energy”) Controlled by GEGC
Yudean Leasing Controlled by GEGC
(5) Related party transactions
(a) Purchase and sales of goods and rendering and receiving of service
Purchase of goods and receiving of services:
Related parties
Type of related
party transaction
Pricing policy of
related party
transaction 2019 2018
Industry fuel Purchase of fuel Agreement price 12572055713 14352059858
Guangdong Energy
Natural Gas Purchase of fuel Agreement price 2244739292 497452121
Yudean
Environmental
Purchase of
materials Agreement price 170610784 148417712
Yudean Property
Self-Insurance
Receipt of
insurance services Agreement price 41085804 19958353
Yudean PM
Receipt of property
services Agreement price 32994779 31653612
Yudean Shipping
Receipt of tug
services Agreement price 25634906 23213805
Huangpu Power
Engineering
Receipt of
maintenance and
repair services Agreement price 23488279 16989393
Port of Yangjiang
Receipt of tug
services Agreement price 6862044 9247217
Yudean Technology
Receipt of
management
service Agreement price 3476417 3906107
Yudean PI
Receipt of
management
service Agreement price 823550 40541
Yuehua Power Purchase of goods Agreement price 672348 -
Huangpu Yuehua
Human Resources
Receipt of training
services Agreement price 503322 -
Changtan Power
Receipt of
management
service Agreement price 452830 -
Huangpu Yuehua
Human Resources
Receipt of human
resource
outsourcing
services Agreement price - 5828481
15123400068 15108767200
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 service (Cont'd)
Sales of goods and rendering of services:
Related parties
Type of related party
transaction
Pricing policy of related party
transaction 2019 2018
Yudean Environmental
Revenue from sales of
by-products Agreement price 216576868 189652273
Shajiao C
Provision of maintenance and
repair services Agreement price 37070262 30485136
Yunhe Power Income from transferring coal Agreement price 12285018 8194149
Yunhe Power
Provision of maintenance and
repair services Agreement price 8502922 8368980
Xinhui Power
Provision of maintenance and
repair services Agreement price 8212669 -
Zhongshan Thermal
Provision of maintenance and
repair services Agreement price 4856637 -
Qujiang Yudean New
Energy
Provision of maintenance and
repair services Agreement price 2925656 -
GEGC Provision of custody services Agreement price 2311321 2070690
Yudean New Energy
Provision of maintenance and
repair services Agreement price 1662684 923603
Zhuhai Jinwan Electric
Provision of maintenance and
repair services Agreement price 928889 2934438
Huizhou New Energy
Provision of maintenance and
repair services Agreement price 589224 235983
Liquefied Natural Gas
Provision of management
services Agreement price 336826 -
Environmental
Protection Materials
Provision of maintenance and
repair services Agreement price 188522 -
Zhongshan Thermal Provision of training services Agreement price 55175 435144
Xinhui Power Provision of training services Agreement price 20806 526038
Yuelong Power Provision of training services Agreement price - 32004
Yuehua Power Provision of training services Agreement price - 20246
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 Electric 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
296523479 244042540
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 2019 2018
Zhuhai Jinwan
Electric 101801931 121802871
Yunhe Power 89787026 38780195
Yuelong Power 20526897 11951043
Yuehua Power 14242042 26059755
Guanghe Power 3357310 127274483
229715206 325868347
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
2019
Leasing payment
recognised in
2018
Yudean PI Housing rental 7847192 8145254
Yudean PM Housing rental 2814448 -
Yudean PI Billboard rental 760686 776478
11422326 8921732
The Group as the lessor:
Name of lessee
Type of the leased
assets
Leasing income
recognised in
2019
Leasing income
recognised in
2018
Yudean Shipping Housing rental 572844 39077
Yudean PM Housing rental 228986 192000
Qujiang Yudean New Energy Housing lease 31615 -
833445 231077
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)(d) Lending among related parties
(i) According to the 2019 Framework Agreement on Financial Services between the Company and
Energy Group Finance Company Energy Group Finance Company is committed to offering the
Group a credit line of no more than RMB 22000000000 in 2019. In 2019 the Group borrowed a
total of RMB 8214032898 (2018: RMB 8688316390) from Energy Group Finance Company
based on actual capital requirement. The Group paid an interest of RMB 333661466 (2018: RMB
352108769) for such borrowings (Note 8(5)(h)).
(ii) In 2019 the net decrease of the Group’s deposits in Energy Group Finance Company was RMB
510103873 (2018: a net increase of RMB 825817906). Interest due from Energy Group Finance
Company amounted to RMB 63274596 (2018: RMB 60293273). 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(22)(a) according to the three-party agreement signed among the Group
Energy Group Finance Company and Industry Fuel the amount of the notes issued to Industry
Fuel by the Group and discounted with Energy Group Finance Company represents the amount
payable to Energy Group Finance Company. Given the frequent transactions only the net change
of the balance of commercial acceptance notes discounted with Energy Group Finance Company
as at 31 December is disclosed. As at 31 December 2019 the net amount of Energy Group
Finance Company’s discounting of acceptance notes issued by the Group to Industry Fuel
increased by RMB 216838893 (31 December 2018: increased by RMB 423161107). In 2019 the
discounting interest charged by Energy Group Finance Company and borne by the Group which
was included in the discounting interest expenses in the year amounted to RMB 28961757 (2018:
RMB 13243370) (Note 8(5)(h)).
(iv) Based on the Framework Agreement on Financial Lease between the Company and Yudean
Leasing in January 2019 Yudean Leasing is committed to offering the Group a credit line of no
more than RMB 5 billion which is reusable during the one-year agreement period. In 2019 the
balance of the Group’s long-term payables of finance lease through leaseback was RMB
537407741 (2018: 1148636185) and the finance lease payment was RMB 111825155 (2018:
RMB 28330513) (Note 8(5)(h)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
(f) 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 2019 the common expenses received by the Group from
Shajiao C was RMB 1945185 (2018: RMB 4516707).(g) Interest income
Related parties
Type of related party
transactions 2019 2018
Energy Group Finance CompanyI terest on deposits 63274596 60293273
(h) Interest expenses
Related parties
Type of related party
transactions 2019 2018
Energy Group Finance CompanyI terest on borrowings 333661466 352108769
Energy Group Finance CompanyNotes discount charges 28961757 13243370
362623223 365352139
(i) Interest payments
Related parties
Type of related party
transactions 2019 2018
Yudean Leasing Finance lease interest 111825155 28330513
In 2019 the loans provided by Energy Group Finance Company to the Group carried an annual
interest rate from 3.92% to 4.90% (2018: from 3.92% to 4.66%).(j) Purchase of assets from related parties
2019 2018
Shaoguan Electric Power Plant - 167735823
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
(k) Joint investment
As at 31 December 2019 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%
Energy Group Finance Company 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
2019 2018
Remuneration of key management 4558580 3737581
(6) Accounts receivable from and payable to related parties
Receivables from related parties:
31 December 2019 31 December 2018
Cash at bank and on
hand
Energy Group Finance
Company 4468014839 4978118712
Accounts receivable Yunhe Power 3123537 2817688
Xinhui Power 1706822 -
Qujiang Yudean New
Energy 1699980 -
Yudean New Energy 941609 1062659
Shajiao C 901427 10466023
Zhongshan Thermal 846660 -
Huizhou New Energy 577717 273740
Yuelong Power - 18000
9797752 14638110
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
Receivables from related parties (Cont’d):
31 December 2019 31 December 2018
Other receivables Yudean Environmental 69568758 54456181
Energy Group Finance
Company 20866069 18856569
GEGC 2311321 2070690
Yudean PI 1536942 1267802
Shajiao C 1371603 1663292
Yudean Shipping 576400 -
Yudean PM 466572 543732
Liquefied Natural Gas 329096 -
Xinhui Power - 549900
97026761 79408166
Advances to
suppliers Industry fuel 455412330 547209560
Other non-current
assets Yudean Technology 700000 525000
As at 31 December 2019 and 31 December 2018 the Group made no provision for bad debts of
receivables from related parties.
31 December 2019 31 December 2018
Notes payable Energy Group Finance
Company 870000000 653161107
31 December 2019 31 December 2018
Accounts payable Industry fuel 1638254539 1449619847
Guangdong Energy
Natural Gas 222256982 -
Yudean Environmental 28147157 34526337
Yudean PM 8044985 -
Yudean Shipping 2300000 -
Yudean Technology 92000 -
Huangpu Yuehua
Human Resources - 286313
1899095663 1484432497
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
Receivables from related parties (Cont'd):
31 December 2019 31 December 2018
Other payables
Energy Group
Finance Company - 13356633
Huangpu Power
Engineering 8327106 4818353
Yudean PM 1568761 7730098
Yudean Technology 959440 1130960
Yudean
Environmental 766080 1414106
Qujiang Yudean New
Energy 9000 -
Yuehua Power - 58000000
Yudean Shipping - 5312830
Yudean Leasing - 2167970
Huangpu Yuehua
Human Resources - 1622290
Yudean Property
Self-Insurance - 400000
Shenzhen Tianxin - 70000
11630387 96023240
31 December 2019 31 December 2018
Short-term borrowings
Energy Group Finance
Company
- Principal 4115000000 5042000000
- Interest 4893053 -
4119893053 5042000000
Current portion of
non-current
liabilities
Energy Group Finance
Company
- Principal 249872476 143919490
- Interest 4153303 -
254025779 143919490
Long-term borrowings
Energy Group
Finance Company 2765740493 2833766371
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
31 December 2019 31 December 2018
Long-term
payables Yudean Leasing 1667026669 1147811958
Guangdong Energy Group 12217551 -
1679244220 1147811958
Part of information on short-term borrowings and long-term borrowings obtained from related parties
is disclosed in Notes 4(21) 4(27) and 4(29); details on notes payable discounted by Energy Group
Finance Company is disclosed in Note 4(22); details on long-term payables provided by Yudean
Leasing is disclosed in Note 4(31)(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.
(7) Commitments in relation to related parties
Leases
31 December 2019 31 December 2018
- As lessee
Yudean PI 11465806 18622911
Yudean PM 1286668 -
12752474 18622911
(8) Investment commitments
As at 31 December 2019 the Group did not make any investment commitments with related parties.
9 Contingencies
(1) As at 31 December 2019 the Company provided joint guarantee for bank borrowings amounting to
RMB 80620000 for Yunnan Baoshan Binlangjiang Hydroelectricity Development Co. Ltd. of which
the liability relief procedure is being handled.
(2) Pinghai Power failed to complete settlement with two of its engineering contractors due to the dispute
of settlement regarding construction and installation project contracts. On 22 October 2018 one of
the contractors filed a lawsuit in the local municipal people's court demanding 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 1 April 2019
Pinghai Power received subpoena from the local municipal people’s court. On 14 May and 18 July
2019 Pinghai Power participated pre-trial conferences for the first instance and determined to hire a
third party to conduct cost appraisal for the dispute. On 2 July 2019 the other contractor filed a
lawsuit in the local intermediate people's court demanding Pinghai Power to make payment for the
additional construction expenses of RMB 89548053 arising from modification of scope of contract
and the interest of RMB 36526452 arising from delay in payment. On 14 August 2019 Pinghai
Power participated in the first instance hearing and filed an application for jurisdictional objection
which was rejected. On 8 November 2019 a counterclaim was filed by Pinghai Power in the local
intermediate people's court suing back against the contractor for default of contract due to delay in
project completion. On 17 January 2020 the two parties participated the trial for of the first instance
again and exchanged evidence in the court. 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
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
the lawsuits were presented in the financial statements for the year ended 31 December 2019.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 2019 31 December 2018
Buildings and power generation equipment 13735070950 8351174768
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 2019 31 December 2018
Within 1 year 24818237 16483957
1 to 2 years 5159843 12699701
2 to 3 years 1681275 2235203
Over 3 years 6578799 8375246
38238154 39794107
(3) Implementation of prior commitments
(a) The Ninth Session of the Board approved the Proposal on the Establishment of Guangdong
Ningzhou Site Alternative Power Project Company to Conduct Preliminary Work for Project
Verification during its 3rd communication meeting in on 12 June 2019. In order to accelerate
relevant work for Ningzhou Project the Board agreed that the Company would form a wholly-owned
Dongguan Ningzhou Site Alternative Power Project Company Binhai Bay Company. The new
company would be registered in Humen Dongguan with the initial registered capital of RMB
30000000. The preliminary work for Ningzhou Project should be carried out by the project
company in accordance with the requirements of project verification. The Ninth Session of the
Board approved the Proposal on Acquisition of Construction Land for Guangdong Ningzhou Site
Alternative Power Project during its 5th communication meeting on 31 October 2019. Pursuant to
the construction plan of Guangdong Ningzhou Site Alternative Power Project the Board agreed that
the construction land for the project could be acquired by Binhai Bay Company with a total budget of
no more than RMB 240000000. The land acquisition cost would be borne by the Company in the
form of capital contribution and recorded as project fund. As at 31 December 2019 the Company
had made a total contribution of RMB 270000000 to Haibin Bay Company.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments (Cont’d)
(3) Implementation of prior commitments (Cont’d)
(b) The Ninth Session of the Board approved the Proposal on Establishment of Zhuhai Jinwan
Offshore Wind Power Project during its 7th meeting on 25 January 2019. For the purpose of scaling
up the Company’s offshore wind power in Guangdong Province and the southeast coast the Board
approved the Company’s investment in Zhuhai Jinwan Offshore Wind Power Project with a total
dynamic investment of RMB 5643170000 including a capital fund of RMB 1128634000
(accounting for 20% of the total dynamic investment). Based on the construction progress and fund
requirement of the project the Company would increase its capital contribution to Guangdong Wind
Power which would then make capital injection to Zhuhai Wind Power. As at 31 December 2019
the Company had made a total capital contribution of RMB 265000000 to the project including a
supplementary contribution of 200000000 made in the current year.(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 198 MW 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. In 2019 the Company made the supplementary capital contribution of RMB
100000000 to Qujie Wind Power thus capital contribution accumulating to RMB 600000000.
(d) The Ninth Session of the Board approved the Proposal on Capital Increase and Share Expansion
of Guangdong Yudean Bohe Coal Power Co. Ltd. during its 2nd communication meeting on 19
September 2018. In order to drive the integration project of Bohe Coal and meet the capital
requirements of the protective resumption of Bohe Coal the Board agreed the capital injection to
the Company’s wholly-owned subsidiary Bohe Coal. The Company and GEGC should make
capital injection to Bohe Coal with a total amount of RMB 3980000000 in targeted proportion of
67% and 33% of the shareholding. As at 31 December 2019 the Company had increased a total
capital of RMB 938000000.(e) The Ninth Session of the Board approved the Proposal of Investment in Construction of Zhanjiang
Wailuo Offshore Wind Power Project (Phase II) during its 1st communication meeting on 23 March
2018 and the Proposal of Investment in Construction of Zhanjiang Wailuo Offshore Wind Power
Project (Phase II) during its 9th meeting on 29 August 2019. 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 gave permission to the
Company’s wholly-owned subsidiary Qujie Wind Power for the investment of Wailuo Phase II
which was deemed as the main part of investment. The total dynamic investment for the project
amounted to RMB 3789120000 including a capital fund of RMB 757824000 (accounting for
20% of the total dynamic investment). The capital fund for the project would be provided to Qujie
Wind Power by the Company through capital increase in batches based on actual construction
progress and capital demand. In 2018 the Company had made a total capital increase of RMB
48000000 to Qujie Wind Power Wailuo Phase II and in 2019 the Company did not increase
capital.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments (Cont’d)
(3) Implementation of prior commitments (Cont’d)
(f) 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 Yangjiang Wind Power by Guangdong
Wind Power after the Company’s capital increase to Guangdong Wind Power. 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%. As at 31 December 2019 the Company had made a total capital contribution of
RMB 455000000 to the project including a supplementary contribution of 100000000 made in
the current year.(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 3.67%
under the written approval of State-owned Assets Supervision and Administration Commission of
the People's Government of Shenzhen Municipal. The amounts of RMB 65135200 and RMB
78162240 have been injected in 2018 and 2019 respectively and the remaining RMB 69736560
would be injected within 2020.(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 95090000 RMB 103578300 and RMB
29114500 respectively in 2017 2018 and 2019. As at 31 December 2018 the Company had
injected a total capital fund of RMB 227782800.(i) The Ninth Session of the Board approved the Proposal on Investment in and Construction of
Zhanjiang Xinliao Offshore Wind Power Project during its 6th communication meeting on 28
November 2019. In order to optimise the Company’s energy structure and improve the proportion
of clean energy the Board agreed Qujie Wind Power’s investment (as the main part of the
investment in the project) in construction and operation of Zhanjiang Xinliao Offshore Wind Power
Project with a dynamic total investment of RMB 3698880000. The capital fund was calculated as
RMB 739776000 at a proportion of 20%. The capital fund for the project would be provided to
Qujie Wind Power by the Company through capital increase in batches based on actual
construction progress and capital demand. As at 31 December 2019 the Company had made a
total capital contribution of RMB 40000000 to the project with no contribution made in the current
year.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments (Cont’d)
(3) Implementation of prior commitments (Cont’d)
(j) The Seventh Session of the Board approved the Proposal on Establishment of Guangdong Yudean
Dapu Power Co. Ltd. during its 11th meeting on 29 October 2012. The Board agreed Dapu
Electric’s investment (as the main part of the investment in the project) in construction and operation
of the engineering project of replacing small generator units with big generator units. The capital
fund of RMB 1104000000 calculated at 20% of total investment of RMB 5520000000 was
needed. The capital fund for the project would be provided to Dapu Electric by the Company
through capital increase in batches based on actual construction progress and capital demand. As
at 31 December 2019 the Company had made a total capital contribution of RMB 1040000000 to
the project including a supplementary contribution of 40000000 made in the current year.(k) 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. The Board
agreed Huilai Wind Power’s technical transformation to Haiwan Shifeng Power Plant which would
be settled via capital increase to Yangjiang Wind Power by Guangdong Wind Power after the
Company’s capital increase to Guangdong Wind Power. The capital increase amounting to RMB
39000000 was fully made by the Company in 2019.
11 Events after the balance sheet date
(1) Statement of dividend distribution
According to the resolution at the Board of Directors’ meeting dated 17 April 2020 the Board
suggested the Group appropriating 10% and 25% of net profit amounting to RMB 77026584 and
RMB 192566461 to the statutory surplus reserves and the discretionary surplus reserve
respectively (2018: the Group appropriated RMB 117603557 of statutory surplus reserves and
RMB 294008893 of discretionary surplus reserve). Meanwhile the Board also suggested the
Group distributing cash dividends of RMB 630034078 to its shareholders at RMB 1.2 per 10
shares (2018: the Group distributed cash dividends of RMB 315017039 to the shareholders at
RMB 0.6 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.
(2) Evaluation on the impact of Coronavirus Disease 2019
After the outbreak of Coronavirus Disease 2019 (“COVID-19 outbreak”) in January 2020 a series of
precautionary and control measures have been and continued to be implemented across the
country.To fight against COVID-19 outbreak the Group works together to resolutely follow the epidemic
prevention and control policies made by the Central Committee of the Communist Party of China
the State Council the headquarters of the Group and the local governments and improves control
and prevention mechanism and measures. By taking into consideration the actual situation of its
companies the Group ensures stable production of its companies with multiple effective measures.In addition to pay close attention to the development of the epidemic the Company evaluates and
responds for its impact on the Group’s financial position operating results and other aspects. As at
the date on which the financial statements were authorised for issue the evaluation was still under
progress and the Group expected no significant impact of COVID-19 outbreak on the Group’s
ability to continue as a going concern.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
11 Events after the balance sheet date (Cont'd)
(3) Yuejia Electric intends to disposal its assets after shutting down of generator units by closing and
liquidation
Pursuant to Guangdong Province’s work arrangement for restructuring “zombie companies” and the
Notice of Yudean Group on Matters Concerning Yuejia Electric’s Transformation and Establishment
of Energy Service Base in March 2020 the Sixth Session of the Board of Yuejia Electric a
subsidiary of the Group approved the Proposal on the Overall Program of Guangdong Yuejia
Electric Co. Ltd. for Disposal of Assets after Shutting Down of Generator Units with its first off-site
resolution in 2020 and decided to disposal Yuejia Electric’s assets after shutting down of generator
units by closing and liquidation. The generator units of Yuejia Electric closed in succession in 2010
and 2016. As at 31 December 2019 the carrying amount of Yuejia Electric’s net assets was RMB
131 million and the balance of provision for impairment of the fixed assets and intangible assets of
Yuejia Electric was respectively RMB 480449596 and RMB 34210978(Note 13(a)(iii) and Note
4(15)(b)). As at the date on which the financial statements were authorised for issue matters
concerning the disposal of assets mentioned above were still under discussion.
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 consider taking
proper measures to mitigate the foreign exchange risk. During 2019 and 2018 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 2019
(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)
The financial assets and the financial liabilities denominated in foreign currencies which are held by
the Group were expressed in RMB as at 31 December 2019 and 31 December 2018 as follows:
31 December 2019
USD EUR HKD Total
Financial assets
denominated in foreign
currency -
Cash at bank and on
hand 1324 - 10339 11663
Financial liabilities
denominated in foreign
currency -
Long-term borrowings 62416979 1063810 - 63480789
Current portion of
non-current
liabilities 7600549 2459075 - 10059624
70017528 3522885 - 73540413
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
As at 31 December 2019 if the RMB had strengthened/weakened by 10% against the USD while all
other variables had been held constant the Group’s net profit would have been approximately RMB
5251215 (31 December 2018: approximately RMB 5609792 ) higher/lower for various financial
assets and liabilities denominated in USD.
As at 31 December 2019 if the RMB had strengthened/weakened by 10% against the EUR while all
other variables had been held constant the Group’s net profit would have been approximately RMB
264216 (31 December 2018: approximately RMB 450472 ) higher/lower for various financial assets
and liabilities denominated in EUR.
As at 31 December 2019 if the RMB had strengthened/weakened by 10% against the HKD while all
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
other variables had been held constant the Group’s net profit would have been approximately RMB
775 (31 December 2018: approximately RMB 847 ) 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 2019
(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 interest bearing borrowings including 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 2019 the
Group’s interest bearing borrowings were mainly borrowings debentures payable and long-term
payables and the amounts of respective interest are as follows:
31 December 2019 31 December 2018
Short-term borrowings
-fixed rate interest 750000000 735000000
-floating rate interest 5144026790 6791000000
5894026790 7526000000
31 December 2019 31 December 2018
Long-term borrowings and long-term
borrowings due within one year
-floating rate interest 19345443393 20548090036
31 December 2019 31 December 2018
Debentures payable and debentures
payable due within one year
-fixed rate interest 1536931768 1536994298
31 December 2019 31 December 2018
Long-term payables and long-term
payables due within one year (excluding
payables for specific projects)
-fixed rate interest 90000000 90000000
-floating rate interest 2657339603 2466113382
2747339603 2556113382
As at 31 December 2019 the Group’s fixed interest bearing borrowings amounted to RMB
2376931768 and floating interest bearing borrowings amounted to RMB 27146809786(31
December 2018: fixed interest bearing borrowings RMB 2361994298 floating rate bearing
borrowings RMB 29805203418).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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(Cont’d)
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 performance. The Group determines the
appropriate weightings of the fixed and floating rate interest-bearing instruments based on the
current market conditions and performs regular reviews and monitoring to achieve an appropriate
mix of fixed and floating rate exposure. In 2019 and 2018 the Group did not hedge the interest rate
risk with derivative financial instruments.
As at 31 December 2019 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 interest expense would
have increased/decreased by approximately RMB 27146810 (31 December 2018: approximately
RMB 17884606).
(2) Credit risk
Credit risk of the Group mainly arises from cash at bank and on hand accounts receivable other
receivables long-term receivables etc. The carrying amount of the Group’s financial assets reflect
its maximum credit exposure on the balance sheet date.The Group expects that there is no significant credit risk associated with cash at bank and on hand
since they are deposited at Energy Group Finance Company state-owned banks and other
medium or large size listed banks with good reputation and high credit rating. The Group does not
expect that there will be significant losses from non-performance by the counterparty.In addition the Group has policies to limit the credit exposure on accounts receivable other
receivables and long-term 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 31 December 2019 the Group had no significant collateral or other credit enhancements held
as a result of the debtor's mortgage.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial risk (Cont’d)
(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 2019
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Carrying amount
on balance
sheet
Short-term borrowings 6022575234 - - - 6022575234 5904132791
Notes payable 1364236650 - - - 1364236650 1364236650
Accounts payable 2465154162 - - - 2465154162 2465154162
Other payables 4042117097 - - - 4042117097 4042117097
Other current liabilities 1923479414 - - - 1923479414 1912282192
Long-term borrowings and
long-term borrowings due within
one year 3553716056 2365490761 5697789922 12879252180 24496248919 19375265574
Debentures payable and
debentures payable due within
one year 124850064 1544056328 - - 1668906392 1558013031
Long-term payables and long-term
payables due within one year
(excluding payables for specific
projects) 430536479 331964412 1613203370 915876405 3291580666 2747339603
19926665156 4241511501 7310993292 13795128585 45274298534 39368541100
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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 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 payable 941161107 - - - 941161107 941161107
Accounts payable 2196600415 - - - 2196600415 2196600415
Other payables 4152518495 - - - 4152518495 4152518495
Other current liabilities 1109288333 - - - 1109288333 1107904110
Long-term borrowings and current
portion of long-term borrowings 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 1513585861 636898250 2995037657 2556113382
19995735413 4114643581 7953183212 15247073167 47310635373 40565381843
The Group’s available financing credit lines under agreement with the financial institutions as at balance sheet date are as follows:
31 December 2019 31 December 2018
Available financing credit lines under agreement with the financing
institutions 31903008891 20635056100
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
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.
(1) Assets measured at fair value on a recurring basis
As at 31 December 2019 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
Investments in other equity
instruments -
Other equity instruments 408070373 - 2734301000 3142371373
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
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 among Level 1 Level 2 and Level 3 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 dividend model EBITDA multiplier
liquidity discount etc.The changes in Level 3 financial assets are analysed below:
31 December
2018
Changes in
accounting
policies 1 January 2019
Additions in the
current year
Gains recognised
in other
comprehensive
income
31 December
2019
Investments in other
equity instruments -
Other equity
instruments - 1225040951 1225040951 78162240 1431097809 2734301000
The Group adopt such valuation models as cash flow discounting model and comparable company in the
market to evaluate the fair value of the other equity instrument of Level 3 financial assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Fair value estimates (Cont’d)
(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 accounts receivable other
receivables long-term receivables 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 “shareholders’ 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 2019 and 31 December 2018 the Group's gearing ratio was as follows:
31 December 2019 31 December 2018
Gearing ratio 54.70% 57.02%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the company financial statements
(1) Accounts receivable
31 December 2019 31 December 2018
Accounts receivable 209270013 264564281
Less: Provision for bad debts (20911) (26806)
209249102 264537475
(a) The ageing of accounts receivable is analysed as follows:
31 December 2019 31 December 2018
Within 1 year 209270013 264564281
(b)
As at 31 December 2019 the five largest accounts receivable by debtors were summarised and
analysed as follows:
Balance
Amount of provision
for bad debts
% of total
balance
Total balance of the five largest
accounts receivable 209270013 (20911) 100.00%
(c) Provision for bad debts
For accounts receivable irrespective of whether a significant financing component exists the
Company measures the loss provision according to the lifetime expected credit losses.
The recognition criteria and accrual method of provision for bad debts of accounts receivable
adopted since 1 January 2019 are detailed in Note 2(9).(i) As at 31 December 2019 accounts receivable for which the related provision for bad debts was
provided on the grouping basis were analysed as follows:
Grouping 1
As at 31 December 2019 the Company’s receivables from sales of electricity amounted to RMB
207178864 which mainly comprised receivables from Southern Power Grid Company.
Considering the favourable credit history of Southern Power Grid Company the Company held that
there was no significant credit risk arising from receivables from sales of electricity. Since the
possibility of material losses due to the default by Southern Power Grid Company was extremely
low the expected credit losses for the receivables from sales of electricity was 0%.
As at 31 December 2019 there was no accounts receivable categorised in Grouping 2.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the company financial statements(Cont’d)
(1) Accounts receivable (Cont’d)
(c) Provision for bad debts (Cont’d)
(i)
As at 31 December 2019 accounts receivable for which the related provision for bad debts was
provided on the grouping basis were analysed as follows (Cont’d):
Grouping 3
31 December 2019
Ending balance Provision for bad debts
Amount
Lifetime ECL
(%) Amount
Within 1 year 2091149 1.00% (20911)
(ii) In 2019 the amount of provision for bad debts of accounts receivable was RMB 20911 and the
amount of reversed provision for bad debts of accounts receivable was RMB 26806 with
corresponding carrying amount of RMB 2680664. There was no provision for bad debts of
accounts receivable written off.
(2) Other receivables
31 December 2019 31 December 2018
Entrusted loans receivable 66460000 335000000
Supplementary medical insurance fund
receivable 18333314 22113731
Receivables from sales of by-products 8282082 6954775
Advances receivable 7809969 2167620
Dividends receivable 2652502 447956
Interest receivable 689092 1121522
Others 4073484 7605984
108300443 375411588
Less: Provision for bad debts (151165) (115360)
108149278 375296228
(a) The ageing of other receivables is analysed as follows:
31 December 2019 31 December 2018
Within 1 year 89961420 373852955
1 to 2 years 18219316 960869
Over 3 years 119707 597764
108300443 375411588
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the company financial statements (Cont’d)
(2) Other receivables (Cont'd)
(b) Provision for losses and changes in book balance statements
Stage 1 Stage 3
12-month ECL (on the
grouping basis)
12-month ECL (on the
individual basis) Sub-total
Lifetime ECL (credit
impaired) Total
Book
balance
Provision
for bad
debts Book balance
Provision
for bad
debts
Provision for
bad debts
Book
balance
Provision for
bad debts
Provision
for bad
debts
31 December 2018 4644810 (115360) 370766778 - (115360) - - (115360)
Changes in accounting
policies - - - - - - - -
1 January 2019 4644810 (115360) 370766778 - (115360) - - (115360)
Increase/(Recovery) in
the current year 3076372 (138281) (265753667) - (138281) (138281)
Reversal in the current
year (4433850) 102476 - - 102476 - - 102476
31 December 2019 3287332 (151165) 105013111 - (151165) - - (151165)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
(b) Provision for losses and changes in book balance statements (Cont’d):
As at 31 December 2019 the Company did not have other receivables in stage 2 or stage 3. Other
receivables at stage 1 were analysed below:
(i) As at 31 December 2019 other receivables at stage 1 with provision for bad debts on individual basis
were analysed as follows:
Book
balance
Lifetime ECL
(%)
Provision for
bad debts Reason
Entrusted loans
receivable 66460000 0% -
The counterparty is the Company’s
subsidiary with a historical loss rate
of 0%; therefore the expected credit
loss risk is extremely low.Receivables from
related parties 20219797 0% -
The counterparty is a related party with
a historical loss rate of 0%;
therefore the expected credit loss
risk is extremely low.Supplementary
medical insurance
fund receivable 18333314 0% -
The counterparty is Taikang Pension
which provides custody services to
the Company’s supplementary
medical insurance fund; therefore
the expected credit loss risk is
extremely low.
105013111 -
(ii) As at 31 December 2019 other receivables at stage 1 with provision for bad debts on grouping basis
were analysed as follows:
31 December 2019
Book balance Loss provision
Amount Amount Percentages
Grouping 1
Within 1 year 3076372 (22333) 1.00%
1 to 2 years 91253 (9125) 10.00%
Over 3 years 119707 (119707) 100.00%
3287332 (151165) 4.60%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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) In 2019 the amount of provision for bad debts of other receivables was RMB 138281 and the amount of
reversed provision for bad debts of other receivables in the current year was RMB 102476 with
corresponding carrying amount of RMB 4433850. There was no provision for bad debts of other
receivables written off.(d)
As at 31 December 2019 other receivables from top five debtors in respect of outstanding balance are
analysed as follows:
Nature Balance Ageing
% of total
balance
Provision for
bad debts
Lincang Energy
Entrusted loans
receivable 66460000 Within 1 year 61.37% -
Tainkang Pension
Supplementary
medical insurance fund
receivable 18333314 Within 2 years 16.93% -
Yudean
Environmental
Receivables from
sales of by-products 8282082 Within 1 year 7.65% -
Binhai Bay Company Advances receivable 3785476 Within 1 year 3.50% -
GEGC Service fee receivable 2311321 Within 1 year 2.13% -
99172193 91.58% -
(3) Long-term equity investments
31 December 2019 31 December 2018
Subsidiaries (a) 21366889333 19610774833
Joint ventures (b) 615218300 602584896
Associates (c) 5880150813 5763295357
Less: Long-term equity investments - provision for
impairment of subsidiary (a) (1251824079) (1251824079)
Long-term equity investments - provision for
impairment of joint venture (c) (96327854) (25010686)
26514106513 24699820321
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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
31 December 2018
Increase in
investment 31 December 2019
Ending balance of
provision for
impairment loss
Declared cash
dividends during
the year
Zhanjiang Electric 2185334400 - 2185334400 - 188824627
Yuejia Electric - - - 455584267 -
Maoming Zhenneng 687458978 - 687458978 - -
Jinghai Power 1930395668 - 1930395668 - 69302823
Zhanjiang Wind Power 242277000 - 242277000 - -
Zhongyue Energy 963000000 - 963000000 187248115 -
Humen Electric 3192416 - 3192416 86807584 -
Anxin Inspection 20000000 - 20000000 - 2652502
Bohe Coal 2229000000 938000000 3167000000 - -
Pinghai Power 720311347 - 720311347 - 150278473
Red Bay Power 2220023386 - 2220023386 - 108496971
Huizhou Natural Gas 1176084946 29114500 1205199446 - 156124360
Guangqian Electric 1353153223 - 1353153223 - 195967359
Yuejiang Power 745200000 - 745200000 408494674 -
Huadu Natural Gas 186550000 - 186550000 - -
Dapu Electric 1000000000 40000000 1040000000 - -
Sub-total for next page 15661981364 1007114500 16669095864 1138134640 871647115
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(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)
31 December 2018
Increase in
investment 31 December 2019
Ending balance of
provision for
impairment loss
Declared cash
dividends during
the year
Subtotal brought forward 15661981364 1007114500 16669095864 1138134640 871647115
Guangdong Wind Power 1192419390 339000000 1531419390 - -
Leizhou Wind Power 80800000 - 80800000 - 10677647
Qujie Wind Power 779750000 140000000 919750000 - 35650569
Power Sales 230000000 - 230000000 - 18974196
Lincang Energy 314000000 - 314000000 113689439 -
Yongan Natural Gas 90000000 - 90000000 - -
Tongdao Company 10000000 - 10000000 - -
Binhai Bay Company - 270000000 270000000 - -
Total 18358950754 1756114500 20115065254 1251824079 936949527
Relevant information of the Company’s subsidiaries is set out in Note 6.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the company financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(b) Joint ventures
Movements for the current year
31 December 2018
Share of net
profit/(loss) under
equity method
Cash dividends
declared 31 December 2019
Ending balance of
provision for
impairment loss
Industry fuel 602584896 80686526 (68053122) 615218300 -
(c) Associates
Movements for the current year
31 December
2018
Increase in
investment
Share of net
profit/(loss) under
equity method
Share of other
comprehensive
income
Other
changes in
equity
Cash dividends
declared
Provision for
impairment
31 December
2019
Ending balance
of provision for
impairment loss
Taishan Electric 1969208996 - 116141826 5117 - - - 2085355939 -
Shanxi Yudean Energy 1440189806 - 244013740 - - (40000000) - 1644203546 -
Energy Group Finance
Company 728955751 250000000 77073152 - (39794) (64106710) - 991882399 -
Yudean Shipping 935111350 - (476194650) 215351 (10262458) - - 448869593 -
Yudean Property
Self-Insurance 258026177 - 4147759 - 3907 (773832) - 261404011 -
Western Investment 135652349 - 1211348 2110342 3469243 - - 142443282 -
Yangshan Zhongxinkeng
Electric 7808826 - 1235845 - - (1001005) - 8043666 -
Jiangkeng Hydropower 5694710 - 512330 - - (809317) - 5397723 -
Weixin Yuntou 257636706 - 9903262 - - - (71317168) 196222800 (96327854)
5738284671 250000000 (21955388) 2330810 (6829102) (106690864) (71317168) 5783822959 (96327854)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the company financial statements (Cont’d)
(4) Revenue and cost of sales
2019 2018
Revenue from main operations 2143735733 2235681776
Revenue from other operations 66034845 52217824
2209770578 2287899600
2019 2018
Cost of sales from main operations 2091084312 2132196128
Cost of sales from other operations 1730508 1736758
2092814820 2133932886
(a) Revenue and cost of sales from main operations
2019 2018
Revenue from
main operations
Cost of sales
from main
operations
Revenue from
main operations
Cost of sales
from main
operations
Revenue from sales of
electricity 2119577250 2076001460 2211867034 2116516443
Revenue from steam 24158483 15082852 23814742 15679685
2143735733 2091084312 2235681776 2132196128
(b) Revenue and cost of sales from other operations
2019 2018
Revenue from
other operations
Cost of sales
from other
operations
Revenue from
other operations
Cost of sales
from other
operations
Sales of raw materials 27522105 158629 32148949 498400
Rental income 10246319 1126277 7189032 274737
Others 28266421 445602 12879843 963621
66034845 1730508 52217824 1736758
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the company financial statements (Cont’d)
(5) Investment income
2019 2018
Income from long-term equity investments
under cost method 936949527 965079299
Investment income from long-term equity
investment under equity method 58731138 484016449
Investment income earned during the holding
period of other equity instruments 58580379 -
Investment income from available-for-sale
financial assets - 49140042
Interest income from entrusted loans 18164293 18545516
Recovery of interest income from written off
other receivables (Note 4(48)(a)) 1224342 -
Others 827264 363563
1074476943 1517144869
There is no significant restriction on the remittance of investment income to the Company.
(6) Reversal of credit impairment losses
2019 2018
Recovery of other receivables written off 48647647 -
Reversal of losses on bad debts of accounts
receivable 5895 -
Losses on bad debts of other receivables (35805) -
48617737 -
(7) Asset impairment losses
2019 2018
Impairment of long-term equity investments 71317168 113689439
Impairment losses on fixed assets - 40395369
Bad debts provision - 142166
71317168 154226974
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss
2019 2018
Recovery of other receivables written off 48647647 -
Government grants recognised in profit or loss for the
current period 33284069 43530965
Gains on disposal of non-current assets 20503424 1572097
Gains on scraping of non-current assets 6789851 2245329
Penalties and overdue fines (4449214) (12679505)
Losses on scrapping of non-current assets (14970579) (21457918)
Other non-operating income and expenses other than
aforesaid items 13855534 82188801
103660732 95399769
Effect of income tax (26385663) (25191469)
Effect of minority interests (net of tax) 95768 (7809260)
77370837 62399040
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 those are not directly related to the Company’s normal course of
business also from transactions and events those even are related to the company’s normal
course of business but will interfere with the right judgement of users of the financial statements
on the company’s operation performance and profitability due to their special nature and
occasional occurrence.
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
2019 2018 2019 2018 2019 2018
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Net profit attributable
to ordinary
shareholders of the
Company 4.77% 2.02% 0.22 0.09 0.22 0.09
Net profit attributable
to ordinary
shareholders of the
Company after
deducting
non-recurring profit
or loss 4.45% 1.75% 0.20 0.08 0.20 0.08
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Accounting data difference under domestic and overseas accounting standards
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
2019 2018
31 December
2019
31 December
2018
Under the CASs 1146767033 474461997 26178241077 24227302288
Items and amounts adjusted
under the IFRSs
Difference in recognition of
goodwill on business
combination under
common control (a) (25984223) - 38638777 64623000
Difference in recognition of
land use value upon
business combination (a) (630000) (630000) 16970000 17600000
Impact on minority interests
(b) 54120 54120 4864339 4810219
Under the IFRSs 1120206930 473886117 26238714193 24314335507
(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
GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
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.XIII. 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 18 2020
沪公网安备31011802005267号
