粤电力B：2020年半年度报告（英文版）

GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD.

The Semi-annual Report 2020

August 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 semi-annual report.Other directors attending the Meeting for the Semi-annual report deliberation except for the followed:

Name of director absent Title for absent director Reasons for absent Attorney

Wang Jin Director Due to business Zheng Yunpeng

Li Fangji Director Due to business Zheng Yunpeng

Chen Ze Director Due to business Rao Subo

Yan Ming Director Due to business Wen Lianhe

Liang Peilu Director Due to business Sha Qilin

Mao Qinghan Director Due to business Ma Xiaoqian

This semi-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 X(4) of Chapter 4 of

this annual report-situation faced and countermeasures for relevant information.The Company Will not distribute cash dividend or bonus shares neither capitalizing of common reserves for the

report period.Table of Contents

The Semi-annual Report 2020

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. Corporate Bond

XI. Financial Report

XII. Documents available for inspection

Definition

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.

Daya Bay Company Refers to Guangdong Yudean Daya Bay Integrated Energy Co. Ltd.

Qiming Company Refers to Guangdong Yudean Qiming 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.Guangdong Energy Insurance Company Refers to

Guangdong Energy Property Insurance Captive Co. Ltd. (formerly "

Guangdong Yudean Property Insurance Captive Co. Ltd.." renamed

on July 27 2020)

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.

Energy Group 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. Corporate Profile and Key Financial Results

I.Company information

Stock abbreviation Yue Dian Li A Yue Dian Li B Stock code： 000539、200539Stock exchange for listing Shenzhen Stock Exchange

Name in Chinese 广东电力发展股份有限公司

Abbreviation of Registered Company

Name in Chinese(If any)粤电力

English name (If any) GUANGDONG ELECTRIC POWER DEVELOPMENT CO.LTD

English abbreviation (If any) GED

Legal Representative Wang Jin

Ⅱ.Contact person and contact manner

Board secretary Securities affairs Representative

Name Liu Wei Qin Xiao

Contact address

35F 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)87570251 (020)87570251

Fax (020)85138084 (020)85138084

E-mail liuw@ged.com.cn qinxiao@ged.com.cn

III. Other info.

1. Way of contact

Whether registrations address offices address and codes as well as website and email of the Company changed in

reporting period or not

□ Applicable √ Not applicable

Registrations address offices address and codes as well as website and email of the Company has no change in

reporting period found more details in annual report 2019.

2. Information inquiry

Whether information disclosure and preparation place changed in reporting period or not

□ Applicable √ Not applicable

None of the official presses website and place of enquiry has been changed in the semi report period. For details

please find the Annual Report 2019.IV.Summary of Accounting data and Financial index

May the Company make retroactive adjustment or restatement of the accounting data of the previous years

□ Yes √ No

Reporting period Same period of last year YoY+/-（%）

Operating income（yuan） 12539917823 12874181250 -2.60%

Net profit attributable to the shareholders

of the listed company（yuan）

813684495 581569383 39.91%

Net profit after deducting of non-recurring

gain/loss attributable to the shareholders of

listed company（yuan）

784542709 588588917 33.29%

Cash flow generated by business operation

net（yuan）

4018221897 3803441801 5.65%

Basic earning per share(yuan/Share) 0.1550 0.1108 39.89%

Diluted gains per share(yuan/Share) 0.1550 0.1108 39.89%

Weighted average income/asset ratio（%） 3.03% 2.37% 0.66%

As at the end of the

reporting period

As at the end of last year YoY+/-（%）

Gross assets（yuan） 79265582617 75472027123 5.03%

Shareholders’ equity attributable to

shareholders of the listed company（yuan）

26356282412 26178241077 0.68%

V.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 813684495 581569383 26356282412 26178241077

Items and amount adjusted according to IAS

The difference arising from

recognition of goodwill after

merger of enterprises under

the same control

38638777 38638777

Difference arising from

recognition of land use value

after enterprise merger

-315000 -315000 16655000 16970000

Influence on minority interests 27060 27060 4891399 4864339

According to IAS 813396555 581281443 26416467588 26238714193

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

(a) The difference arising from recognition of goodwill after merger of enterprises under the same control and

recognition of land value after enterprise merger.

As required by new Chinese accounting standards the goodwill formed by the merger of enterprises under

the same control shall not be recognized and capital surplus shall be adjusted. Under IFRS the golldwill

formed by the merger of enterprises under the same control shall be recognized and equal to the difference

between merger cost and share of fair value of recognizable net assets of the purchased party obtained in

merger. Meanwhile all assets of the purchased party obtained in merger shall be accounted for according to

their fair value while such assets shall be accounted for according to their book value according to original

Chinese accounting standards for business enterprises. Therefore this difference will continue to exist.

(b) Influence on minority interests

Housing reform loss occurred to the Company and some holding subsidiaries. Therefore there’s some

influence on minority interests.VI.Items and amount of deducted non-current gains and losses

√ Applicable □ Not applicable

In RMB

Items Amount Notes

Non-current asset disposal gain/loss(including the write-off part

for which assets impairment provision is made)

51176776

Yuejia Company liquidated the

proceeds from the sale of

machinery and equipment.Govemment subsidy recognized in current gain and

loss(excluding those closely related to the Company’s business

and granted under the state’s policies)

8974941

Mainly due to Zhenneng

Company received

unemployment insurance rebate

and Guangqian Company

received subsidy for stable

growth of electricity.Other non-business income and expenditures other than the above -285673

Fines and overdue payment fees -2784751

Non-current assets scrap income 8035492

Mainly due to the income from

scrapped fixed assets of

Zhongyue Company and Pinghai

Power Plant.Loss of Non-current assets scrapped -1124738

Less: Amount of influence of income tax 16693859

Influenced amount of minor shareholders’ equity (after tax) 18156402

Total 29141786 --

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 the people using it forelectricity and benefiting the public” and adheres to the business policy of “Centering on the main business ofelectricity with diversified development” focusing on the main business of power and making the power structure

go diversified. In addition to the development construction and operation of large-scale coal-fired power plants it

also has clean energy projects such as LNG power generation wind power generation and hydropower generation

which provides reliable and clean energy to users through the grid company. As of June 302020

As of the end of the reporting period the company has controllable installed capacity of 21.192 million kilowatts

including holding installed capacity of 19.536 million kilowatts and equity participation installed capacity of

1.657 million kilowatts. Including: the holding installed capacity for coal-fired power generation of 15.09 million

kilowatts; the holding installed capacity for gas and electricity of 3.72 million kilowatts and renewable energy

generation like wind power and hydropower of 726000 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 31.284 billion kwh a decrease of

0.76% YOY; average price stated in the consolidated statements is 442.46 Yuan/ thousands kwh (tax included the

same below ) a decrease of RMB 17.28 yuan/ thousands kwh and a decrease of 3.80% YOY the total operating

income was RMB 12539.92 million a decrease of RMB 334.26 million and YoY drop of 2.60%

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 Generation fuel costs were 7042.96 million yuan which accounted for 63.15% of the

main business costs; Affected by the fall in electricity and coal prices a decrease of 785.43 million yuan or a

decrease of 10.03% over the same period of last year.

During the reporting period under the positive effects of normalization of epidemic prevention and control and

overall planning of economic and social development the company's power production was generally stable the

main cost control effect was good and the profit rate of main business was improved which made the company's

operating performance achieve a certain growth year-on-year achieving a net profit attributable to shareholders of

the parent company of 813.69 million yuan with a year-on-year increase of 39.91% and an earning per share of

0.1550 yuan.

Ⅱ.Major Changes in Main Assets

1.Major Changes in Main Assets

Main assets Major changes

Equity assets No major changes

Fixed assets No major changes

Intangible assets No major changes

Construction in process No major changes

2. Main Conditions of Overseas Assets

□ Applicable √ Not applicable

Ⅲ. Analysis On core Competitiveness

1. The largest listed company of power in Guangdong

The Company's main power generation assets are located in Guangdong Province with a total asset size of more

than 79 billion. It is the largest listed company of power in Guangdong Province. As of June 2020 the controllable

installed capacity and entrusted installed capacity of the company totaled 34.465 million kilowatts accounting for

about 26% of the unified installed capacity of Guangdong Province.

2. Strong background resources advantage

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 13th Five-Year Plan of the Company specified the overall strategy of taking power generation as the core

business optimizing the development of coal-fired power steadily developing gas power vigorously developing

clean energy such as wind power and hydropower continuously optimizing the power supply structure and heading

to an efficient clean and low-carbon road. The company has abundant project reserves and broad development

prospects with about 10 million 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 the

first half of 2020 the company completed a total of 31.284 billion kWh 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

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

As of June 2020 the company's total assets were 79.266 billion yuan net assets were 34.389 billion yuan net

assets attributable to the parent company were 26.356 billion yuan and net profit attributable to the parent

company was 814 million yuan; The net cash inflow from operating activities was 4.018 billion yuan the net cash

outflow from investment activities was 3.327 billion yuan and the net cash outflow from financing activities was

47 million 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 the first half of 2020 affected by the COVID-19 the demand for industrial electricity in the whole society

declined. However with the solid resumption of production and business the total electricity consumption in

Guangdong Province reached 296.484 billion kWh which was close to the same level last year and the decline

continued to narrow. From January to June 2020 Guangdong Province's power generation and purchase

decreased by 1.93% year-on-year nuclear power and wind power in Guangdong Province increased by 19.54%

and 23.1% year-on-year and the power purchase of XD Group decreased by 20.36% year-on-year. The company

completed 31.284 billion kWh of on-grid power down by 0.76% year-on-year and the average utilization hours

of holding coal-fired units were 1764 hours down by 60 hours year-on-year.

In 2020 the scale of marketization transaction in Guangdong Province continued to expand with the total volume

reached 260 billion kWh (an increase of 30% over 2019). According to the data released by the Guangdong

Electric Power Trading Center the 2020 annual bilateral negotiation transaction volume organized by the

Guangdong Electric Power Trading Center was 211.713 billion kWh and the average transaction price difference

was -47.1 Cent(RMB)/kWh. In the first half of 2020 the monthly concentrated bidding transaction power was

9.837 billion kWh and the average clearing spread was -33.4 Cent(RMB)/kWh. In 2020 the Company's

budgetary on-grid electricity was 72.867 billion kWh of which the base electricity was 6.054 billion kWh

accounting for about 10%; the annual long-term contracted was 50.317 billion kWh accounting for about 70%;

the rest was monthly bidding volume accounting for about 20%. In the first half of 2020 the average selling price

of the Company's consolidated statements was 442.46 yuan / thousand kWh (excluding tax) a decrease of 17.28

yuan / thousand kWh.In the first half of 2020 under the positive effects of normalization of epidemic prevention and control and overall

planning of economic and social development the company's power production was generally stable the main

cost control effect was good and the profit rate of main business was improved which made the company's

operating performance achieve a certain growth year-on-year. As of June 2020 the total assets according to the

company's consolidated statements were 79.266 billion yuan with an increase of 5.03% over the beginning of the

year and the equity attributable to shareholders of the parent company was 26.356 billion yuan with an increase

of 0.68% over the beginning of the year. The company's revenue according to the consolidated statement was

12.54 billion yuan with a year-on-year decrease of 2.60%; The net profit attributable to shareholders of the parent

company was 814 million yuan with a year-on-year increase of 39.91%; Earnings per share is 0.1550 yuan.

According to the consolidated statement of the company the total liabilities are 44.877 billion yuan and the

asset-liability ratio is 56.62%.In the first half of 2020 all 36 wind turbines of the Wailuo offshore wind power project (36×0.55 million

kilowatts) which was controlled by the company were put into operation in parallel and 34 of them passed the

250h trial operation and were officially put into production increasing the controllable installed capacity by

187000 kilowatts. As of June 2020 the company has controllable installed capacity of 21.192 million kilowatts

including holding installed capacity of 19.536 million kilowatts and equity participation installed capacity of

1.657 million kilowatts. Including: the holding installed capacity for coal-fired power generation of 15.09 million

kilowatts accounting for 77.2%; The holding installed capacity for gas and electricity of 3.72 million kilowatts

accounting for 19.0%; The holding installed capacity for renewable energy power generation such as wind power

and hydropower of 726000 kilowatts accounting for 3.7%. In addition the company's installed capacity under

management is 13.273 million kilowatts (11.069 million kilowatts for thermal power and 2.204 million kilowatts

for hydropower) with the above-mentioned controllable installed capacity and the installed capacity under

entrusted management totaling 34.465 million kilowatts.II. Main business analysis

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

Changes in the financial data

In RMB

This report period Same period last year YOY change（%） Cause change

Operating income 12539917823 12874181250 -2.60%

Operating cost 10150973022 11024143476 -7.92%

Sale expenses 22894557 12844788 78.24%

In order to grasp the

opportunity of power market

reform the company

strengthened its investment

in the power market

marketing business so the

sales expenses increased

significantly year-on-year.

Administrative expenses 301675673 270884804 11.37%

Financial expenses 561314905 635395970 -11.66%

Income tax expenses 472879412 309835930 52.62%

Mainly due to the company's

profit increased year-on-year.R & D Investment 831109 347523 139.15%

Mainly due to Zhanjiang

Electric Power invested more

in research and development

this year.

Cash flow generated by

business operation net

4018221897 3803441801 5.65%

Net cash flow generated

by investment

-3327095659 -1616320253 105.84%

Mainly due to the company

increased its investment in

wind power and gas power

projects during the reporting

period.Net cash flow generated

by financing

-46707153 -2560881610 -567.46%

mainly due to a year-on-year

increase of 5.323 billion

yuan in borrowings and a

year-on-year increase of

2.308 billion yuan in cash

paid for debt repayment.Net increasing of cash

and cash equivalents

644419313 -373760017 -1631.48%

mainly due to the

year-on-year increase in

financing this year which led

to large changes in cash.Major changes to the profit structure or sources of the Company in the reporting period

□ Applicable √Not applicable

The profit composition or sources of the Company have remained largely unchanged during the report period.

Component of Business Income

In RMB

This report period Same period last year

Increase /decrease

Amount Proportion Amount Proportion

Total operating

revenue

12539917823 100% 12874181250 100% -2.60%

On Industry

Electric power

Steam sales and

labor income

12359160846 98.56% 12744689154 98.99% -3.03%

Other 180756977 1.44% 129492096 1.01% 39.59%

On products

Sales Electric Power 12249310829 97.68% 12657308705 98.32% -3.22%

Thermal sales 68698614 0.55% 67875105 0.53% 1.21%

Comprehensive

utilization of fly ash

145845255 1.16% 90635771 0.70% 60.91%

Other 76063125 0.61% 58361669 0.45% 30.33%

Area

Guangdong 12517016866 99.82% 12847440711 99.79% -2.57%

Yunnan 22900957 0.18% 26740539 0.21% -14.36%

(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/decrease

of revenue in the

same period of

the previous

year(%)

Increase/decrease

of business cost

over the same

period of

previous year (%)

Increase/decrease

of gross profit

rate over the same

period of the

previous year (%)

On Industry

Electric power

Steam sales and

labor income

12359160846 10137771229 17.97% -3.03% -8.02% 4.45%

On Products

Sales Electric

Power

12249310829 10045115327 17.99% -3.22% -8.39% 4.62%

Thermal sales 68698614 43547861 36.61% 1.21% 0.50% 0.45%

Area

Guangdong 12517016866 10124838024 19.11% -2.57% -7.93% 4.70%

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

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

□ Applicable √Not applicable

Ⅲ. Analysis of Non-core Business

□ Applicable √Not applicable

IV. Analysis of assets and liabilities

1.Significant changes in asset composition

In RMB

End of Reporting period End of same period of last year

Change in

percentage(%)

Reason for

significant change Amount

As a percentage of

total assets(%)

Amount

As a percentage

of total

assets(%)

Monetary fund 5726061282 7.22% 5081641969 6.73% 0.49%

Accounts

receivable

3409377594 4.30% 3197690464 4.24% 0.06%

Inventories 1817548570 2.29% 1817059269 2.41% -0.12%

Real estate

Investment

50818225 0.06% 52093631 0.07% -0.01%

Long-term equity

investment

6360521327 8.02% 6455784562 8.55% -0.53%

Fixed assets 39909743395 50.35% 38555718718 51.09% -0.74%

Construction in

process

10126473896 12.78% 10882003846 14.42% -1.64%

Short-term loans 6947498951 8.76% 5904132791 7.82% 0.94%

Long-term loans 17444945172 22.01% 16587103380 21.98% 0.03%

2.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable

In RMB

Items

Amount at

year

beginning

Gain/loss on

fair value

change in the

reporting

period

Cumulative

fair value

change

recorded into

equity

Impairment

provisions in

the reporting

period

Purchased

amount in the

reporting

period

Sold amount

in the

reporting

period

Other

changes

Amount at year

end

Financial

assets

4．Investment

in other

equity

instruments

3142371373 2195266542 3134892598

Total 3142371373 2195266542 3134892598

Financial

Liability

0 0 0

Did great change take place in measurement of the principal assets in the reporting period ?

□ Yes √ No

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

(1) On June 30 2020 individual subsidiaries of the Group pledged the right to impose electricity charges to banks

to obtain long-term loans of RMB 4304422985of which: the balance of long-term loans due within one year

was 241373286 yuan (as of December 31 2019: 4231292593 yuan). including: the long-term borrowings due

within one year amounted to RMB240907909 . The borrowings are detailed as follows:

1.As at June 30 2020 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 June 302020 December 312019

Guangdong Shaoguan Yuejiang Power Generation Co. Ltd. 1937211666 1976685804

Guangdong Yudean Leizhou Power Generation Co. Ltd. 228045480 232038267

Guangdong Yudean Qujie Wind Generation Co. Ltd. 1289704200 1155920000

Guangdong Yudean Zhanjiang Wind Power Generation Co.Ltd.

112665000 121425000

Lincang Yudean Energy Co. Ltd. 671000000 676000000

Guangdong Yudean Xuwen Wind Power Generation Co. Ltd. 65796639 69223522

Total 4304422985 4231292593

In RMB

Name June 302020 December 312019

Guangdong Shaoguan Yuejiang Power Generation Co. ltd. 193721168 188255791

Guangdong Yudean Zhanjiang Wind Power Generation Co. Ltd. 22860000 22860000

Lincang Yudean Energy Co. Ltd. 10000000 15000000

Guangdong Yudean Xuwen Wind Power Generation Co. Ltd. 6806543 6806543

Guangdong Yudean Leizhou Power Generation Co. Ltd. 7985575 7985575

Total 241373286 240907909

2.As at June 302020 The book value of fixed assets leased by the company through finance leasing is about

RMB 1238649692(Original value RMB 2962401108 )

①.As at June 302020 The book value of fixed assets leased by Zhanjiang Zhongyue Energy Co. Ltd.

through finance leasing is about RMB 352068940 (Original value RMB 900000000 );

②As at June 302020 The book value of fixed assets leased by Guangdong Shaoguan Yuejiang Power Generation

Co. Ltd.through finance leasing is about RMB 781164085 (Original value RMB1062401108 );

2.As at June 30 2020 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:

③As at June 302020 The book value of fixed assets leased by Guangdong Yudean Jinghai Power Generation Co.

Ltd.through finance leasing is about RMB 105416667 (Original value RMB1000000000);

3. On June 30 2020 the book value of the construction in progress of the Company to form a finance lease after

sale and leaseback was RMB 1863118149 (December 312019: 1696460736)

① The book value of the construction in progress by finance lease by Guangdong Yudean Bohe Coal and

Electricity Co. Ltd was RMB 1008308409(December 312019: 1007806525).

②The book value of the construction in progress by finance lease by Guangdong Yudean Qujie Wind Power

Generation Co. Ltd was RMB595131079 (December 312019: 496524360 ).③The book value of the construction in progress by finance lease by Guangdong Yudean Yangjiang Sea Wind

Power Co. Ltd. was RMB156494075 (December 312019: 98973445 ).④③The book value of the construction in progress by finance lease by Guangdong Yudean Zhuhai Sea Wind

Power Co. Ltd. was RMB103184586 (December 312019: 100962931 ).V. Investment situation

1. General

√ Applicable □ Not applicable

Investment of the period Investment of same period of last year Scale of change

447600000 980162240 -54.33%

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

√Applicable □ Not applicable

In RMB

Name of the

Company

Invested

Main

Busin

ess

Invest

ment

Way

Investment

Amount

Propor

tion %

Capit

Sourc

Partner

Invest

ment

Horizo

Product

Type

Progress up to Balance

Sheet Date

Anticipat

Income

Gain or

Less or

the

Current

Investmen

Whether to

Involve in

Lawsuit

Date of

Disclosure(if

any)

Disclosure Index(if any)

Guangdong

Wind Power

Generation

Co. Ltd.

Wind

Powe

Gener

ation

Capita

increas

50000000 100%

Self

Funds

Long-t

erm

Electric

power

During the reporting

period the construction of

Taiyangshan Wind Farm

Project in Xupu Hunan

Province was progressing

normally.

-153609 No April 112020

Announcement

No.:2020-13)Published in

China Securities Daily Securities

Times and

http//.www.cninfo.com.cn

Guangdong

Wind Power

Generation

Co. Ltd.

Wind

Powe

Gener

ation

Capita

increas

50000000 100%

Self

Funds

Long-t

erm

Electric

power

During the reporting

period the construction of

Guangxi Wuxuan Wind

Farm Phase I project was

progressing normally.

-204770 No

November

292019

Announcement

No.:2019-58)Published in

China Securities Daily Securities

Times and

http//.www.cninfo.com.cn

Guangdong

Wind Power

Generation

Co. Ltd.

Wind

Powe

Gener

ation

Capita

increas

100000000 100%

Self

Funds

Long-t

erm

Electric

power

During the reporting

period the construction of

Zhuhai Jinwan Offshore

Wind Farm Project was

progressing normally.

-80922 No

January

262019

Announcement

No.:2019-05)Published in

China Securities Daily Securities

Times and

http//.www.cninfo.com.cn

Guangdong

Yudean

Qujie Wind

Power

Generation

Co. Ltd.

Wind

Powe

Gener

ation

Capita

increas

80000000 100%

Self

Funds

Long-t

erm

Electric

power

During the reporting

period the construction of

Zhanjiang Wailuo Offshore

Wind Power Project Phase

II was progressing

normally.

-1540546 No

August

312019

Announcement

No.:2019-40)Published in

China Securities Daily Securities

Times and

http//.www.cninfo.com.cn

Guangdong

Yudean

Qujie Wind

Power

Generation

Co. Ltd.

Wind

Powe

Gener

ation

Capita

increas

80000000 100%

Self

Funds

Long-t

erm

Electric

power

During the reporting

period the construction of

Zhanjiang Xinliao

Offshore Wind Power

Project was progressing

normally.

-1312340 No

November

292019

Announcement

No.:2019-59)Published in

China Securities Daily Securities

Times and

http//.www.cninfo.com.cn

Tongdao

Yuexin Wind

Power

Generation

Co. Ltd.

Wind

Powe

Gener

ation

Capita

increas

50000000 100%

Self

Funds

Long-t

erm

Electric

power

During the reporting

period the construction of

Dagaoshan Wind Power

Project in Tongdao Dong

Autonomous County of

Hunan Province

was progressing normally.

-109532 No April 112020

Announcement

No.:2020-13)Published in

China Securities Daily Securities

Times and

http//.www.cninfo.com.cn

Guangdong

Yudean Daya

Bay Energy

Co. Ltd.

Natur

Gas

Gener

ation

Capita

increas

17600000 80%

Self

Funds

Huizhou

Daya Bay

Petrificatio

Industrial

Zone

Investment

Co. Ltd.：

20%

Long-t

erm

Electric

power

During the reporting

period the preliminary

work of the Western

Comprehensive Energy

Station Project of Daya

Bay Petrochemical Zone in

Huizhou was progressing

normally.

-63973 No

February

152020

Announcement

No.:2020-10)Published in

China Securities Daily Securities

Times and

http//.www.cninfo.com.cn

Guangdong

Yudean

Qiming

Energy Co.

Ltd.Natur

Gas

Gener

ation

Capita

increas

20000000 100%

Self

Funds

Long-t

erm

Electric

power

During the reporting

period the preliminary

work of the Alternative

Power Supply Project at

Shenzhen Guangming

Plant was progressing

normally.

-182 No

November

292019

Announcement

No.:2019-58)Published in

China Securities Daily Securities

Times and

http//.www.cninfo.com.cn

Total -- -- 447600000 -- -- -- -- -- -- 0 -3465874 -- -- --

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

□ Applicable √ Not applicable

4. Financial assets at fair value

√ Applicable □ Not applicable

In RMB

Category

Initial

investment cost

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

Accounting items

Source of the

Stock 15890628 -19782000 42573372 0 0 0 58464000 Self funds

Stock 235837988 5553225 92357610 0 0 0 328195598 Self funds

Stock 3600000 6750000 10332000 0 0 0 13932000 Self funds

Other 258297440 0 637702560 0 0 0 896000000 Self funds

Other 356000000 0 1412000000 0 0 0 1768000000 Self funds

Other 70000000 0 301000 0 0 0 70301000 Self funds

Total 939626056 -7478775 2195266542 0 0 0 3134892598 --

5.Investment of Financial Asset

（1）Securities investment

√ Applicable □Not applicable

In RMB

Security

Category

The method for

depreciation

Expected useful life（Year）

Estimated residual value Depreciation

House and building Straight-line method 10 - 50 years 5% 1.90%- 9.50%

Generation equipment Straight-line method 5 - 25 years 0%-5% 3.80% - 20%

Transportation

equipment

Straight-line method

5 - 15 years 0%-5% 6.33% - 20%

Other equipment Straight-line method 5 - 22 years 0%-5% 4.32% - 20%

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.

(3)Cognizance evidence and pricing method of financial leasing fixed assets

The lease that essentially transfers all the risks and returns related to the ownership of the asset is classified as

finance lease. The entry value of the fixed assets under finance lease the lower of its fair value and the present

value of the minimum lease payments. The difference between the entry value of the fixed asset under financelease and the present value of the minimum lease payment is recognised as unrecognised financing charges（Note

5(28). Fixed assets under finance lease share the same depreciation method with company owned fixed assets. If

there is reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term the

leased asset is depreciated over its estimated useful life. Otherwise the leased asset is depreciated over the shorter

of the lease term and its estimated useful life.

17.Construction in progress

Construction in progress is measured at its actual costs incurred. Actual costs include construction cost

installation cost capitalised borrowing costs and any other costs directly attributable to bringing the asset to

working condition for its intended use. When the construction in progress is ready for its intended use it is

transferred to fixed assets and starts depreciation the following month. When recoverable amount of the

construction in progress is lower than its carrying value its carrying value is then reduced to the recoverable

amount.

18.Borrowing costs

The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a

substantially long period of time of acquisition and construction for its intended use commence to be capitalised

and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been

incurred and the activities relating to the acquisition and construction that are necessary to prepare the asset for its

intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or

construction becomes ready for its intended use the borrowing costs incurred thereafter are recognised in income

statement. Capitalisation of borrowing costs is suspended when the acquisition or construction of a fixed asset is

interrupted abnormally and the interruption lasts for more than 3 months until the acquisition or construction is

resumed.

For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for

capitalisation the amount of borrowing costs eligible for capitalisation is determined by deducting any interest

income earned from depositing the unused specific borrowings in the banks or any investment income arising on

the temporary investment of those borrowings during the capitalisation period.

For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for

capitalisation the amount of borrowing costs eligible for capitalisation is determined by applying the weighted

average effective interest rate of general borrowings to the weighted average of the excess amount of cumulative

expenditures on the asset over the amount of specific borrowings. The effective interest rate is the rate at which

the estimated future cash flows during the period of expected duration of the borrowings or applicable shorter

period are discounted to the initial amount of the borrowings.19. Intangible assets

1. Valuation Method Service Life and Impairment Test of Intangible Assets

Intangible assets mainly including land use rights sea use rights software associated projects for electricity

transmission and transformation microwave engineering and transportation engineering are measured at cost.Intangible assets contributed by the state-owned shareholders at the incorporation of a limited company are

initially recorded at the valuation amount recognised by the state-owned assets supervision and administration

department.(a) Land use right and sea use right

Land use rights are amortised on a straight-line basis over their approved period of 20 to 70 years. If the purchase

costs of land and attached buildings cannot be reasonably allocated between the land use right and the buildings

the purchase costs are recognised as fixed assets.(b) Other intangible assets

Besides land use right sea use right associated projects for electricity transmission and transformation

microwave engineering and transportation engineering other intangible assets are amortized on a straight-line

basis over their expected life of 2 years to 25 years.(c) Periodic review on useful life and method of amortisation

For intangible assets with finite useful life their expected life and amortisation method are reviewed and adjusted

at the end of every year.(d) Impairment of intangible assets

The carrying amount of intangible assets is reduced to the recoverable amount when the recoverable amount is

less than the carrying amount.

2.Accounting policies for the internal research and development expenditure

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.20. Impairment of long-term assets

Fixed assets construction in progress intangible assets with finite useful lives investment property measured at

cost and long-term equity investments in subsidiaries joint venture and associates are tested for impairment if

there is any indication that an asset may be impaired at the balance date. If the result of the impairment test

indicates that the recoverable amount of the asset is less than its carrying amount a provision for impairment and

an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable

amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the

future cash flows expected to be derived from the asset. A provision for asset impairment is determined and

recognised on an individual asset basis. If it is not possible to estimate the recoverable amount of an individual

asset the recoverable amount of the group of assets to which the asset belongs is determined. A group of assets is

the smallest group of assets that is able to generate independent cash inflows.Goodwill that is separately presented in the financial statements is tested at least annually for impairment

irrespective of whether there is any indication that it may be impaired. In conducting the test the carrying value of

goodwill is allocated to the related asset group or groups of asset groups which are expected to benefit from the

synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset

group or a group of asset groups including the allocated goodwill is lower than its carrying amount the

corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of

goodwill that is allocated to the asset group or group of asset groups and then deducted from the carrying

amounts of other assets within the asset group or group of asset groups in proportion to the carrying amounts of

assets other than goodwill.Once the asset impairment loss mentioned above is recognised it is not allowed to be reversed for the value

recovered in the subsequent periods.

21.Long-term deferred expenses

Long-term prepaid expenses include the expenditure for improvements to fixed assets held under operating leases

and other expenditures that have been incurred but should be recognised as expenses over more than one year in

the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the

expected beneficial period and are presented at actual expenditure net of accumulated amortisation.

22.Constract Liabilities

See Note V (25) Revenue for details.

23. Employee benefits

(1) Short-term employee benefits

Short-term remunerations mainly include wages or salaries bonuses allowances and subsidies staff welfare

medical insurance work injury insurance maternity insurance housing funds labour union funds employee

education funds short-term paid absence. Short-term remunerations are recognised as current liabilities in the

accounting period in which the service has been rendered by the employees and as costs of assets or expenses to

whichever the employee service is attributable. Non-monetary benefits are measured at fair value.

（2）Post –employment benefits

The Company’s post-employment benefits scheme includes both Defined Contribution Plan (DCP) and Defined

Benefit Plan (DBP). A DCP is a pension plan under which the Company pays fixed contributions into a separate

entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient

assets to pay all employees the benefits relating to employee service in the current and prior periods. A DBP is a

pension plan that is not a defined contribution plan. During the periods of reporting the Company’s

post-employment benefits scheme mainly includes basic pension insurance and unemployment insurances both of

which are DCP.

Basic pension insurance

Employees of the Group have entered into the social pension insurance scheme organised by local labour and

social security department. The Group pays basic pension insurances to local labour and social security

department monthly according to local insurance base and corresponding rate. Local labour and social security

department is obligated to pay basic pensions to retired employees.Supplementary pension insurance

The company purchases supplementary pension insurance on behalf of employees and pays pension insurances

according to the policies of Energy Group. The amounts based on the above calculations are recognised as

liabilities in the accounting period in which the service has been rendered by the employees with a corresponding

charge to the profit or loss for the current period or the cost of relevant assets.

(3) Termination benefits

The Group provides compensation for terminating the employment relationship with employees before the end of

the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of

the employment contracts. The Group recognises a liability arising from compensation for termination of the

employment relationship with employees with a corresponding charge to profit or loss at the earlier of the

following dates: 1) when the Group cannot unilaterally withdraw the offer of termination benefits because of an

employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses related to

the restructuring that involves the payment of termination benefits.

Early retirement benefits

The Group provides early retirement benefits for employees who enrolled in internal retirement arrangement.

Early retirement benefits refer to wages and social benefit paid by the Group on behalf of the employees who have

not meet retirement age requirement but voluntarily retire after permission from the Group’s management level.The Group starts paying early retirement benefits to early retired employees from the start date of their early

retirement until they reach the statutory retirement age. For the accounting treatment of early retirement benefits

the Group adopts the same method as termination benefits that is upon confirming the termination benefits

comply with relevant conditions proposed payment of early retirement wages. and social security from the start

date of termination of services to the date of statutory retirement age are recognised as liability and recorded into

profit and loss at lump sum. The discrepancy caused by change in actuarial assumption and adjustment of welfare

standard is recorded into current profit or loss.

Early retirement benefits that are expected to be paid within one year after balance sheet date are disclosed as

current liabilities.

(4) Other long-term employee benefits

According to the Urban Employee Basic Medical Insurance (UEBMI) policy governing the Company and some of

the Group’s subsidiaries if an employee’s UEBMI contribution period who participates in basic medical insurance

for urban residents fails to reach the time requirement when the employee reaches the statutory retirement age

the employee shall continue to contribute to the UEBMI till the contribution period meets the required time. The

Group determines the amount to be contributed in the residual service period of an employee based on the present

value of the future cash flow expected to be paid for UEBMI till the required time is met which will be

recognised as long-term employee benefits liabilities with a corresponding charge to profit or loss or included in

cost of related assets.

24. Estimated Liabilities

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.

25.Revenues

Accounting policies adopted for income recognition and measurement

When the customer obtains the control of the relevant goods or services the Group recognizes the income

according to the expected amount of consideration that it is entitled to receive.(a) Revenue from sales of electricity and heat energy

When electricity and heat energy are supplied to the power grid company or customer who buy heat such power

grid company or customer gains control of electricity and the Group recognizes sales income.(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) Provide labor services

The Group provides services and recognizes the income within a certain period of time according to the progress

of completed services in which the progress of completed services is determined according to the proportion of

the incurred costs to the estimated total costs. On the balance sheet date the Group re-estimated the progress of

completed labor services to enable it to reflect the changes in performance.When the Group recognizes income according to the progress of completed labor services the part for which the

Group has obtained unconditional collection right is recognized as accounts receivable and the rest is recognized

as contract assets and the loss reserve is recognized for accounts receivable and contract assets based on expected

credit losses (Note V (9)); If the contract price received or receivable by the Group exceeds the completed labor

service the excess shall be recognized as the contract liability (Note V (22)). The Group's contractual assets and

contractual liabilities under the same contract are listed in net terms.The Group provides external bidding agency service and maintenance service.The Group provides external bidding agency service upon the completion of the bidding service revenue is

recognised based on the pricing difference between the electricity consumption of bidding and auction price and

the customer’s conventional price of electricity.The Group provides external maintenance service revenue is recognised according to the percentage completion

method determined by percentage of the total cost incurred.The adoption of different business models in similar businesses leads to differences in accounting policies for

income recognition

Not applicable

26.Government grants

Government grants refer to the monetary or non-monetary assets obtained by the Group from the government

including tax return financial subsidy and etc. Government grants are recognised when the grants can be received

and the Group can comply with all attached conditions. If a government grant is a monetary asset it will be

measured at the amount received or receivable. If a government grant is a non-monetary asset it will be measured

at its fair value. If it is unable to obtain its fair value reliably it will be measured at its nominal amount.Government grants related to assets refer to government grants which are obtained by the Group for the purposes

of purchase construction or acquisition of the long-term assets. Government grants related to income refer to the

government grants other than those related to assets. Government grants related to assets are recorded as deferred

income and recognised in profit or loss on a systemic basis over the useful lives of the assets. Government grants

related to income that compensate the incurred costs expenses or losses are recognised in profit or loss.Government grants related to income that compensate future costs expenses or losses are recorded as deferred

income and recognised in profit or loss in reporting the related costs expenses or losses; government grants

related to income that compensate incurred costs expenses or losses are recognised in profit or loss directly in the

current period. The Group applies the presentation method consistently to the similar government grants in the

financial statements.

27. Deferred income tax assets/Deferred income tax liability

Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising

between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax

asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the

taxable profit in accordance with the tax laws. No deferred tax liabilities is recognised for the temporary

differences resulting from the initial recognition of Goodwill. No deferred tax asset or deferred tax liability is

recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a

transaction other than a business combination which affects neither accounting profit nor taxable profit (or

deductible loss). At the balance sheet date deferred tax assets and deferred tax liabilities are measured at the tax

rates that are expected to apply to the period when the asset is realised or the liability is settled.

Deferred tax assets are only recognised for deductible temporary differences deductible losses and tax credits to

the extent that it is probable that taxable profit will be available in the future against which the deductible

temporary differences deductible losses and tax credits can be utilised.

Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries joint

venture and associates except where the Group is able to control the timing of reversal of the temporary

difference and it is probable that the temporary difference will not reverse in the foreseeable future. When it is

probable that the temporary differences arising from investments in subsidiaries and associates will be reversed in

the foreseeable future and that the taxable profit will be available in the future against which the temporary

differences can be utilised the corresponding deferred tax assets are recognised.

Deferred tax assets and liabilities are offset when:

?the deferred taxes are relate to the same tax payer within the Group and same fiscal authority and;?

? that tax payer has a legally enforceable right to offset current tax assets against current tax liabilities.

28. Leases

（1）Accounting of operational leasing

Operating lease expenses are recorded in relevant cost of capital or current profit or loss according to straight-line

method over the lease period.Operating lease revenue are recognised according to straight-line method over the lease period.

（2）Accounting treatment of financing leasing

When the Group acquires an asset under a finance lease the asset is measured at an amount equal to the lower of

its fair value and the present value of the minimum lease payments each determined at the inception of the lease.The difference between the fair value of the leased assets and the minimum lease payments is recognised as

unrecognised finance charges. Unrecognised finance charge under finance lease is amortised using an effective

interest method over the lease term. The minimum lease payment net of unrecognised finance charges are

disclosed as long-term payable.

29. Other significant accounting policies and estimates

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.

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 bellow 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

(b) Critical accounting estimates and key assumptions

(i) Estimates on impairment of long-term assets

As described in Note 5(20) 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.(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.

30.Change of main accounting policies and estimations

(1)Change of main accounting policies

√ Applicable □ Not applicable

The content and reason for change of

accounting policy

Approval process Remark

The Ministry of Finance promulgated the

revised Accounting Standards for Business

Enterprises No.14-Income in 2017

(hereinafter referred to as the "New

Income Standards") and the Group has

adopted the above standards and notices to

prepare the financial statements for 2020.

On April 2 2020 the 11th meeting of the

9th Board of Directors and the 8th meeting

of the 9th Board of Supervisors reviewed

and approved the Proposal on Accounting

Policy Change agreeing that the company

will implement the Accounting Standards

for Business Enterprises No.14-Income

revised by the Ministry of Finance in 2017

from January 1 2020 and make

corresponding changes to the relevant

contents of the financial statement format

according to the requirements of CK

[2019] No.6 document and change the

relevant accounting policies. Independent

directors and the Board of Supervisors of

the company respectively expressed

independent opinions and audit opinions

on this matter.

Compared with the original income standard the impact of implementing the New Income Standards on related

items in the 2020 financial statements is as follows:

Affected balance sheet items Affected amount

June 302020

Consolidated Company

Contract liabilities 6722800 -

Advance payment (6722800) -

(2) Change of main accounting estimations

□Applicable√ Not applicable

（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards

Governing Financial Instruments Revenue or Leases from year 2020

Applicable

Whether need to adjust the balance sheet account at the beginning of the year

□ Yes√ No

The explanation of no need to adjust the balance sheet account at the beginning of the year

No adjustments.

（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards

Governing Financial Instruments or Leases from year 2020

□ Applicable √ Not applicable

31.Other

VI. Taxation

1. Main categories and rates of taxes

Class of tax Tax basis Tax rate

VAT

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) Revenue from hydropower

sales

6%、9%、13%；3%( Revenue from

hydropower sales)

Consumption tax Amount of VAT paid

City maintenance and construction tax Amount of VAT paid 5% to 7%

Corporate income tax Taxable income 20% and25%

Education surcharges Amount of VAT paid 3%

Local education surcharges Amount of VAT paid 2%

House property tax

Property’s rental income or the residual

value from original value less the

deducting proportion

12% and1.2%

Environmental protection tax

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

In case there exist any taxpayer paying corporate income tax at different tax rates disclose the information

Name of taxpayer Income tax rates

Dianbai Wind power 12.5%

Qujie Wind Power 12.5%

Leizhou Wind Power 12.5%

Zhanjiang Yuheng Electric Power Maintenance and Installation

Co. Ltd.

20%

2.Tax preferences

Pursuant to the approval documents (Caishui [2008] No. 46 and Guo Shui Fa [2009] No. 80) Xuwen Wind Power

Dianbai Wind Power Qujie Wind Power and Leizhou Wind Power are exempted from enterprise income tax in the

first three years counting from the year profits are recorded and can enjoy half rate reduction in the following

three years. As the local taxation bureau considered that Xuwen Wind Power posted profits for the first time in

2012 and Dianbai Wind Power posted profits for the first time in 2016 Qujie Wind Power posted profits for the

first time in 2016 and Leizhou Wind Power posted profits for the first time in 2017 the applicable enterprise

income tax rates for Dianbai Wind Power Qujie Wind Power and Leizhou Wind Power are 12.5%12.5% and

12.5% in 2020 (2019:12.5%12.50% and 0%) respectively.

In addition 50% of VAT levied on the sales of electricity generated by Guangdong Yudean Shibeishan Wind

Power Co. Ltd. (“Shibeishan”) Guangdong Yudean Zhanjiang Wind Power Generation Co. Ltd. (“ZhanjiangWind Power”) Xuwen Wind Power Dianbai Wind Power Qujie Wind Power and Leizhou Wind Power and

Huilai Wind Power will be refunded immediately in accordance with the Notice Concerning Value Added Tax

Policies on Wind Power Generation (Cai Shui [2015] No.74)

(b) In 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 was20%（2018：20%）.(c) Pursuant to Notice on Issues Concerning the Implementation of the Preferential Catalogue of Enterprise

Income Tax for Integrated Utilisation of Resources (Cai Shui [2008] No. 47) since 1 January 2008 enterprises

use the resources listed in the Preferential Catalogue of Enterprise Income Tax for Integrated Utilisation of

Resources (2008 Edition) as the main raw materials to produce products in the above catalogue that meet national

or industry related standards and the income from above products is reduced to 90% of the total income of the

enterprises for the year. The Group’s subsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power

Plant Co. Ltd. (“Pinghai Power Plant”) use coal ash to produce commercial coal ash which meets the

above-mentioned preferential tax conditions for integrated utilisation of resources. Therefore in 2020 revenue

from sales of coal ash from Zhanjiang Electric and Pinghai Power Plant was reduced to 90% of the total income

for the year.

3.Other

(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. (“Dianbai WindPower”) Guangdong Yudean Qujie Wind Power Co. Ltd. (“Qujie Wind Power”) Guangdong Yudean LeizhouWind 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.VII. Notes on major items in consolidated financial statements

1. Monetary funds

In RMB

Items Closing balance Opening balance

Cash on hand 21592 25114

Cash at bank 5724039690 5079616855

Other cash balance 2000000 2000000

Total 5726061282 5081641969

Other note

1.As of June 302020The company’s deposit in Energy Group Finance company is 4469328465 yuan

(4468014839 yuan before December 31 2019).The deposit in Energy Finance means that deposited in Guangdong

Energy Finance Co. Ltd. (“Energy Finance”). Energy Finance is one financial institution approved by People's

Bank of China and is a subsidiary of Energy Group Co. Ltd.

（b）As of June 30 2020 the Group had no funds deposited overseas (December 31 2019: None).

（c） As of June 30 2020 other cash balances amounted to RMB 2000000 (31 December 2019: 2000000) 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.

2. Accounts receivable

(1) Accounts receivable disclosed by category

In RMB

Category

Closing balance Opening balance

Book balance Bad debt provision

Book

value

Book balance Bad debt provision

Book value

Amount

Proportio

n %

Amount

Proportio

n %

Amount

Proportio

n %

Amount

Proportio

n %

Of which：

Accrual of bad debt

provision by

portfolio

340951

2104

100% 134510 0.01%

3409377

594

3197845

885

100% 155421 0.01%

31976904

Of which：

Electricity sales

receivable

338260

8628

99.21%

3382608

628

3172505

993

99.21%

31725059

Related party

receivable

134524

0.40%

1345247

9797752 0.30% 9797752

Other

134510

0.39% 134510 1%

1331649

1554214

0.49% 155421 1% 15386719

Total

340951

2104

100% 134510 0.01%

3409377

594

3197845

885

100% 155421 0.01%

31976904

Accrual of bad debt provision by single item:

In RMB

Name

Closing balance

Book balance Bad debt provision Proportion% Reason

Accrual of bad debt provision by single item:

In RMB

Name

Closing balance

Book balance Bad debt provision Proportion% Reason

Accrual of bad debt provision by portfolio:

In RMB

Name

Closing balance

Book balance Bad debt provision Proportion%

Electricity sales receivable 3382608628 0 0%

Total 3382608628 0 --

Note：

Portfolio 1- Electricity sales receivable， As at 30 June 2020 the amount of receivables from sales of electricity ofthe Group was RMB3382608628 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%.In RMB

Name

Closing balance

Book balance Bad debt provision Proportion%

Related party receivable 13452476 0 0%

Total 13452476 0 --

Note：

Portfolio 2- Related party receivable：As at 30 June 2020 the amount of receivables from related parties of the

Group was RMB 13452476 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%.

The withdrawal amount of the bad debt provision：0

In RMB

Name

Closing balance

Book balance Bad debt provision Proportion%

Other account receivable 13451000 134510 1%

Total 13451000 134510 --

Note：

Portfolio 3- Other fund receivable: For other fund receivable except Portfolio 1 and Portfolio 2 the estimated

credit loss rate is 1%.Provision for bad debt by portfolio：

Name Closing balance

Book balance Bad debt provision Proportion%

Note：

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of

other receivables if the provision for bad debts of bills receivable is accrued according to the general model of

expected credit loss:

√ Applicable □Not applicable

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%.Portfolio 2- Related party receivable：As at 30 June 2020 the amount of receivables from related parties of the

Group was RMB 13452476 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%.

Portfolio 3- Fund receivable other than Portfolio 1 and Portfolio 2

June 302020

Book balance Bad debt provision

Amount Expected credit loss

rate for the entire

duration

Amount

Within 1 year 13451000 1% 134510

In 2020 the amount of bad debt provision of accounts receivable reversed by the Group was RMB 20911 and the

corresponding book balance was RMB 2091149. There was no bad debt provision for accounts receivable

written off this year.

Disclosure by aging

In RMB

Aging

Closing balance

Within 1 year（Including 1 year） 3408951922

1-2 years 560182

Total 3409512104

(2) Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

Category Opening balance Amount of change in the current period Closing balance

Accrual

Reversed or

collected amount

Write-off Other

Accounts

receivable

155421 20911 134510

Total 155421 20911 134510

Of which the significant amount of the reversed or collected part during the reporting period

In RMB

Name Reversed or collected amount Method

Dongguan Dejin Energy Technology Co.

Ltd.

20911 Cash

Total 20911 --

（3） Top 5 of the closing balance of the accounts receivable collected according to the arrears party

In RMB

Debtor Book amount Provision for bad debts Proportion%

GPGC 2997828713 87.93% 0

Shenzhen Power supply

Bureau

194675387 5.71% 0

GPGCZhanjiang Power

supply Bureau

157851685 4.63% 0

GPGCMaoming Power

supply Bureau

23126470 0.68% 0

Huizhou Yuxin Company 5186800 0.15% 51868

Total 3378669055 99.10%

3.Prepayments

(1) List by aging analysis:

In RMB

Aging

Closing balance Opening balance

Amount Proportion % Amount Proportion %

Within 1 year 732438434 99.79% 603944280 99.77%

1-2 years 306512 0.04% 886809 0.15%

2-3 years 885524 0.12% 115026 0.02%

Over 3 years 334555 0.05% 368218 0.06%

Total 733965025 -- 605314333 --

Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time

As at June 302020 advances to suppliers aged more than 1 year were RMB1526591 mainly including

prepayments for spare parts and materials.（2）The ending balance of Prepayments owed by the imputation of the top five parties

Name Relationship with the company Amount Proportion %

Guangdong Power Industry Fuel Co. Ltd. Related party

518984394

70.71%

Guangdong Zhutou Electric Power fuel Co. Ltd. Third party

101351474

13.81%

China Railway (Huizhou)Co. Ltd. Third party

13685587

1.86%

Guangzhu Railway Co. Ltd.Guangzhou Freight

Centre

Third party

11729603

1.60%

Guangzhu Railway Co. Ltd. Third party

6798985

0.93%

Total

652550043

88.91%

Other note：

4. Other accounts receivable

In RMB

Items Closing balance Opening balance

Interest receivable 25335356 20866069

Other accounts receivable 234568414 251935519

Total 259903770 272801588

（1）Interest receivable

1) Category of interest receivable

In RMB

Items Closing balance Opening balance

Fixed deposit 25335356 20866069

Total 25335356 20866069

2）Bad-debt provision

□ Applicable √ Not applicable

（2） Other accounts receivable

1) Other accounts receivable classified by the nature of accounts

In RMB

Nature Closing book balance Opening book balance

Sales of by-products receivable 80750117 76167059

Supplementary medical insurance fund

receivable

69862572 68705226

Land receivable deposit 23446000 23446000

Receivable petty cash 10624555 5004220

Advances receivable 8827635 8101462

Government subsidy receivable 3195054 447197

Land recovery receivable 0 46536090

Other 49608387 35274171

Total 246314320 263681425

2）Bad-debt provision

In RMB

Bad Debt Reserves

Stage 1 Stage 2 Stage 3

Total Expected credit

losses over the next

12 months

Expected credit loss over

life (no credit impairment)

Expected credit losses for

the entire duration (credit

impairment occurred)

Balance as at January 1

2020

3308193 0 8437713 11745906

Balance as at January 1

2020 in current

—— —— —— ——

--Transfer to Stage 3 -119707 119707 0

Balance as at June

302020

3188486 8557420 11745906

Loss provision changes in current period change in book balance with significant amount

□ Applicable √Not applicable

Disclosure by aging

In RMB

Aging Closing balanceWithin 1 year(Including 1 year） 171647024

1-2 years 31663721

2-3 years 10465147

Over 3 years 32538428

3-4 years 23598340

4-5 years 544316

Over 5 years 8395772

Total 246314320

3) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party

In RMB

Name Nature Closing balance Aging

Proportion of the

total year end

balance of the

accounts receivable

Closing balance of

bad debt provision

Guangdong Yudean Sales of by-products 74363831 Within 1 year 15.10% 0

Environmental

Protection Co. Ltd.receivable

Taikang Endowment

Insurance Co. Ltd.Guangdong Branch

Supplementary

medical insurance

funds shall be

receivable

69862572 Within 3 years 8.34% 0

Maoming Bohe

Xingang District

Construction

Command Office

Land receivable

deposit

23446000 3-4 years 4.76% 0

CEEC

Advance payment

due

4315439 Within 1 year 0.88% 43154

Zhuhai Bingxing

Building Material

Co. Ltd.

Sales of by-products

receivable

4275543 Within 1 year 0.87% 42755

Total -- 176263385 -- 29.95% 85909

4) Account receivables with government subsidies involved

In RMB

Name Project name Amount in year-end At the end of aging

Estimated time amount

and basis

Huilai State Taxation

Bureau

VAT is refunded

immediately

1714928Within 1 year（Including

1 year）and1-2 years（Including 2 years）

Expected to be fully

recovered by June 2021

Xuwen State Taxation

Bureau

VAT is refunded

immediately

1480126Within 1 year（Including1year）

Expected to be fully

recovered by June 2021

5. Inventories

Whether the company need to comply with the disclosure requirements of the real estate industry

（1）Category of Inventory

In RMB

Items

Closing book balance Opening book balance

Book balance

Provision for

inventory

impairment

Book value Book balance

Provision for

inventory

impairment

Book value

Raw materials 1027752007 219427 1027532580 1090379874 219427 1090160447

Parts 791517620 31533659 759983961 718858215 14790029 704068186

Other 30032029 0 30032029 22830636 0 22830636

Total 1849301656 31753086 1817548570 1832068725 15009456 1817059269

(2) Inventory depreciation reserve

In RMB

Items

Beginning of

term

Increased in current period Decreased in current period

End of term

Provision Other Transferred back Other

Raw materials 219427 0 0 0 0 219427

Parts 14790029 16743630 0 0 0 31533659

Total 15009456 16743630 0 0 0 31753086

(3) Explanation on inventories with capitalization of borrowing costs included at ending balance

(4) Assets unsettled formed by construction contract which has completed at period-end

6. Non-current assets due within 1 year

In RMB

Items Year-end balance Year-beginning balance

Margin for finance lease due within 1 year 77379009 28865131

Total 77379009 28865131

Important creditor's rights investment

In RMB

Items

Year-end balance Year-beginning balance

Par value Interest rate Actual rate

Date of

expiry

Par value Interest rate Actual rate

Date of

expiry

Other note：

7. Other current assets

In RMB

Items

Year-end balance Year-beginning balance

Contract acquisition cost 0 0

Return cost receivable 0 0

VAT to be deducted 230892145 296729796

Advance payment of income tax 9630310 7893174

Other current assets to be disposed 4208534

Carbon emission rights assets 1953696 0

Other 0 972597

Total 246684685 305595567

Other note：

On June 30 2020 the fixed assets and intangible assets to be disposed of were reclassified to other current assets

as the subsidiary Yuejia Company ceased to operate.

8. Long-term accounts receivable

(1) List of long-term accounts receivable

In RMB

Items

Closing balance Opening balance

Discount rate

interval Book balance

Provision for

inventory

impairment

Book value Book balance

Provision for

inventory

impairment

Book value

After-sale

leaseback deposit

18581834 0 18581834 65856346 0 65856346 5.97%-6.68%

Total 18581834 0 18581834 65856346 0 65856346 --

Provision for bad debts

In RMB

Bad Debt Reserves

Stage 1 Stage 2 Stage 3

Total

Expected credit

losses over the next

12 months

Expected credit loss over

life (no credit impairment)

Expected credit losses for

the entire duration (credit

impairment occurred)

Balance as at January 1

2020 in current period

—— —— —— ——

Loss provision changes in current period change in book balance with significant amount

□ Applicable √ Not applicable

9. Long-term equity investment

In RMB

Investees

Opening

balance

Increase /decrease

Closing

balance

Closing

balance

impairme

provision

Additiona

investmen

Decrease

investmen

Profits

and losses

investmen

Recogniz

ed under

the equity

method

Other

comprehe

nsive

income

Changes

in other

equity

Cash

bonus or

profits

announce

d to issue

Withdraw

al of

impairme

provision

Other

I. Joint ventures

Industrial

Fuel

6152183

2435575

6909043

5704836

Subtotal

6152183

2435575

6909043

5704836

II. Associates

Yangshan 5397723 5397723

Jiangken

Yangshan

Zhongxi

nkeng

8043666 8043666

West

Investme

1424432

3059567

1455028

Yudean

Shipping

4488695

-199263

4289432

Shanxi

Yudean

Enerty

1644203

546

9980949

2000000

1724013

038

Energy

Finance

9918823

5236343

7316190

9710839

Taishan

Power

Generatio

2085355

939

4014866

1461362

1979368

350

Yudean

Captive

2614040

6601704 1573263

2664324

Weixin

Yuntou

1962228

5111625

2013344

9632785

Huaneng

Shantou

5674330

3174769

5991807

Subtotal

5840566

262

1903428

2408714

5790037

712

9632785

Total

6455784

562

2146986

3099618

6360521

327

9632785

Other note

10. Other equity instruments investment

In RMB

Items Closing balance Opening balance

Shenzhen Energy Co. Ltd. 58464000 78246000

Shanghai Shenergy Group 328195598 322642373

GMG International Tendering Co. Ltd. 13932000 7182000

Shenzhen Capital Group Co. Ltd. 896000000 896000000

Sunshine Insurance Group Co. Ltd. 1768000000 1768000000

Southern Offshore wind power Union

Development Co. Ltd

70301000 70301000

Total 3134892598 3142371373

Itemized disclosure of the current non - trading equity instrument investment

In RMB

Name

Recognized

dividend income

Accumulating

gains

Accumulating

losses

Amount of other

comprehensive

income

transferred to

retained earning

Reasons for being

measured at fair

value and whose

changes are

included in other

comprehensive

income

Reasons for other

comprehensive

income

transferred to

retained earnings

Shenzhen Energy

Co. Ltd.

630000 42573372

Consideration of

strategic

investments

Not applicable

Shanghai

Shenergy Group

450000 92357610

Consideration of

strategic

investments

Not applicable

GMG

International

Tendering Co.Ltd.

10332000

Consideration of

strategic

investments

Not applicable

Shenzhen Capital

Group Co. Ltd.

20290444 637702560

Consideration of

strategic

investments

Not applicable

Sunshine

Insurance Group

Co. Ltd.

1412000000

Consideration of

strategic

investments

Not applicable

Southern

Offshore wind

power Union

Development

Co. Ltd

301000

Consideration of

strategic

investments

Not applicable

Other note：

(a) As at 31 June 2020 the Company held 12600000 tradable A shares in Shenzhen Energy with fair value of

RMB58464000 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 RMB19782000 (2019:income of

RMB12096000) and other comprehensive income was adjusted upwards accordingly.

(b) As at 30 June 2020 the Company held 55532250 tradable A shares in Shanghai Shenergy with fair value of

RMB328195598 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 RMB5553225 (2019:income of

RMB 51644993) and other comprehensive income was adjusted upwards accordingly.

the National Equities Exchange and Quotations system with fair value of RMB 13932000 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 6750000 (2019:income of RMB3564000) 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 30 June 2020 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 RMB18796809 (2019: Nil) and other

comprehensive income was adjusted upwards accordingly.(e) As at 30 June 2020 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 (2019: Nil) and other comprehensive income was adjusted upwards

accordingly.(f) As at 30 June 2020 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 (2019: Nil) and other comprehensive income was adjusted upwards accordingly.

11.Other non-current assets

In RMB

Items Closing balance Opening balance

Other note：

12. Investment property

(1) Investment property adopted the cost measurement mode

√Applicable □ Not applicable

In RMB

Items House Building Land use right Construction in process Total

I. Original price

1. Balance at

period-beginning

68575914 68575914

2.Increase in the current

period

(1) Purchase

(2)Inventory\Fixed

assets\ Transferred from

construction in progress

(3)Increased of

Enterprise Combination

3.Decreased amount of

the period

（1）Dispose

（2）Other out

4. Balance at period-end 68575914 68575914

II.Accumulated

amortization

1.Opening balance 16482283 16482283

2.Increased amount of

the period

1275406 1275406

(1) Withdrawal 1275406 1275406

3.Decreased amount of

the period

（1）Dispose

（2）Other out

4. Balance at

period-end

17757689 17757689

III. Impairment provision

1. Balance at

period-beginning

2.Increased amount of

the period

(1) Withdrawal

3.Decreased amount of

the period

（1）Dispose

（2）Other out

4. Balance at period-end

IV.Book value

1.Book value at period

-end

50818225 50818225

2.Book value at

period-beginning

52093631 52093631

(2) Investment property adopted fair value measurement mode

□ Applicable √Not applicable

13. Fixed assets

In RMB

Items Closing balance Opening balance

Fixed assets 39892750878 38530031244

Disposal of fixed assets 16992517 25687474

Total 39909743395 38555718718

(1) List of long-term accounts receivable

In RMB

Items House building

Machinery

equipment

Transportations Other equipment Total

I. Original price

1. Balance at

period-beginning

18608504390 58925695568 595487302 1356377715 79486064975

2.Increase in the

current period

854573242 2140569768 6237684 10225118 3011605812

(1) Purchase 1921105 6358984 6204958 7413681 21898728

（2） Transferred fr

om construction in p

rogress

852652137 2134210784 32726 2811437 2989707084

(3)Increased of

Enterprise

Combination

3.Decreased amount

of the period

344847682 880733762 17347911 30498438 1273427793

（1）Dispose 3670 880733762 8317482 30498438 919553352

（2）Other out 344844012 9030429 353874441

4. Balance at

period-end

19118229950 60185531574 584377075 1336104395 81224242994

II. Accumulated

depreciation

1.Opening balance 6941728181 31757059270 442607496 930761890 40072156837

2.Increased amount

of the period

230495696 1311291488 8006675 84317488 1634111347

(1) Withdrawal 230495696 1311291488 8006675 84317488 1634111347

3.Decreased amount

of the period

226991499 517342215 13279056 21691688 779304458

（1）Dispose 2309322 517342215 6634929 21691688 547978154

（2）Other out 224682177 6644127 231326304

4.Closing balance 6945232378 32551008543 437335115 993387690 40926963726

III. Impairment

provision

1.Opening balance 146890986 731325859 1656135 4003914 883876894

2.Increase in the

reporting period

（1）Withdrawal

3.Decreased amount

of the period

117106386 358114377 1233217 2894524 479348504

（1）Dispose 358114377 2894524 361008901

（2）Other out 117106386 1233217 118339603

4. Closing balance 29784600 373211482 422918 1109390 404528390

IV. Book value

1.Book value of the 12143212972 27261311549 146619042 341607315 39892750878

period-end

2.Book value of the

period-begin

11519885223 26437310439 151223671 421611911 38530031244

(2) List of temporarily idle fixed assets

In RMB

Items Original book value

Accumulated

depreciation

Impairment

provision

Book value Remark

(3) Fixed assets leased in from financing lease

In RMB

Items Original book value

Accumulated

depreciation

Impairment provision Book value

Jinghai financing leasing

assets

1000000000 894583333 105416667

Zhongyue financing

leasing assets

900000000 547931060 352068940

Yuejiang financing

leasing assets

1062401108 281237023 781164085

(4) Fixed assets leased in the operating leases

In RMB

Items End book value

House and Building 42567122

(5) Fixed assets without certificate of title completed

In RMB

Items Book value Reason

House and Building 155590684

Temporarily in the government approved

stage

Other note

On June 30 2020 after consulting the Group's legal advisers the management believed that there would be no

substantive legal obstacles to the handling of these property certificates and would not have a significant adverse

impact on the normal operation of the Group.

（6）Liquidation of fixed assets

In RMB

Items Closing balance Opening balance

Parts of power generation equipment have

been scrapped

16525106 24842897

Other equipment 467411 844577

Total 16992517 25687474

Other note

On June 30 2020 as the subsidiary Yuejia Company ceased to operate the original value of fixed assets to be

disposed of by Yuejia Company was RMB 353874441 the accumulated depreciation was RMB 231326304

and the impairment provision was RMB 118339603 which were reclassified to other current assets (Note VII

(7)).

14. Construction in progress

In RMB

Items Closing balance Opening balance

Construction in progress 10024950818 10881106316

Engineering Material 101523078 897530

Total 10126473896 10882003846

(1) List of construction in progress

In RMB

Items

Closing balance Opening balance

Book balance

Provision for

impairment

Book value Book balance

Provision for

impairment

Book value

Bohe Coal

integration

project

6881800482 6881800482 6608072801 6608072801

Zhuhai Jinwan

Electric offshore

wind power

project

1096557335 1096557335 398849306 398849306

Yangjiang Shapa

offshore wind

power project

478937942 478937942 390159975 390159975

Huadu thermal

and power

cogeneration

project

191800324 191800324 136704136 136704136

Qujie Wailuo

offshore wind

power project II

111383513 111383513 57038810 57038810

Lincang Dayakou

Hydropower

Station

41592791 41592791 41383032 41383032

Shajiao Ningzhou

gas power project

24722458 24722458 5821536 5821536

Xuwen Shiban 11510908 11510908 3871208 3871208

Ling wind power

project

Qujie Wailuo

offshore wind

power project I

0 0 2306302480 2306302480

Other technology

improvement

projects

715698823 715698823 576180865 576180865

Other

infrastructure

construction

projects

672253173 201306931 470946242 558029098 201306931 356722167

Total 10226257749 201306931 10024950818 11082413247 201306931 10881106316

(2) Changes of significant construction in progress

In RMB

Name Budget

Amount

at year

beginning

Increase

at this

period

Transferr

ed to

fixed

assets

Other

decrease

Balance

year-end

Proporti

on(%)

Progress

of work

Capitalis

ation of

interest

accumul

ated

balance

Includin

g：

Current

amount

capitaliz

ation of

interest

Capitalis

ation of

interestratio（%)Source

of funds

Bohe

Coal

integrati

project

110370

75900

6608072

801

273727

681

688180

0482

65.23% 90%

434647

749

718382

4.73%

Loans

from

financial

institutio

Zhuhai

Jinwan

Electric

offshore

wind

power

project

565971

0000

3988493

697708

029

109655

7335

20.64% 20.64%

278541

220303

4.09%

Loans

from

financial

institutio

Yangjian

g Shapa

offshore

wind

power

project

599971

0000

3901599

887779

478937

942

8.50% 8.50%

101843

870379

4.30%

Loans

from

financial

institutio

Huadu

thermal

and

power

cogenera

tion

project

353671

0000

1367041

550961

191800

324

5.45% 5.45%

412530

299633

3.79% Other

Qujie

Wailuo

offshore

378912

0000

5703881

543447

111383

513

3.34% 17.84%

193697

185008

3.91%

Loans

from

financial

wind

power

project II

institutio

Lincang

Dayakou

Hydropo

wer

Station

120957

8400

4138303

209759

415927

93.90% 98%

142886

856

Loans

from

financial

institutio

Shajiao

Ningzho

u gas

power

project

592760

0000

5821536

189009

247224

0.42% 0.42% 0% Other

Xuwen

Shiban

Ling

wind

power

project

460639

300

3871208

763970

115109

81% 90%

138926

79752 4.41%

Loans

from

financial

institutio

Qujie

Wailuo

offshore

wind

power

project I

373945

0000

2306302

480

526101

089

283240

3569

0 82.35% 100%

442398

Loans

from

financial

institutio

Other

technolo

improve

ment

projects

5761808

296821

473

157303

515

715698

823

587026

Other

infrastru

cture

construct

ion

projects

3567221

114224

075

470946

242

456951

199787

Other

Total

413595

93600

1088110

6316

213355

1586

298970

7084

100249

50818

-- --

690207

685

109496

456

(3) List of the withdrawal of the impairment provision of the construction in progress

In RMB

Items Amount Reason

Other note

（4）Engineering material

In RMB

Items End of term Beginning of term

Book balance

Provision for

impairment

Book value Book balance

Provision for

impairment

Book value

Special Material 1809563 729603 1079960 962696 729603 233093

Special equipment 100443118 100443118 664437 664437

Total 102252681 729603 101523078 1627133 729603 897530

Other note

15. Intangible assets

(1) Information

In RMB

Items

Land use

right

Patent

Non-patent

Technology

Transmissio

n and

Transformat

ion

Supporting

Project

Sea use

right

Transportati

on project

Franchise

right

Software Total

I. Original

price

1.Opening

balance

20684785

7356943 442517684 129906544 22468672 14795352 132513656

28180373

2.Increase

d amount

of the

period

316400945 737972 12513210 329652127

(1)

Purchase

316400945 12513210 328914155

(2)Internal

Developme

737972 737972

(3)Increased

Enterprise

Combinatio

3.Decreased

amount of

the period

4835339 190778416 7298672 202912427

（1）

Dispose

4835339 4835339

（2）

Other out

190778416 7298672 198077088

4. Balance

period-end

23800441

8094915 251739268 129906544 15170000 14795352 145026866

29447770

II.Accumul

ated

amortizatio

1. Balance

period-begi

nning

377104840 923531 409328310 25709325 21447068 10591406 94480905 939585385

2. Increase

in the

current

period

26305910 475007 1034228 141071 4596876 32553092

(1)

Withdrawal

26305910 475007 1034228 141071 4596876 32553092

3.Decreased

amount of

the period

4809202 157589042 6277068 168675312

（1）

Dispose

4809202 4809202

（2）

Other out

157589042 6277068 163866110

4. Balance

period-end

398601548 1398538 251739268 26743553 15170000 10732477 99077781 803463165

III.Impairment

provision

1. Balance

period-begi

nning

56502373 33189374 1021604 90713351

2. Increase

in the

current

period

(1)

Withdrawal

3.Decreased

amount of

the period

33189374 1021604 34210978

（1）

Dispose

（2）

Other out

33189374 1021604 34210978

4. Balance

period-end

56502373 0 0 56502373

4. Book

value

1.Book

value at

period -end

19249402

6696377 0 103162991 0 4062875 45949085

20848115

2.Book

value at

period-begi

nning

16348713

6433412 0 104197219 0 4203946 38032751

17877386

The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of

the balance of intangible assets

⑵Details of Land use right failed to accomplish certification of property

In RMB

Items Book value Reason

Land use right 32911453 Land use approval procedure in progress

Other note

As at 30 June 2020 the Group had obtained land use right certificates for all of its lands except for lands with

carrying amount of RMB32911453 (31 December 2019: RMB 33348275) 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.On June 30 2020 as the subsidiary Yuejia Company ceased to operate the original value of power transmission

and transformation supporting projects microwave projects and transportation projects of Yuejia Power to be

disposed of was RMB 198077088 the accumulated amortization was RMB 163866110 and impairment

provision was RMB 34210978 which were reclassified from intangible assets to other current assets (Note VII

(7)).

16. Development expenditure

In RMB

Items

Balance in

year-begin

Increase Decrease

Closing

balance

Internal

development

expenditure

Other

Recognition

of intangible

assets

Transfers to

current gains

Development

expenditure

0 737972 737972 0

Total 0 737972 737972 0

Other note

17. Goodwill

(1) Original book value of goodwill

In RMB

Name of the Opening balance Increase Decrease Closing balance

investees or the

events formed

goodwill

The merger of

enterprises

disposition

Guangdong Wind

Power Generation

Co. Ltd.

2449886 2449886

Lincang

Company

25036894 25036894

Total 27486780 27486780

（2）Impairment provision of goodwill

In RMB

Name of the

investees or the

events formed

goodwill

Opening balance

Increase Decrease

Closing balance

Provision disposition

Lincang

Company

-25036894 -25036894

Total -25036894 -25036894

Relevant information about the asset group or asset group combination in which goodwill resides

Describe the goodwill impairment test process key parameters (e.g. forecast period growth rate stable period

growth rate profit margin discount rate and forecast period when forecasting the present value future cash flow)

and the recognition method of goodwill impairment loss

Impact of goodwill impairment test

Other note

18.Long-term amortization expenses

In RMB

Items

Balance in

year-begin

Increase at this

period

Amortization

balance

Other decrease Balance in year-end

Long-term lease

charges

15287462 0 1014083 0 14273379

Improvements to

fixed assets held

under operating

leases

4115789 236264 608836 0 3743217

Other 70335 0 8057 0 62278

Total 19473586 236264 1630976 0 18078874

Other note

19.Deferred income tax assets/deferred income tax liabilities

(1)Details of the un-recognized deferred income tax assets

In RMB

Items

Balance in year-end Balance in year-begin

Deductible temporary

difference

Deferred income tax

assets

Deductible temporary

difference

Deferred income tax

assets

Provision for asset

impairments

384259330 95915779 408154790 101889644

Intra-group transactions 157833563 39458391 166852624 41713156

Deductible losses 672609893 121928285 686911585 171727895

Net income from test run

included in construction

in progress

209580236 49967756 209580236 49967756

Amortisation of

pre-operating costs

165954215 41488554 165954215 41488554

Employee benefits

payable

103644393 25911098 103644393 25911098

Government grants 86420159 21605041 86420159 21605041

Depreciation of fixed

assets

98784516 24696129 75431480 18857870

Amortisation of

intangible assets

5033260 1258318 4490857 1122714

Total 1884119565 422229351 1907440339 474283728

(2)Details of the un-recognized deferred income tax liabilities

In RMB

Items

Balance in year-end Balance in year-begin

Temporarily Deductable

or Taxable Difference

Deferred Income Tax

liabilities

Temporarily Deductable

or Taxable Difference

Deferred Income Tax

liabilities

Changes in fair value of

available-for-sale

financial assets included

in other comprehensive

income

2195266543 548816635 2202745317 550686330

Net expenses in test run

included in construction

in progress

38741129 9685282 38741129 9685282

Amortisation of land use

rights

16451826 4112957 16451826 4112957

Interest receivable 3341332 835333 3341332 835333

Depreciation of fixed

assets

2560854 640214 2560854 640214

Total 2256361684 564090421 2263840458 565960116

(3) Deferred income tax assets or liabilities listed by net amount after off-set

In RMB

Items

Trade-off between the

deferred income tax

assets and liabilities

End balance of deferred

income tax assets or

liabilities after off-set

Trade-off between the

deferred income tax

assets and liabilities at

period-begin

Opening balance of

deferred income tax

assets or liabilities after

off-set

Deferred income tax

assets

28574502 393654849 28574502 445709226

Deferred income

liabilities

28574502 535515921 28574502 537385614

(4)Details of income tax assets not recognized

In RMB

Items Balance in year-end Balance in year-begin

Deductible temporary difference 1421810497 1435936580

Deductible loss 1701522119 1467976248

Total 3123332616 2903912828

(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years

In RMB

Year Balance in year-end Balance in year-begin Remark

2020 0 172104

2021 299550467 141098222

2022 603896902 603896902

2023 567573810 567573810

2024 152521430 155235210

2025 77979510 0

Total 1701522119 1467976248 --

Other note：

20. Other non-current assets

In RMB

Items

Balance in year-end Balance in year-begin

Book balance Provision for

devaluation

Book value Book balance Provision for

devaluation

Book value

Prepayments for equipment fund 205556044 205556044 971323399 971323399

5 5

Prepayments for construction fund

145753511

488163133 488163133

VAT input to be offset 929398501 929398501 881814121 881814121

Unrealised losses on sale and lease back 337932432 337932432 346314528 346314528

Prepayment for land use rights 111055612 111055612 64424212 64424212

Prepayment for income tax 1458911 1458911 1451903 1451903

Other 1695245 1695245 367692 367692

Total

489463626

275385898

Other note：

21. Short-term borrowings

(1) Category of short-term borrowings

In RMB

Items Closing balance Opening balance

Credit borrowings 6947498951 5904132791

Total 6947498951 5904132791

Note：

22.Notes payable

In RMB

Items Closing balance Opening balance

Commercial acceptance 522992546 570000000

Bank acceptance bills 957000000 794236650

Total 1479992546 1364236650

Amount due in next fiscal period is RMB0.00.

23. Accounts payable

(1) List of accounts payable

In RMB

Items Closing balance Opening balance

Fuel payable 2229264706 2042046703

Materials and spare parts payable 445951829 372739371

Other 53275074 50368088

Total 2728491609 2465154162

（2）Significant accounts payable that aged over one year

In RMB

Items Balance in year-end

The reason for not repaid or carried forwar

Materials and spare parts payable 38110586.35

Total 38110586.35 --

As at 30 June 2020 accounts payable with ageing over one year amounted RMB38110586 (31 December 2019:

RMB37429105) mainly unsettled fuel payable

Other note：

24. Advance from customers

(1) List of advance from customers

In RMB

Items Closing balance Opening balance

Advances for grid payment 155328 207428

Other 505716 225286

Total 661044 432714

25.Contract Liabilities

单位：元

Items Closing balance Opening balance

Contract liabilities 6722800 0

Total 6722800

The amount and reasons of significant changes in book value during the reporting period

In RMB

Items Change amount Reason for change

Contract liabilities 6722800

Due to the implementation of the New Income Standards the

Company reclassified the advance receipts related to the provision

of labor services to contract liabilities.Total 6722800 ——

26. Payroll payable

(1) List of Payroll payable

In RMB

Items Opening balance Increase Decrease Closing balance

Short-term compensation 210052524 797590348 648068121 359574751

Post-employment

benefits - defined

contribution plans

3386520 61012467 61217991 3180996

Dismissal welfare 29071494 6161544 12062325 23170713

Total 242510538 864764359 721348437 385926460

（2）Presentation of short-term compensation

In RMB

Items Opening balance Increase Decrease Closing balance

1.Wages bonuses

allowances and subsidies

0 594155357 470085986 124069371

2.Employee welfare 3089748 56551672 49145445 10495975

3. Social insurance

premiums

108737231 43758107 34029147 118466191

Including：Medical

insurance

108737231 40643635 30927985 118452881

Work injury insurance 0 122647 122647 0

Maternity insurance 0 2991825 2978515 13310

4. Public reserves for

housing 0 64335677 63862500 473177

5.Union funds and staff

education fee 92290273 20738144 16072013 96956404

8.Other

Short-term remuneration

5935272 18051391 14873030 9113633

Total 210052524 797590348 648068121 359574751

（3）Defined contribution plans listed

In RMB

Items Balance in year-begin Increase in this period Payable in this period Balance in year-end

1. Basic old-age

insurance premiums

0 20224532 20224532 0

2.Unemployment

insurance

0 1298344 1298344 0

3. Annuity payment 3386520 39489591 39695115 3180996

Total 3386520 61012467 61217991 3180996

Other note：

27.Tax Payable

In RMB

Items Closing balance Opening balance

VAT 358582861 330790264

Enterprise Income tax 342489753 186789728

Individual Income tax 1090915 14877406

City Construction tax 13645037 13996062

House property Tax 18855019 0

Education surcharges 11932493 12344489

Land use tax 4133324 0

Other 17214791 12579202

Total 767944193 571377151

Other note：

28.Other payable

In RMB

Items Closing balance Opening balance

Dividend payable 9771322 9771322

Other payable 4549728506 4032345775

Total 4559499828 4042117097

（1）Dividends payable

In RMB

Items Closing balance Opening balance

Payable to non current shareholders of the

Company

9771322 9771322

Total 9771322 9771322

Other explanations for important dividend payable that has not been paid for more than 1 year reasons for

non-payment shall be disclosed:

This part of dividends is mainly payable to shareholders of non-tradable shares who have not gone through the

formalities of share-trading reform. This part of dividends will be paid after the formalities are completed.

（2）Other payable

（1）Disclosure by nature

In RMB

Items Closing balance Opening balance

Construction and equipment payable 4273791134 3754518279

Engineering quality guarantee payable 67741779 109048438

State Oceanic Administration penalty

payable

11531700 11531700

Other 196663893 157247358

Total 4549728506 4032345775

(2) Other payables with large amount and aging of over one year

In RMB

Items Closing balance Reason

Other payable 164420415 Failure to meet payment terms

Total 164420415 --

Other note

Mainly used to cope with project funds and retention money. Since the project has not finished the project and

acceptance and final settlement or in the warranty period of acceptance the project funds and retention money has

not been settled.

29.Non-current liabilities due within 1 year

In RMB

Items Closing balance Opening balance

Long-term loans due in 1 year 2513873731 2758340013

Bond payable due in 1 year 40299969

Long-term Account payable due in 1 year 258801025 333082890

Long-term loans Interest payable due in 1 year 53090380 29822181

Bond payable Interest payable due in 1 year 23390602 21081263

Long-term Account Interest payable due in 1 year 2120596 354166

Total 2851276334 3182980482

Other note：

30. Other current-liabilities

In RMB

Items Closing balance Opening balance

Short-term bond payable 1108353973 1912282192

Total 1108353973 1912282192

Changes in short-term debentures payable：

In RMB

Name

Face

value

Issuance

date

Maturity

period

Issuance

amounts

Balance

at the

beginning

of the

year

Issuance

during the

year

Interest at

face value

Amortisat

ion of

discounts

premium

Repayme

nt for the

period

Balance

at the end

of the

year

Third

batch of

short-ter

financing

bonds

issued of

2019

9000000

14/08/201

180 days

9000000

9089876

0 2963149 0

9119508

Fourth

batch of

short-ter

financing

bonds

issued of

2019

1000000

000

15/11/201

180 days

1000000

000

1003294

521

0 8016954 0

1011311

475

First

batch of

short-ter

financing

bonds

issued of

2020

1100000

000

20/02/202

180 days

1100000

000

1100000

000

8353973 0 0

1108353

973

Total -- -- --

3000000

000

1912282

192

1100000

000

1933407

1923262

295

1108353

973

Other note：

31.Long-term borrowings

（1）Long-term term borrowings

In RMB

Items Closing balance Opening balance

Pledged borrowings 4063049699 3990384684

Guarantee loan 39543750 45457500

Credit loans 13342351723 12551261196

Total 17444945172 16587103380

Other notes including interest rate range：

32.Bond payable

（1）Bond payable

In RMB

Items Closing balance Opening balance

The first issue of the medium-term note in

2018

799257333 798857333

Public Issuance of Corporate Bonds to

Qualified Investors in 2020 (Phase I)

1500000000

16 Pinghai 01Bond 698472465 697774466

Total 2997729798 1496631799

（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual

capital securities that classify as financial liability

In RMB

Name of

the bond

Book

value

Issue date Period

Issue

amount

Opening

balance

The

current

issue

Withdraw

interest at

par

Overflow

discount

amount

Pay in

current

period

Other

Closing

balance

The first

issue of

the

medium-t

erm note

in 2018

8000000

2018/8/27 3 years

8000000

7988573

1676000

400000

7992573

Public

Issuance

Corporate

Bonds to

Qualified

Investors

in 2020

(Phase I)

1500000

000

2020/4/29 3+2 years

1500000

000

1500000

000

6329167 0

1500000

000

Pinghai

01Bond

7000000

2016/9/26 3+2 years

7000000

6977744

1468638

697999

6984724

64.41

Total -- -- --

3000000

000

1496631

799

1500000

000

3777555

1097999

2997729

798

(3) Note to conditions and time of share transfer of convertible bonds

33. Long-term payable

In RMB

Items Closing balance Opening balance

Long-term payable 2557869825 2414256713

Special payable 40088380 71089532

Total 2597958205 2485346245

(1) Long-term payable listed by nature of the account

In RMB

Items Closing balance Opening balance

Financing lease 2467869825 2324256713

Share repurchase payable 90000000 90000000

Other note：

（2）Specific payable

In RMB

Items Opening balance Increase Decrease Closing balance Cause

Supporting funds for

expansion

24960000 0 0 24960000

Special fund for

supply of water

power and heat and

property

management

31001152 734274 31735426 0

Liquidation balance

of enterprises with

diversified

businesses

15128380 0 0 15128380

Total 71089532 734274 31735426 40088380 --

Other note：

(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.

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.

34. Long-term employee salary payable

（1）Long-term employee salary payable

In RMB

Items Closing balance Opening balance

II. Termination benefits 87566559 101999537

III. Other Long-term benefits 38829964 32989323

Total 126396523 134988860

35. Deferred income

In RMB

Items Opening balance Increase Decrease Closing balance Cause

Government subsidy 139256513 232992 1615884 137873621

Asset-related

government grants

received

Total 139256513 232992 1615884 137873621 --

Details of government subsidies：

In RMB

Items

Beginning of

term

New subsidy

in current

period

Amount

transferred to

non-operatio

nal income

Other income

recorded in

the current

period

Amount of

cost deducted

in the current

period

Other

changes

End of term

Asset-related

income-relate

Compensatio

n for

relocation

and

renovation of

Shajiao A

Zhenkou

pump house

22245433 22245433

Related to

assets

Special funds

for #1-#3

generators’

desulfurisatio

n project

17714334 17714334

Related to

assets

Energy

saving grants

15270657 1022589 14248068

Related to

assets

Tax refund

for

PRC-made

equipment

12629142 12629142

Related to

assets

Comprehensi

technology

upgrading for

the energy

saving of

1&2#

generator

units turbine

by Zhongyue

Energy

8461538 8461538

Related to

assets

Development

and

competitiven

ess funds

from SASAC

7333333 7333333

Related to

assets

Second

incentives for

comprehensi

ve and

typical

demonstratio

n projects

under

financial

policies of

energy saving

7200000 450000 6750000

Related to

assets

Post

rewarding

subsidies for

ultra-low

emissions of

1&2#

generators

6279149 6279149

Related to

assets

Incentives for

energy

efficiency of

power plant

by Zhongyue

Energy

4436729 4436729

Related to

assets

Incentives for

energy

efficiency of

power plant

by Dongguan

6590750 6590750

Related to

assets

Post

rewarding

subsidies for

ultra-low

emissions of

designated

account of

special fund

in Maonan

District of

3727308 3727308

Related to

assets

Maoming in

2018

Incentives for

energy

efficiency of

power plant

by Zhanjiang

3062182 3062182

Related to

assets

Dianbai

Reshui wind

power plant

project

3000000 3000000

Related to

assets

Expansion on

flow

reconstructio

n project

2900038 2900038

Related to

assets

Shajiao A -

2016 central

finance

energy saving

funds

2822499 2822499

Related to

assets

Special prize

funds of

recycle

economy and

energy saving

by Shenzhen

2218155 2218155

Related to

assets

Government

subsidies

from the

financial

treasury

payment

centre of

Qujiang

District

Shaoguan

2651208 2651208

Related to

assets

Energy

saving funds

2185045 2185045

Related to

assets

Other 8529013 232992 143295 8618710

Related to

assets

Other note：

36. Other non-current liabilities

In RMB

Items Closing balance Opening balance

Capital injection 200000000 216405569

Total 200000000 216405569

Other note

In 2017 Yuejiang Power Generation Company a subsidiary of the Group received a capital contribution of RMB

16405569 from minority shareholders which was transferred to minority shareholders' equity in 2020.

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.

37.Stock capital

In RMB

Balance in

year-begin

Changed（+，-）

Balance in

year-end

Issuance of

new share

Bonus shares

Capitalization

of public

reserve

Other Subtotal

Total of capital

5250283986 5250283986

Other note：

38. Capital reserves

In RMB

Items Year-beginning balance Increase in the current

period

Decrease in the current

period

Year-end balance

Share premium 4543959053 4543959053

Other capital reserves 2919327 2919327

Estimate Increase 119593718 119593718

Investment from Energy

Group

395000000 395000000

Share of interests in the

investee in proportion to

the shareholding

14971484 14971484

Transfer of capital

surplus recognised under

the previous accounting

20474592 20474592

system

Total 5096918174 5096918174

Other notes including the note to its increase/decrease and the cause(s) of its movement in the reporting period:

39.Treasury stock

In RMB

Items

Year-beginning

balance

Increase in the current

Decrease in the current

period

Year-end balance

Other notes including the note to its increase/decrease and the cause(s) of its movement in the reporting period:

40. Other comprehensive income

In RMB

Items

Year-beginn

ing balance

Amount of current period

Closing

balance

Amount

incurred

before

income tax

Less：

Amount

transferred

into profit

and loss in

the current

period that

recognied

into other

comprehensi

ve income in

prior period

Less：Prior

period

included

in other

composite

income

transfer to

retained

income in

the current

period

Less：

Income

tax

expenses

After-tax

attribute to

the parent

company

After-tax

attribute to

minority

shareholde

I. Other comprehensive income

that will not be subsequently

reclassified to profit or loss

16759225

-7478775 -1869693 -5609082

167031

3494

Other comprehensive income that

cannot be transferred to profit or

loss under equity method

23863586

238635

Changes in fair value of

investments in other equity

instruments

16520589

-7478775 -1869693 -5609082

164644

9908

II. Other comprehensive income

that will be subsequently

reclassified to profit or loss

220468 220468

Including：Share of other

comprehensive income of the

investee that cannot be transferred

to profit or loss accounted for

using the equity method

220468 220468

Total of other comprehensive

income

16761430

-7478775 -1869693 -5609082

167053

3962

Other notes include the valid part of gain and loss of a cash-flow hedge converted into initial amount of arbitraged

items for adjustment:

41. Special reserves

In RMB

Items Year-beginning balance Increase in the current

period

Decrease in the current

period

Year-end balance

Statutory surplus reserve 2828966001 77026584 2905992585

Optional surplus reserves 5416801592 192566461 5609368053

Total 8245767593 269593045 8515360638

42. Retained profits

In RMB

Items Amount of this period Amount of last period

Before adjustments: Retained profits in last period

end

5909128280 5490006140

After adjustments: Retained profits at the period

beginning

5909128280 5490006140

Add: Net profit attributable to owners of the

Company for the period

813684495 581569383

Less: Appropriation to statutory surplus reserve 77026584 117603557

Drawing discretionary surplus reserve 192566461 294008893

Drawing Common risk provision 630034078 315017039

Retained profits at the period end 5823185652 5344946034

As regards the details of adjusted the beginning undistributed profits

(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations the affected

beginning undistributed profits are RMB 0.00.

(2) As the change of the accounting policy the affected beginning undistributed profits are RMB 0.00.

(3) As the correction of significant accounting error the affected beginning undistributed profits are RMB 0.00 .

(4) As the change of consolidation scope caused by the same control the affected beginning undistributed profits

are RMB 0.00

(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .

43. Business income Business cost

In RMB

Items

Amount of current period Amount of previous period

Income Cost Income Cost

Main business 12359160846 10137771229 12744689154 11021172212

Other business 180756977 13201793 129492096 2971264

Total 12539917823 10150973022 12874181250 11024143476

Income related information:

In RMB

Contract classification Division 1 Division 2 Total 合计

Including：

Electric power 12249310829 12249310829

Thermal Energy 68698614 68698614

Generation by-product 145845255 145845255

Labor service 63172626 63172626

Rent 11423427 11423427

Other 1467072 1467072

Including：

Guangdong 12517016866 12517016866

Yunnan 22900957 22900957

Including：

Power market 12249310829 12249310829

Other market 290606994 290606994

Including：

Sell goods 12465321769 12465321769

Service 63172626 63172626

Assets use rights 11423428 11423428

Including：

Recognize at a certain

time point

12465321769 12465321769

Recognize in a certain

period of tim

74596054 74596054

Including：

Total 12539917823 12539917823

Information related to performance obligations:

Commodity type Usual performance time of performance obligation Important payment terms Commodity nature

Electric power When power is supplied to the grid company Cash settlement/monthly

settlement

Electric power

Heat energy When heat energy is supplied to customers who buy

heat

Cash settlement/monthly

settlement

Heat energy

Power generation

by-products

When by-products such as fly ash generated by power

generation are transported to the agreed delivery place

Cash settlement/monthly

settlement

Power generation

by-products

Labor service Service provision period Cash settlement/monthly

settlement

Labor service

Information related to the transaction price apportioned to the residual performance obligation:

The income corresponding to the performance obligations that have not been performed or have been performed

incompletely but the contract has been signed at the end of the reporting period is RMB 0 of which RMB 0 is

expected to be recognized as income in the year RMB 0 is expected to be recognized as income in the year and

RMB 0 is expected to be recognized as income in the year.

Other note

44. Business tax and subjoin

In RMB

Items Amount of current period Amount of previous period

Urban construction tax 29825058 30241304

Education surcharge 22897084 24907806

Resource tax 0 0

Property tax 23444528 22352992

Land use tax 5061833 5461173

vehicle and vessel usage tax 412002 83028

Stamp tax 11158662 6314189

Environmental protection tax 5352910 3985003

Other 0 19863

Total 98152077 93365358

Other note:

45.Selling expenses

In RMB

Items Amount of current period Amount of previous period

Employee’s remuneration 19851760 11185482

Business expense 634957 913871

Publicity Expenses 289093 67665

Depreciation expenses 371964 110473

Other 1746783 567297

Total 22894557 12844788

Other note:

46.Administrative expenses

In RMB

Items Amount of current period Amount of previous period

Employee’s remuneration 161938884 129857707

Amortization of intangible assets 29226650 29404100

Depreciation expenses 23540759 23986049

Fire safety expenses 17401896 17319844

Property management expenses 12697371 13258724

Insurance expenses 5030478 1102110

Agency fee 4683784 4272891

Rental expenses 3923000 2999404

Afforestation fee 3518796 3240225

Office expenses 3727413 3772065

Consulting fee 1339055 507869

Travel expenses 1210024 2674485

Entertainment expenses 1089133 1322204

Low consumables amortization 1015180 363422

Expenses on board meetings 387661 318139

Other 30945589 36485566

Total 301675673 270884804

Other note：

47. R&D Expense

In RMB

Items Amount of current period Amount of previous period

System maintenance fees 161909 269693

Outsourced research and development

expenses

9434 77830

Other 659766 0

Total 831109 347523

Other note：

48.Financial Expenses

In RMB

Items Amount of current period Amount of previous period

Interest expenses

594291506 664009453

Interest income

-35840406 -31661505

Other 2863805 3048022

Total 561314905 635395970

Other note：

49.Other income

In RMB

Other sources of revenue Amount of the Current Term Amount of the Previous Term

Revenue from timely levy and refund of

VAT

4513774 5546395

Government subsidies related to assets 1615884 573598

VAT surcharge is refunded 0 32205414

Other 7359057 1147449

50. Investment income

In RMB

Items Amount of this period Amount of last period

Long-term equity investment income by equity

method

214698621 273618214

Investment income from the disposal of

transactional financial assets

252763

Dividends earned during the holding period on

investments in other equity instrument

21370444 30580379

Total 236069065 304451356

Other note：

51. Gains on the changes in the fair value

In RMB

Other sources of revenue Amount of the Current Term Amount of the Previous Term

Transactional financial assets 30626

Total 30626

Other note：

52. Credit impairment loss

In RMB

Items Amount of the Current Term Amount of the Previous Term

Loss of bad debts in other receivables -22446

Loss of bad accounts receivable 20911 -500995

Total 20911 -523441

Other note：

53. Losses from asset impairment

In RMB

Items Amount of the Current Term Amount of the Previous Term

II. Loss of inventory price and Impairment -16743630 0

of contract performance costs

Total -16743630

Other note：

54.Assets disposal income

In RMB

Source Amount of this period Amount of last period

Income from disposal of Fixed assets 51176776 0

55. Non-Operation income

In RMB

Items Amount of current period Amount of previous period Recorded in the amount of the

non-recurring gains and losses

Gain on disposal of non-current

assets

8035492 0 8035492

Carbon emissions quota

disposal proceeds

2720755 0 2720755

Claims and Compensation

Income

2843081 346670 2843081

Other 3268594 4946517 3268594

Total 16867922 5293187 16867922

Government subsidy reckoned into current gains/losses

Not applicable

56．Non-current expenses

In RMB

Items

Amount of current period Amount of previous period The amount of non-operating

gains & losses

Foreign donations 138137 43072 138137

Loss on obsolescence of

non-current assets

1124738 13971117 1124738

Fine for delaying payment 2784751 250472 2784751

Carbon emission rights assets

used for performance

6601136 0 6601136

Expenditure of "three supply

and one Industry"

Transformation Project

0 4775708 0

Other 2378831 1194327 2378831

Total 13027594 20234696 13027594

Other note：

57. Income tax expenses

（1）Income tax expenses

In RMB

Items

Amount of current period Amount of previous period

Current income tax expense 421812657 259701729

Deferred income tax expense 51066755 50134201

Total 472879412 309835930

（2）Adjustment on accounting profit and income tax expenses

In RMB

Items Amount of current period

Total profits 1691928645

Income tax expenses calculated on legal / applicable tax rate 422982161

Effect of different tax rate applicable to the subsidiary Company -12435293

Influence of income tax before adjustment 0

Influence of non taxable income -27180745

Impact of non-deductible costs expenses and losses 490703

Utilisation of deductible losses for which no deferred tax asset

was recognised in previous periods

-678445

Deductible temporary differences for which no deferred tax asset

was recognised in the current period

39750514

Utilisation of deductible temporary differences for which no

deferred tax asset was recognised in previous periods

-14355612

Tax filing differences of income tax in prior years 13255311

Transfer-out of deductible losses for which deferred tax asset

was recognised

49305800

Income tax expenses 472879412

Other note：

58. Other comprehensive income

Refer to the notes 40

59.Items of Cash flow statement

（1）Other cash received from business operation

In RMB

Interest income Amount of current period Amount of previous period

Government Subsidy 30094472 32169354

Insurance indemnity 7080364 406900

Rent income 6406134 2818641

Other 7443726 8428819

Total 129102968 118405215

Total 180127664 162228929

(2)Other cash paid related to operating activities

In RMB

Items Amount of current period Amount of previous period

Insurance expenses 60766847 43682878

Equipment cleaning and hygiene green fee 11827265 11124545

Transportation fee 9854130 11201658

Fire guard fee 15519230 16275293

Business fee 1335015 1805882

Agency Charge 5244325 4804268

Office Expense 4230271 3982263

Travel expenses 1855526 3857890

Rental fee 8116972 5804293

Enterprise publicity expenses 2220034 2001013

Information system maintenance 2987286 2842793

Water and electrical 16514263 20708798

R&D 546572 352193

Property Management fee 10267042 11745589

Automobile cost 8143840 6557024

Union expenses 3416782 6093910

Other 186511647 198476811

Total 349357047 351317101

(3)Cash received related to other investment activities

Not applicable

(4)Cash paid related to other investment activities

Not applicable

（5）Other cash received in relation to financing activities

Not applicable

（6）Cash paid related with financing activities

Not applicable

60. Supplement Information for cash flow statement

（1）Supplement Information for cash flow statement

In RMB

Supplement Information Amount of current period Amount of previous period

I. Adjusting net profit to cash flow from

operating activities -- --

Net profit 1219049233 855853289

Add: Impairment loss provision of assets 16743630

Depreciation of fixed assets oil and gas

assets and consumable biological assets

1634111347 1861598620

Amortization of intangible assets 32553092 30100103

Amortization of Long-term deferred

expenses

1630976 2063845

Loss on disposal of fixed assets intangible

assets and other long-term deferred assets

-61836734

Financial cost 594291506 665863419

Loss on investment -236069065 -304451356

Decrease in deferred income tax assets 52054377 -8186403

Increased of deferred income tax liabilities 67050296

Decrease of inventories -489301 -330356725

Decease of operating receivables 285504917 213746816

Increased of operating Payable 480677919 750159897

Net cash flows arising from operating

activities

4018221897 3803441801

II. Significant investment and financing

activities that without cash flows:

-- --

3．Movement of cash and cash equivalents： -- --

Ending balance of cash 5724061282 5196622875

Less: Beginning balance of cash equivalents 5079641969 5570382892

Net increase of cash and cash equivalents 644419313 -373760017

(2) Net Cash paid of obtaining the subsidiary

In RMB

Amount

Including： --

Other note：

(3) Net Cash receive of disposal of the subsidiary

In RMB

Amount

Including： --

Other note：

(4) Component of cash and cash equivalents

In RMB

Items Year-end balance Year-beginning balance

I. Cash 5724061282 5079641969

Including：Cash at hand 21592 25114

Demand bank deposit 5724039690 5079616855

III. Balance of cash and cash equivalents at

the period end

5724061282 5079641969

Other note：

61. Note of statement of changes in the owner's equity

Specify the description of the item "others" and the adjusted amount of the balance at the end of last year:

62. The assets with the ownership or use right restricted

In RMB

Items Closing book value Causation of limitation

Monetary funds 2000000

It is the margin deposit that Huizhou

Pingdian Integrated Energy Co. Ltd.("Pingdian Integrated") a subsidiary of the

Group applied to the bank to issue a

performance guarantee for participating in

the electricity sales business in Guangdong

Electric Power Trading Center.

Fixed assets 1238649692 Financial leased fixed assets.

Construction in process 1863118149 Financial leased Construction in process

Total 3103767841 --

Other note：

63. Foreign currency monetary items

(1) Foreign currency monetary items

In RMB

Items

Closing foreign currency

balance

Exchange rate

Closing convert to RMB

balance

Monetary capital -- -- 13078.76

Including：USD 189.81 7.0795 1343.76

Euro

HKD 12847 0.9134 11735

Account receivable -- --

Including：USD

Euro

HKD

Long –term borrowings -- -- 59988340

Including：USD 8473528 7.0795 59988340

Euro

HKD

Long-term loans due within one

year

9142586

Including：USD 961444 7.0795 6806543

Euro 293436 7.9610 2336043

Other note：

(2) Note to overseas operating entities including important overseas operating entities which should be disclosed

about its principal business place function currency for bookkeeping and basis for the choice. In case of any

change in function currency the cause should be disclosed.

□ Applicable √ Not applicable

64. Government subsidies

（1）Government subsidies confirmed in current period

In RMB

Items Amount Project

Amount included in current

profit and loss

VAT collected and refunded

immediately

4513774 Other income 4513774

Government subsidies related to

assets

1615884 Other income 1615884

Other 7359057 Other income 7359057

65.Other

VIII. Changes of merge scope

1. Business merger not under same control

Subsidiaries established during the year：

Subsidiaries Major business

location

Place of

registration

Nature of

business

Registered

capital

Shareholding% Acquisition

method

Guangdong

Yudean Daya

Bay Energy

Co. Ltd.

Huizhou Huizhou Electric Power 22，000，000 80% Establish

Guangdong

Yudean Qiming

Energy Co.

Ltd.Shenzhen Shenzhen Electric Power 20，000，000 100% Establish

2.Other

IX. Equity in other entity

1. Equity in subsidiary

（1）Constitute of enterprise group

Subsidiary Main operation Registered place Business nature

Share-holding ratio

Acquired way

Directly Indirectly

Maoming

Zhenneng

Maoming Maoming

Electric power

46.54% Establish

Jianghai Power Jieyang Jieyang Electric power 65% Establish

Zhangjiang Wind

Power

Zhanjiang Zhangjiang Electric power 70% Establish

Anxin Electric

Power Maintenance

Dongguan Dongguan Electric power 100% Establish

Humen Power Dongguan Dongguan Electric power 60% Establish

Bohe Electric

Power

Maoming Maoming Electric power 67% Establish

Yuheng

Electronic

Zhanjiang Zhanjiang Service 76%

Business

combination

under common

control

Xuwen Wind

Power

Zhangjiang Zhanjiang Electric power 70% Establish

Huadu Natural

gas

Guangzhou Guangzhou Electric power 65% Establish

Dapu Power Meizhou Meizhou Electric power 100% Establish

Leizhou Wind

Power

Leizhou Leizhou Electric power 80% 14% Establish

Dianbai Wind

Power

Maoming Maoming Electric power 100% Establish

Zhanjiang Power Zhangjiang Zhangjiang Electric power 76%

Business

combination

under common

control

Yuejia Power Meizhou Meizhou Electric power 58%

Business

combination

under common

control

Yuejiang Power Shaoguan Shaoguan Electric power 90%

Business

combination

under common

control

Zhongyue Energy Zhanjiang Zhanjiang Electric power 90%

Business

combination

under common

control

Electric sales Guangzhou Guangzhou Electric power 100% Establish

Qujie Wind

Power

Zhanjiang Zhanjiang Electric power 100% Establish

Yangjiang Wind

Power

Yangjiang Yangjiang Electric power 100% Establish

Lincang Energy Lincang Lincang Electric power 100%

Business

combinations

involving

enterprises not

under common

control

Guangqian

Electric Power

Shenzhen Shenzhen Electric power 100%

Business

combination

under common

control

Huizhou Natural

gas

Huizhou Huizhou Electric power 67%

Business

combination

under common

control

Pinghai Power

Plant

Huizhou Huizhou Electric power 45%

Business

combination

under common

control

Shibeishan Wind

Power

Jieyang Jieyang Electric power 70%

Business

combination

under common

control

Red Bay Power Shanwei Shanwei Electric power 65%

Business

combination

under common

control

Guangdong Wind

Power

Guangzhou Guangzhou Electric power 100%

Business

combinations

involving

enterprises not

under common

control

Tongdao

Company

Huaihua Hunan Huihua Electric power 100% Establish

Pingyuan Wind

power

Meizhou Meizhou Electric power 100% Establish

Heping Wind

power

Heyuan Heyuan Electric power 100% Establish

Huilai Wind

Power

Jieyang Jieyang Electric power 89.83%

Business

combinations

involving

enterprises not

under common

control

Hongrui

Technology

Shaoguan Shaoguan Electric power 90% Establish

Yongan Natural

gas

Zhaoqing Zhaoqing Electric power 90% Establish

Xupu Yuefeng Huaihua Hunan

Xupu Huaihai

Hunan

Electric power 100% Establish

Wuxuan Yuefeng Guangxi

Wuxuan

Guangxi

Electric power 100% Establish

Pingdian

Comprehensive

Huizhou Huizhou Electric power 45% Establish

Guangdong

Yudean

Zhencheng

Energy Co. Ltd.

Maoming Maoming Electric power 37.23% Establish

Zhuhai Wind

Power

Zhuhai Zhuhai Electric power 100% Establish

Binhai New

Energy

Dongguan Dongguan Electric power 100% Establish

Daya Bay

Company

Huizhou Huizhou Electric power 80% Establish

Qiming Company Shenzhen Shenzhen Electric power 100% Establish

Explanation on share-holding ratio in subsidiary different from ratio of voting right：

Pinghai power was bought by the Company in 2012 by offered non-public shares from Yudean. According to the

agreement between Yudean and Huaxia Electric which holds 40% share interest in Pinghai Power the delegated

shareholder and director from Huaxia Electric maintain consensus with those of Yudean when exercising their

voting rights during shareholder and board meeting; while after Yudean transferred its 45% shareholding of

Pinghai Power to the Company the delegated shareholder and director from Huaxia Electric also maintain

consensus with those of the Company when exercising their voting rights during shareholder and board meeting.On account of the above facts with the control power of Pinghai Power Huaxia Electric enjoys variable returns

through involving in its relevant activities and has the ability to make use of its power to influence the amount of

returns. Therefore the Company owns the control power over Pinghai Power.

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

Explanation that the shareholding ratio in subsidiaries is different from the voting right ratio:

Basis for holding half or less voting rights but still controlling the investee and holding more than half voting

rights but not controlling the investee:

For the important structured subjects included in the scope of consolidation the control basis is:

Basis for determining whether the company is an agent or a principal:

Other note：

（2）Significant not wholly-owned subsidiaries

In RMB

Name

Holding proportion of

non-controlling interest

Profit or loss attributable

to non-controlling

interest

Dividend declared to

non-controlling interest

Closing balance of

non-controlling interest

Huizhou Natural gas 33% 110466248 95094144 710968399

Jinghai Power 35% 80748480 130953852 1286234095

Pinghai Power plant 55% 133202759 0 1198228936

Red Bay 35% 53409980 136940331 1165908936

Zhanjiang Power 24% 22682531 30653430 981432158

Other note：

（3）Main financial information of significant not wholly-owned subsidiaries

In RMB

Subsidia

ries

Closing balance Beginning balance

Current

assets

Non-curr

ent

assets

Total

assets

Current

liabilities

Non-curr

ent

Liabilitie

Total

liabilities

Current

assets

Non-curr

ent

assets

Total

assets

Current

liabilities

Non-curr

ent

Liabilitie

Total

liabilities

Huizhou

Natural

gas

689210

436

310382

1369

379303

1805

876608

176

761973

936

163858

2112

765719

152

321227

1661

397799

0813

825563

251

104456

0000

187012

3251

Jinghai

Power

984258

403

717777

1421

816202

9824

237580

9051

211126

6215

448707

5266

944179

710

748592

3562

843010

3272

194411

5146

266758

9649

461170

4795

Pinghai

Power

plant

145025

3942

396436

0340

541461

4282

115764

6751

207836

9464

323601

6215

102561

8654

413913

3331

516475

1985

103866

9288

218967

1466

322834

0754

Red Bay

798085

413

514498

2623

594306

8036

152238

7509

108951

2139

261189

9648

790682

866

533654

2066

612722

4932

138811

9251

116927

9149

255739

8400

Zhanjian

g Power

306399

7922

130695

7015

437095

4937

274610

508

704377

281654

280

293334

5468

136093

9980

429428

5448

149489

138

222835

171772

712

In RMB

Subsidiaries

Current term Last term

Operating

revenue

Net profit

Total

comprehensi

ve income

Cash flow

from

operating

activities

Operating

revenue

Net profit

Total

comprehensi

ve income

Cash flow

from

operating

activities

Huizhou

Natural gas

187032611

334746205 334746205 412544115

180349805

99075750 99075750 241821580

Jinghai

Power

209520010

230709943 230709943 661661302

200109452

123407270 123407270 896075553

Pinghai

Power plant

144300985

242186835 242186835 326530144

149369002

208701960 208701960 534843205

Red Bay

163067491

152599944 152599944 639189177

180635234

177421053 177421053 318628249

Zhanjiang

Power

770671060 94510548 94510548 209297596 838699914 145678540 145678540 200115171

Other note：

(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt

Other note：

2. Equity in joint venture arrangement or associated enterprise

(1) Significant joint venture arrangement or associated enterprise

Name of

Subsidiary

Main Places of

Operation

Registration

Place

Nature of

Business

Shareholding Ratio (%) Obtaining

Method direct indirect

Joint ventures：

Industry Fuel Guangzhou Guangzhou Fuel trade 50% Equity method

Associates ：

Energy Finance Guangzhou Guangzhou Finance 25% Equity method

Shanxi Yudean

Enerty

Taiyuan Taiyuan Coal investment 40% Equity method

Taishan Power

Generation

Taishan Taishan Electric 20% Equity method

Notes to holding proportion of joint venture or associated enterprise different from voting proportion:

Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting

rights but does not have a significant impact:

（2）Main financial information of Significant joint venture

In RMB

Amount of current period Amount of previous period

Industry Fuel Industry Fuel

Current assets 2666950233 2525548290

Including ：Cash and cash equivalent 693377828 1002513579

Non-current assets 221200621 236455032

Total of assets 2888150854 2762003322

Current liabilities 1739412979 1523551251

Non current liabilities 795463 795464

Total liabilities 1740208442 1524346715

Minority shareholder Equity 5745726 5990551

Attributable to shareholders of the parent

company

1142196686 1231666056

Share of net assets calculated by stake 571098343 615833028

--Other -614728 -614728

Book value of equity investment in joint

venture

570483615 615218300

Business income 6784253886 8564566924

Financial expenses -6754294 -2556396

Income tax 22088703 26149965

Net profit 57819131 78449896

Total comprehensive income 57819131 78449896

Dividends received from the joint venture

this year

69090435 68053122

Other note

(3) Main financial information of significant associated enterprise

In RMB

Closing balance/This period Opening balance/Last period

Energy Finance Shanxi Energy

Taishan Power

Generation

Energy Finance Shanxi Energy

Taishan Power

Generation

Current assets 7105301185 234936123 1504174284 5476170472 493527957 992068417

Non-current

assets

14550754910 4632934399 10671186691 14966723063 4018816040 11150344536

Total of assets 21656056095 4867870522 12175360975 20442893535 4512343997 12142412953

Current liabilities 17824720389 256173109 2277209160 16528663938 227879801 1324769339

Non-current

liabilities

275616489 167617393 390000000

Total liabilities 17824720389 531789598 2277209160 16528663938 395497194 1714769339

Minority

shareholder

Equity

6340940 1310066 6337937 863919

Attributable to

shareholders of

the parent

company

3831335705 4329739984 9896841750 3914529597 4110508866 10426779695

Share of net

assets calculated

by stake

957833926 1731895994 1979368350 978557399 1644203546 2085355939

--Goodwill 13325000 13325000

Book value of

equity investment

in associates

971083926 1724013038 1979368350 991882399 1644203546 2085355939

Business income 343612965 4992410 2700661824 359366978 3986327 2951909787

Net profit 209453720 269234121 201189473 215194176 282977172 421427601

Total

comprehensive

income

209453720 269234121 201189473 215194176 282977172 421427601

Dividends

received from the

associated

enterprise this

year

73161903 20000000 146136255 64106710 40000000 0

Other note

(4) Summary financial information of insignificant joint venture or associated enterprise

In RMB

Amount of current period Amount of previous period

Joint venture: -- --

The total number of the following -- --

Associated enterprise： -- --

Total investment book value 1115572398 1596755878

The total number of the following -- --

--Net Profit -5153486 -2400408

--Other comprehensive income 0 0

-- The total number of the following -5153486 -2400408

Other note

(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds

to the Company

(6) The excess loss of joint venture or associated enterprise

(7) The unrecognized commitment related to joint venture investment

(8) Contingent liabilities related to joint venture or associated enterprise investment

3. Significant common operation

Not applicable

X. Risks Related to Financial Instruments

XI. The disclosure of the fair value

1. Closing fair value of assets and liabilities calculated by fair value

In RMB

Items

Closing fair value

Fir value measurement

items at level 1

Fir value measurement

items at level 2

Fir value measurement

items at level 3

Total

I. Consistent fair value

measurement

-- -- -- --

（3）Other Equity

instrument investment

400591598 2734301000 3134892598

II Inconsistent fair value

measurement

-- -- -- --

2.Recognized basis for the market price sustaining and non-persistent measured by fair value on first-order

For financial instruments that are not traded in active markets the Group adopts valuation techniques to determine

their fair value.

3. Valuation technique and qualitative and quantitative information on major parameters for the fair value measure

sustaining and non-persistent on second-order

For financial instruments that are not traded in active markets the Group adopts valuation techniques to determine

their fair value. The valuation models used are mainly cash flow discount model and market comparable company

model. The input values of valuation techniques mainly include risk-free interest rate benchmark interest rate

exchange rate credit spread liquidity premium dividend model EBITDA multiplier illiquidity discount and so

on.

4. Valuation technique adopted and nature and amount determination of important parameters for

consistent and inconsistent fair value measurement items at level 3

The Group takes the occurrence date of the event that leads to the transition between different levels as the time to

confirm the transition between different levels. This year there is no transition among the first level the second

level and the third level.

5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and

closing book value of consistent fair value measurement items at level 3

The Group's financial assets and liabilities measured in amortized cost mainly include: accounts receivable other

receivables long-term receivables short-term loans fund payable long-term loans bonds payable and long-term

payables.There is no significant difference between the book value and fair value of the Group's financial assets and

financial liabilities that are not measured at fair value.XII. Related parties and related-party transactions

1. Parent company information of the enterprise

Parent company

name

Registration place Nature Registered capital

Share ratio of parent

company against the

company(%)

Vote right ratio of

parent company

against the

company(%)

Guangdong Energy

Group

Guangzhou

Operation and

management of

power generation

enterprises capital

management of

electricity assets

construction of

power plant and

sales of electricity

23000000000 67.39% 67.39%

Explanation on parent company of the enterprise

On August 8 2001 Guangdong Provincial Government had taken the lead in the implementation of the reform of

electric power system. Guangdong Electric power Group was established by inheriting the electricity generation

business of Guangdong electric Power Group Company and its registered capital is RMB 23 billion with 76%

stake held by Guangdong Provincial People's Government and 24% stake held by China Hua Neng Group

owning more than 13000 staff now and the company is the strongest

On February 18 2019 With the approval of the state-owned assets supervision and administration commission of

the Guangdong provincial people's government and the approval of the Guangdong provincial market supervision

administration the former Guangdong Energy group Co. Ltd. was renamed as Guangdong Energy Group Co. Ltd

Ultimate controller of the Company is Guangdong Provincial People’s Govemment state owned assets supervision

and Administration Commission.Other note：

2.Subsidiary of the Enterprise

See to Notes IX.1.

3.Cooperative enterprise and joint venture

See Notes IX.2.Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or

occurred in pervious period：

Name Relationship

Yudean Fuel Company Joint venture

Yudean Shipping Comany Associate

Energy Group Finance Cmpany Associate

Yudean Insurance Captive Company Associate

Other note

4.Other related party

Other related party Relationship with the Enterprise

Yudean Environmental protection Controlled by Energy Group

Guanghe Electric Power Controlled by Energy Group

Yuelong Power Generation Controlled by Energy Group

Xinhui Power Plant Controlled by Energy Group

Yunhe Power Generation Controlled by Energy Group

Zhongshan Thermal power plant Controlled by Energy Group

Yuehua Power Generation Controlled by Energy Group

Zhuhai Jinwan Controlled by Energy Group

Guangzhu Company Controlled by Energy Group

Yudean Infornation Technology Controlled by Energy Group

Huangpu Power Engineering Controlled by Energy Group

Yudean Property Controlled by Energy Group

Yangjiang Port Controlled by Energy Group

Yudean Changtan Power Generation Controlled by Energy Group

Yudean Real Estate Controlled by Energy Group

Shajiao C Power Plant Controlled by Energy Group

Energy Group Controlled by Energy Group

Huizhou New Energy Controlled by Energy Group

Deqing New Energy Controlled by Energy Group

Shaoguan Port Controlled by Energy Group

Yudean New Energy Controlled by Energy Group

Qujiang New Energy Controlled by Energy Group

Yudean Environmental protection material Controlled by Energy Group

Yudean Financing leasing Controlled by Energy Group

Huizhou Liquidation Natural gas Controlled by Energy Group

Shenzhen Tianxin Controlled by Energy Group

Energy Group Natural gas Controlled by Energy Group

Other note

5. Related transactions.

（1）Related transactions on purchasing goods and receiving services

Acquisition of goods and reception of labor service

In RMB

Related party Content Current amount Approval trading limit

Whether over the

trading limit(Y/N)

Last amount

Fuel Company Fuel purchase 4902865249 No 5927855461

Energy Group

Natural gas

Fuel purchase 742626273 No 1032808240

Yudean

Environment

Protection

Material purchase 68533438 No 83714919

Yudean Property

Management

Acceptance of

management

services

15521486 No 7091341

Yudean Shipping

Acceptance of

tugboat services

13097736 No 0

Huangpu Power

Engineering

Maintenance

services

5364513 No 2703922

Yangjiang Port

Acceptance of

tugboat services

1479405 No 2945775

Yudean Information

Acceptance of

management

services

1057265 No 1041073

Yudean Changtan

Power Generation

Acceptance of

management

services

113208 No

Yuehua Power

Generation

Acceptance of

management

services

37800 No

Guanghe Electric

Power

Electric purchase 78863402 No 44918434

Guangzhu

Company

Electric purchase 65652082 No

Zhuhai Jinwan Electric purchase 60817812 No 51778472

Zhongshan Thermal

power plant

Electric purchase 44099821 No 1706351

Yuehua Power

Generation

Electric purchase 29358941 No 10509583

Yunhe Power

Generation

Electric purchase 28300770 No 24292659

Xinhui Power

Generation

Electric purchase 28026682 No 3230849

Yuelong Power

Generation

Electric purchase 14217210 No 10007613

Sales of goods and services

In RMB

Related parties Content Occurred current term Occurred in previous term

Yudean Environment Protection Sale of Material 110603961 94544225

Shajiao C plant

Providing maintenance

services

19703681 11062339

Yunhe Power Generation

Providing maintenance

services

12313194 6745533

Xinhui Power Generation Service 5782041 2880388

Zhongshan Thermal power

plant

Providing maintenance

services

2445092 0

Qujiang New Energy

Providing maintenance

services

2307500 0

Deqing New Energy Service 557677 0

Yudean New Energy Service 312004 0

Yudean Environment Protection

Providing maintenance

services

188522 0

Huizhou New Energy

Providing maintenance

services

19749 0

Notes

The amount of electricity purchased shall be determined according to the downward price difference of the first

on-grid electricity price and the amount of electricity purchased as agreed by the power sales company and the

related power plants.

（2）Related trusteeship or contracting

Related trusteeship or contracting in which the Company is the undertake

In RMB

Name of the

employer

Name of the

undertaker

Asset situation of

the undertaker

Start date Terminating date Pricing basis

Gains from the

deal in report

period

Guangdong

Energy Group

Co. Ltd.

Guangdong

Electric Power

Development

Co. Ltd.

Shareholders'

rights except

ownership

income right and

disposition right

January 12018

The custody fee

charged to each

first-class target

company directly

controlled by

Guangdong

Energy Group is

100000

yuan/year and

1155660

the custody fee

charged to each

second-class

target company

indirectly

controlled by

Guangdong

Yudean Group is

50000 yuan/year.

If the custody

period is less than

one complete

fiscal year the

calculation

formula of the

custody fee of

each target

company is

calculated

according to the

custody days. The

custody scope

includes 20

first-class target

companies and 9

second-class

target companies

with an estimated

custody fee of

2.45 million

yuan/year.Note

According to the instructions of Guangdong 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

Guangdong Energy Group have signed the Equity Trust Agreement which entrusts the rights of shareholders of

the Company within the trust scope of Guangdong Energy Group to the Company except for the rights of

ownership income and disposition. The expected trust fee is RMB 2.45 million/year.Lists of entrust/contracted

In RMB

Name of the

entrusted/contract

Name of the

entrusted/

contractor

Type Initial date Due date Pricing basis

Charge

recognized in the

reporting period

(3) Information of related lease

The company as lessor:

In RMB

Name of lessee Category of leased assets

The lease income confirmed in

this year

The lease income confirmed in

last year

Shipping Company Property Leasing 528807 0

Shajiao C Power plant Property Leas 42857 0

Shaoguan Port Property Leasing ing 12465 0

The Company was lessee：

In RMB

Lessor Category of leased assets

The lease income confirmed in

this year

Category of leased assets

Yudean Real Estate Leasing service 4909655 3455180

Yudean Finance lease Financing leasing 43685957 33718740

Notes

On January 2020Based on the Framework Agreement on Financial Lease between the Company and Yudean

Leasing Yudean Leasing is committed to offering the Group a credit line of less than RMB 10 billion which is

reusable during the one-year agreement period. As at 30 June 2020 the balance of Bohe Coal’s long-term

payables of finance lease through leaseback was RMB 1008308409 (December 31 2019: 1007806525 ) and its

interest expenses recorded in construction in progress was RMB 26244439 (December 31 2019: 55545322);

the balance of Qujie Wind Power’s long-term payables of finance lease was RMB 595131079 (December 31

2019: 496646931) and the interest expenses recorded in construction in progress amounted to RMB12466892

((December 31 2019: 18018300 ）.

On June 30 2020 the long-term payable balance of Zhuhai Wind Power Company formed by financial leasing

was RMB 103184586 (December 31 2019: RMB 77156198) and the interest expense included in the

construction in progress this year Is RMB 2260681 (December 31 2019: RMB 444117) On June 30 2020 the

long-term payable balance of Yangjiang Wind Power Company formed by financial leasing was RMB

156494075 (December 31 2019: RMB 85417014) and the interest expense included in the construction in

progress this year was RMB 2713945 (December 31 2019: RMB 1080388)

（4）Status of related party guarantee

As a guarantor for the company

In RMB

Guarantor Guarantee amount Start date End date

Execution accomplished

or not

As a secured party for the company

In RMB

Guarantor Guarantee amount Start date End date

Execution accomplished

or not

Energy Group 1500000000 August 142013 August 132022 No

(5) Inter-bank lending of capital of related parties：

In RMB

Related party

Amount borrowed and

loaned

Initial date Due date Notes

Borrowed

Guangdong Energy

Group Finance Co. Ltd.

240000000 December 62007 December 52025

Guangdong Energy 100000000 August 222012 August 222022 ··

Group Finance Co. Ltd.Guangdong Energy

Group Finance Co. Ltd.

291807937 December 252013 December 242028

Guangdong Energy

Group Finance Co. Ltd.

375900000 March 112013 March 102031

Guangdong Energy

Group Finance Co. Ltd.

90000000 October 162014 October 132029

Guangdong Energy

Group Finance Co. Ltd.

60780000 December 102014 October 272029

Guangdong Energy

Group Finance Co. Ltd.

1710000 December 102014 October 272029

Guangdong Energy

Group Finance Co. Ltd.

1780000 December 102014 October 272029

Guangdong Energy

Group Finance Co. Ltd.

69740000 December 102014 October 272029

Guangdong Energy

Group Finance Co. Ltd.

1780000 December 102014 October 272029

Guangdong Energy

Group Finance Co. Ltd.

1710000 December 102014 October 272029

Guangdong Energy

Group Finance Co. Ltd.

62560000 December 102014 October 272029

Guangdong Energy

Group Finance Co. Ltd.

19000000 October 132015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

19000000 October 132015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

144500000 December 162015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

144500000 December 162015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

49500000 Fubruary 112015 February 102033

Guangdong Energy

Group Finance Co. Ltd.

100000000 February 42015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

100000000 February 42015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

45000000 June 172015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

45000000 June 172015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

25000000 July 232015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

25000000 July 232015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

24000000 Septembner 152015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

24000000 September 152015 October 272029

Guangdong Energy 30000000 September 282015 October 272029

Group Finance Co. Ltd.Guangdong Energy

Group Finance Co. Ltd.

30000000 September 282015 October 272029

Guangdong Energy

Group Finance Co. Ltd.

160000000 November 302016 November 282031

Guangdong Energy

Group Finance Co. Ltd.

77200000 December 82016 August 152031

Guangdong Energy

Group Finance Co. Ltd.

100000000 December 152017 December 142020

Guangdong Energy

Group Finance Co. Ltd.

89300000 June 232017 June 222032

Guangdong Energy

Group Finance Co. Ltd.

5305000 July 282017 June 222032

Guangdong Energy

Group Finance Co. Ltd.

12145000 August 242017 June 222032

Guangdong Energy

Group Finance Co. Ltd.

37855000 September 222017 June 222032

Guangdong Energy

Group Finance Co. Ltd.

256990000 September 222017 June 222032

Guangdong Energy

Group Finance Co. Ltd.

12000000 June 202018 October 272029

Guangdong Energy

Group Finance Co. Ltd.

12000000 June 202018 October 272029

Guangdong Energy

Group Finance Co. Ltd.

26000000 July 312018 July 222033

Guangdong Energy

Group Finance Co. Ltd.

17000000 September 202018 October 272029

Guangdong Energy

Group Finance Co. Ltd.

17000000 September 202018 October 272029

Guangdong Energy

Group Finance Co. Ltd.

80000000 October 182019 October 172020

Guangdong Energy

Group Finance Co. Ltd.

100000000 October 282019 October 222020

Guangdong Energy

Group Finance Co. Ltd.

200000000 November 142019 November 132020

Guangdong Energy

Group Finance Co. Ltd.

30000000 November 242019 November 232020

Guangdong Energy

Group Finance Co. Ltd.

20000000 December 172019 December 162020

Guangdong Energy

Group Finance Co. Ltd.

20000000 December 182019 December 172020

Guangdong Energy

Group Finance Co. Ltd.

200000000 December 202019 December 192020

Guangdong Energy

Group Finance Co. Ltd.

50000000 December 242019 December 232020

Guangdong Energy

Group Finance Co. Ltd

23000000 December 272019 December 262034

Guangdong Energy 140000000 December 92019 December 82020

Group Finance Co. Ltd.Guangdong Energy

Group Finance Co. Ltd.

550000000 April 242019 May 12021

Guangdong Energy

Group Finance Co. Ltd.

127984742 June 262019 June 252039

Guangdong Energy

Group Finance Co. Ltd.

100000000 July 152019 July 142020

Guangdong Energy

Group Finance Co. Ltd.

70000000 July 222019 July 212020

Guangdong Energy

Group Finance Co. Ltd.

100000000 July 242019 July 232020

Guangdong Energy

Group Finance Co. Ltd.

45000000 July 252019 July 242020

Guangdong Energy

Group Finance Co. Ltd.

40000000 July 302019 July 292020

Guangdong Energy

Group Finance Co. Ltd.

70000000 July 312019 July 302020

Guangdong Energy

Group Finance Co. Ltd.

30000000 August 122019 August 112020

Guangdong Energy

Group Finance Co. Ltd.

20000000 August 262019 August 252020

Guangdong Energy

Group Finance Co. Ltd.

200000000 August 292019 August 282020

Guangdong Energy

Group Finance Co. Ltd.

20000000 August 92019 August 72020

Guangdong Energy

Group Finance Co. Ltd.

20000000 September 112019 September 102020

Guangdong Energy

Group Finance Co. Ltd.

10000000 September 182019 September 172020

Guangdong Energy

Group Finance Co. Ltd.

416662561 September 22019 May 262030

Guangdong Energy

Group Finance Co. Ltd.

5000000 September 202019 September 182020

Guangdong Energy

Group Finance Co. Ltd.

100000000 September 242019 September 232020

Guangdong Energy

Group Finance Co. Ltd.

50000000 September 292019 September 222020

Guangdong Energy

Group Finance Co. Ltd.

223000000 September 302019 December 272036

Guangdong Energy

Group Finance Co. Ltd.

40000000 September 92019 September 82020

Guangdong Energy

Group Finance Co. Ltd.

130000000 January 132020 January 122021

Guangdong Energy

Group Finance Co. Ltd.

20000000 January 152020 January 142021

Guangdong Energy

Group Finance Co. Ltd.

6000000 January 162020 January 152021

Guangdong Energy 120000000 January 72020 January 62021

Group Finance Co. Ltd.Guangdong Energy

Group Finance Co. Ltd.

57386446 January 72020 May 262030

Guangdong Energy

Group Finance Co. Ltd.

154890555 February 262020 January 22040

Guangdong Energy

Group Finance Co. Ltd.

100000000 February 262020 February 252021

Guangdong Energy

Group Finance Co. Ltd.

13000000 March 122020 January 152021

Guangdong Energy

Group Finance Co. Ltd.

30000000 March 162020 March 152021

Guangdong Energy

Group Finance Co. Ltd.

230000000 March 232020 March 222021

Guangdong Energy

Group Finance Co. Ltd.

50000000 March 232020 March 222021

Guangdong Energy

Group Finance Co. Ltd.

30000000 March 232020 March 222021

Guangdong Energy

Group Finance Co. Ltd.

32992546 March 232020 March 232021

Guangdong Energy

Group Finance Co. Ltd.

30000000 March 242020 January 152021

Guangdong Energy

Group Finance Co. Ltd.

40000000 March 302020 March 252021

Guangdong Energy

Group Finance Co. Ltd.

60000000 March 92020 March 82021

Guangdong Energy

Group Finance Co. Ltd.

100000000 April 102020 April 132021

Guangdong Energy

Group Finance Co. Ltd.

30000000 April 142020 April 132021

Guangdong Energy

Group Finance Co. Ltd.

150000000 April 172020 April 162021

Guangdong Energy

Group Finance Co. Ltd.

50000000 April 202020 April 192021

Guangdong Energy

Group Finance Co. Ltd.

100000000 April 272020 April 262021

Guangdong Energy

Group Finance Co. Ltd.

100000000 April 292020 April 262021

Guangdong Energy

Group Finance Co. Ltd.

100000000 April 32020 April 22023

Guangdong Energy

Group Finance Co. Ltd.

80000000 April 72020 April 62021

Guangdong Energy

Group Finance Co. Ltd.

10000000 May 112020 May 102021

Guangdong Energy

Group Finance Co. Ltd.

150000000 May 192020 May 182021

Guangdong Energy

Group Finance Co. Ltd.

96000000 May 192020 January 152021

Guangdong Energy 10000000 May 202020 May 192021

Group Finance Co. Ltd.Guangdong Energy

Group Finance Co. Ltd.

13700000 May 212020 May 182035

Guangdong Energy

Group Finance Co. Ltd.

15000000 May 252020 May 242021

Guangdong Energy

Group Finance Co. Ltd.

100000000 May 252020 May 242021

Guangdong Energy

Group Finance Co. Ltd.

150000000 May 252020 May 242021

Guangdong Energy

Group Finance Co. Ltd.

10000000 May 252020 May 242021

Guangdong Energy

Group Finance Co. Ltd.

51000000 May 262020 January 152021

Guangdong Energy

Group Finance Co. Ltd.

104000000 May 262020 May 182021

Guangdong Energy

Group Finance Co. Ltd.

9550000 May 282020 May 282035

Guangdong Energy

Group Finance Co. Ltd.

100000000 May 292020 May 282021

Guangdong Energy

Group Finance Co. Ltd.

30000000 May 292020 May 282021

Guangdong Energy

Group Finance Co. Ltd.

10000000 May 72020 May 62021

Guangdong Energy

Group Finance Co. Ltd.

100000000 June 102020 June 92021

Guangdong Energy

Group Finance Co. Ltd.

10000000 June 102020 June 92021

Guangdong Energy

Group Finance Co. Ltd.

160000000 June 112020 June 102021

Guangdong Energy

Group Finance Co. Ltd.

40000000 June 112020 June 102021

Guangdong Energy

Group Finance Co. Ltd.

200000000 June 112020 June 102021

Guangdong Energy

Group Finance Co. Ltd.

90000000 June 122020 June 112021

Guangdong Energy

Group Finance Co. Ltd.

100000000 June 122020 June 112021

Guangdong Energy

Group Finance Co. Ltd.

3000000 June 122020 May 182035

Guangdong Energy

Group Finance Co. Ltd.

140000000 June 152020 June 142021

Guangdong Energy

Group Finance Co. Ltd.

45000000 June 152020 June 142021

Guangdong Energy

Group Finance Co. Ltd.

70000000 June 162020 June 152021

Guangdong Energy

Group Finance Co. Ltd.

10000000 June 162020 June 152021

Guangdong Energy 180000000 June 182020 June 172021

Group Finance Co. Ltd.Guangdong Energy

Group Finance Co. Ltd.

40000000 June 182020 June 172021

Guangdong Energy

Group Finance Co. Ltd.

15000000 June 182020 June 172021

Guangdong Energy

Group Finance Co. Ltd.

60000000 June 122020 June 12021

Guangdong Energy

Group Finance Co. Ltd.

20000000 June 232020 June 222021

Guangdong Energy

Group Finance Co. Ltd.

50000000 June 242020 June 232021

Guangdong Energy

Group Finance Co. Ltd.

1500000 June 302020 May 182035

Guangdong Energy

Group Finance Co. Ltd.

5000000 June 42020 June 32021

Guangdong Energy

Group Finance Co. Ltd.

85000000 June 92020 June 82021

Loaned

(6) Related party asset transfer and debt restructuring

Not applicable

(7) Rewards for the key management personnel

In RMB

Items

Amount of current period Amount of previous period

Annual salary of the operator 3053040 3321082

（8）Other related transactions

(a)Allocation of common expenses

In the first half of 2020 the common expenses received by the Group from Shajiao C was RMB1711963.( In the

first half of 2019 the common expenses received by the Group from Shajiao C was RMB260423 )

(b) Interest income

In RMB

Items Amount of current period Amount of previous period

Deposit interest of Energy

Group Finance

32889591 23802960

Proportion % 91.77% 73.99%

(c)Interest expense

Items Amount of current period Amount of previous period

Loan interest paid to Energy

Group Finance

135226054 118174115

Discount interest on Energy

Group Finance

12277995 14987476

Proportion % 24.82% 20.04%

（d）Interest payable

Items

Amount of current period Amount of previous period

Yudean Finance Lease interest 43685957 33718740

(e)Joint Investment

Name Energy Group

Zhenneng Company 30.12%

Bohe Company 33%

Energy Group Finance Company 65%

Industry Fuel 50%

Shanxi Energy Company 60%

Capital Company 51%

West Investment 35%

Yudean Shipping 65%

6. Payables and receivables of the related party

（1）Receivables

In RMB

Project Related parties

At end of term At beginning of term

Book balance Bad debt provision Book balance Bad debt provision

Moentary funds

Energy Group

Finance Company

4469328465 4468014839

Account receivable

Xinhui Power

Generation

4420372 1706822

Yunhe Power

Generation

3000766 3123537

Shajiao C plant 2770356 901427

Qujiang New Energy 1336462 1699980

Zhongshan Thermal

Power

263160 846660

Yudean

Environmental

protection

39967 0

Shaoguan Port 8392 0

Yudean New Energy 0 941609

Huizhou New

Energy

0 577717

Other account

receivable

Yudean

Environmental

protection

74363831 69568758

Yudean Real Estate 1715273 1536942

The Group 1191184 2311321

Yunhe Power

Generation

1026270

Capital Company 963630

Shajiao C plant 941563

Yudean Property 520708 466572

Zhongshan Thermal

Power

21617

Shaoguan Port 13455

Energy Group

Finance Company

25335356 20866069

Yudean Shipping

Comapny

576400

Liquefaction natural

gas

329096

Advance payment Industry Fuel 518984394 455412330

Capital Company 2233887

Energy Group

Finance Company

673873

Shenzhen Tianxin 9717

Other non current

assets

Yudean Infornation

Technology

700000 700000

（2）Payables

In RMB

Name Related party Amount at year end Amount at year beginning

Note Payable

Energy Group Finance

Company

962992546 870000000

Account Payable Industry fuel 1933188661 1638254539

Energy Group natural gas 63049407 222256982

Yudean Environmental

Protection

39772779 28147157

Huangpu Electric Engineering 5208774

Yudean Shipping Company 2300000 2300000

Yudean Property 2160322 8044985

Yudean Infornation Technology 119860 92000

Other account payable Yudean Property 3512266 1568761

Yudean Environmental 501188 766080

Protection

Yudean Infornation Technology 355500 959440

Yudean Real Estate 290864

Yudean Shipping Company 260000

Yudean Changtan Power

Generatiion

120000

Huangpu Electric Engineering 104359 8327106

Industry fuel 97211

Shenzhen Tianxin 70000

Qujiang New Energy 9000 9000

Short-term loan

Energy Group Finance

Company

4208952146 4119893053

-Principal 4200200000 4115000000

-Interest 8752146 4893053

Non-current liability due in 1

year

Energy Group Finance

Company

241127304 254025779

-Principal 235551032 249872476

-Interest 5576272 4153303

Long-term loan

Energy Group Finance

Company

3116476458 2765740493

Long-term payable Yudean Finance 1863118149 1667026669

Energy Group 0 12217551

7. Related party commitment

8.Other

XIII. Commitments

1.Importance commitment events

Important commitments of existence of balance sheet date

(1) Commitments of capital expenditure

The following are the capital expenditure commitments signed by the Group on the balance sheet date which do

not need to be listed on the balance sheet:

June 302020 December 312019

House Building and Generation

equipment

16114606795 13726826554

Intangible assets 5309654 8244396

16119916449 13735070950

(2) Operating lease commitments

According to the signed irrevocable operating lease contract the minimum rent payable by the Group in the future

is summarized as follows:

June 302020 December 312019

Within 1 year 17070740 24818237

1-2 years 5341790 5159843

2-3 years 2717202 1681275

Over 3 years 8067689 6578799

33197422 38238154

(3) Performance of previous commitments

（a）The Second Meeting of the Ninth board of Directors examined and adopted the Proposal on Establishing

the Huizhou Daya Bay Petrochemical District Western Comprehensive Energy Station Project Company and

Carrying out the Upfront Work In order to promote the implementation and speed up the progress of the Western

Comprehensive Energy Station Project of Huizhou Daya Bay Petrochemical District the board of directors agrees:

The Company and Huizhou Daya Bay Petrochemical Industrial Zone Investment Co. Ltd establish the Huizhou

Daya Bay Petrochemical District Western Comprehensive Energy Station Project Company in Daya Bay District

by the share structure ratio of 80%:20% with the initial registered capital of RMB 22 million-of which the

Company contributes RMB17.6 million according to the share ratio. After the establishment of the project

company the project company will be responsible for the upfront work of the western comprehensive energy

station project in the Daya Bay Petrochemical District of Huizhou (the project construction scale is temporarily

based on 3 H-class (660-800MW) gas units and 2 150t / h gas boilers with the final construction scale will be

researched in the feasibility study stage and then be determined after approval) and the upfront work costs will be

controlled at RMB12 million .On June 30 2020 the Company has injected RMB 17.6 million into Daya Bay Company.（b） On November 28 2019 the voting results of the 6th Communication Meeting of the 9th Board of Directors

of the Company in 2019 reviewed and approved the Proposal on Establishing Shenzhen Guangming Plant

Alternative Power Supply Project Company and Carrying out Pre-project Work. In order to ensure the

implementation and rapid promotion of replacement capacity after Shajiao Power Plant is shut down and

decommissioned the Board of Directors agreed that the Company set up Guangming Project Company

wholly-owned registered in Guangming District Shenzhen with the initial registered capital of RMB 20000000.

According to the scale of 2 H-class (660-800MW) gas units the project company carried out the preliminary

approval work of Guangming project. On June 30 2020 the Company has injected RMB 20000000 into Qiming

Company.

（c）On Apri8l 102020The Third Meeting of the Ninth board of Directors examined and adopted the

Proposal on Investment in Construction of Alternative Power Supply Project at Ningzhou Site in Dongguan

In order to optimize the power supply structure and increase the proportion of clean energy the Board of

Directors agreed that Guangdong Yudean Binhaiwan Energy Co. Ltd. (hereinafter referred to as "Binhaiwan

Company") a wholly-owned subsidiary company would be the main investor to invest in the construction of a

alternative power supply project at Ningzhou Site in Dongguan with an installed capacity of 3×700MW

gas-steam combined cycle cogeneration unit. The total dynamic investment of the project is 5.928 billion yuan of

which the capital is about 1.186 billion yuan accounting for 20% of the total dynamic investment. After the 270

million yuan which was already invested in the previous period is deducted the remaining capital of 916 million

yuan will be settled by the company through batch capital increase to Binhaiwan Company according to the

project construction progress and capital demand.On June 302020 the Company has injeted RMB 270000000

into Binhaiwan Company.（d）On Apri8l 102020The Third Meeting of the Ninth board of Directors examined and adopted the Proposal on

Investment in the Construction of the Dagaoshan Wind Farm Project along the Hunan Corridor， In order to speedup the large-scale development of the company's new energy power generation projects increase the proportion of

clean energy installed and optimize the power supply structure the Board of Directors agreed to invest in the

construction of the Dagaoshan Wind Power Project in Tongdao Dong Autonomous County of Hunan Province

with an installed capacity of 50MW by Tongdao Yuexin Wind Power Co. Ltd (hereinafter referred to as "Tongdao

Wind Power Company") a wholly-owned subsidiary of the company as the main investor. The total dynamic

investment of the project is531740000 yuan of which the capital is 106.5 million yuan accounting for 20% of

the total dynamic investment of the project. In view of the actual construction progress and capital needs the

capital required for the Project shall be solved by the Company by increasing capital in batches to Tongdao Wind

Power Company. The Company still requires to increase its capital by 96.5 million yuan after deducting 10

million yuan that has been reviewed and approved in the previous period. On June 30 2020 the Company has

injected RMB 60000000 into Tongdao Company of which RMB 50000000 was as supplementary capital for

this year.（e）The Third Meeting of the Ninth board of Directors examined and adopted the Proposal on Investment in

the Construction of Taiyangshan Wind Farm Project in Xupu of Hunan， In order to further promote thelarge-scale development of the company's wind power the Board of Directors agrees that Guangdong Wind Power

Generation Co. Ltd. a wholly-owned subsidiary of the company (hereinafter referred to as "the Provincial Wind

Power Company") will invest in the construction and operation of Hunan Xupu Taiyangshan Wind Farm Project

(hereinafter referred to as "Xupu Wind Power Project") with an installed capacity of 50MW. The total dynamic

investment of the project is 524.5329 million yuan (including the investment of self-built transmission line

project) of which the capital is 104.9066 million yuan accounting for 20% of the total dynamic investment of the

project. According to the actual construction progress and capital demand of the project the Provincial Wind

Power Company applies to the company for capital increase based on its own capital situation.Hunan Xupu Yuefeng New Energy Co. Ltd. a wholly-owned subsidiary of the provincial wind power company

is the main body of the project investment and is responsible for the investment construction and operation of the

project. On June 30 2020 the Company injected a total capital of RMB 50000000 into the project of which

RMB 50000000 was as supplementary capital for this year.

（f）On January 25 2019The Seventh Meeting of the Ninth board of Directors examined and adopted the

Proposal the Investment and Construction of Zhuhai Jinwan Offshore Wind Power Project，In order to furtherpromote the Company's large-scale development of offshore wind power in Guangdong Province and in the

southeast coast the Board of directors agreed to invest in Zhuhai Jinwan offshore wind farm project (300000 kw)

with a total dynamic investment of RMB 5643.17 million-of which the capital is RMB 1128.634

million-accounting for 20% According to the progress of project construction and capital needs the Company

increased capital to provincial wind power and then increased capital to Zhuhai wind power. On June 30 2020

the Company injected a total capital of RMB 365000000 into the project of which RMB 100000000 was as

supplementary capital for this year.(g) On March 23 2018 the first communication meeting of the ninth Board of Directors of the Company in 2018

reviewed and approved the Proposal on Launching the Preliminary Work of Zhanjiang Wailuo Offshore Wind

Power Project (Phase II) and the ninth meeting of the ninth Board of Directors on August 29 2019 reviewed and

approved the Proposal on Investing in Zhanjiang Wailuo Offshore Wind Power Project Phase II. In order to speed

up the large-scale development of new energy power generation projects to increase the proportion of clean

energy installed capacity and optimize the power supply structure the Board of Directors agreed that Qujie Wind

Power a wholly-owned subsidiary of the Company should be the main investor for investment in the construction

of Wailuo Phase II. The total dynamic investment of the project is RMB 3789120000 of which the capital is

RMB 757824000 accounting for 20% of the total dynamic investment. In view of the actual construction

progress and capital needs of the Project the capital required for the Project shall be solved by the Company by

increasing capital in batches to Qujie Wind Power. On June 30 2020 the Company injected a total capital of

RMB 208000000 into the project of which RMB 80000000 was as supplementary capital for this year.

（h）On November 282019 The Sixth Meeting of the Ninth board of Directors examined and adopted the

Proposal on Starting Investment and Construction of Zhanjiang Xinliao Offshore Wind Power Project， In orderto optimize the company's energy structure improve the proportion of clean energy the Board of Directors agrees

that Qujie Wind Power Company a wholly-owned subsidiary of the Company should be the main investor to

invest in the construction of Zhanjiang Xinliao Offshore Wind Power Project . with the installed capacity of

203.5MW. The total dynamic investment of the Project is 3698.88 million yuan of which the capital of the

Project is 739.776 million yuan accounting for 20% of the dynamic investment of the project. In view of the

actual construction progress and capital needs of the Project the capital required for the Project shall be solved by

the Company by increasing capital in batches to Qujie Wind Power Company. On June 30 2020 the Company

injected a total capital of RMB 120000000 into the project of which RMB 80000000 was as supplementary

capital for this year.

2.Contingency

（1）Significant contingency at balance sheet date

（a）As at 30 June 2020 the Company provided joint guarantee for bank borrowings amounting to RMB

73370000 for Yunnan Baoshan Binlangjiang Hydroelectricity Development Co. Ltd. of which the liability

relief procedure is being handled.（b）Pinghai Power failed to complete settlement with two of its engineering contractors due to the dispute of

settlement regarding construction and installation project contracts

①On 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 April 1

2019 it received a summons from the local intermediate people's court attended the pre-trial preparation meeting

of the first instance on May 14 and July 18 2019 and decided to hire a third party to carry out cost appraisal on

disputes. On April 13 2020 the court confirmed the cost appraisal institution by rolling ball and requested

Pinghai Power Plant to submit appraisal materials in May. Pinghai Power Plant has submitted relevant appraisal

materials and cross-examination opinions according to the notice of the court.②On July 2 2019 another engineering contractor sued Pinghai Power Plant in the local intermediate people's

court demanding that Pinghai Power Plant pay RMB 89548053 for the extra project cost arising from the

modification of the contract scope and RMB 36526452 for the interest arising from the delayed payment. On

August 14 2019 both parties attended the first-instance trial and Pinghai Power Plant's application for

jurisdiction objection was rejected. On November 8 2019 a counterclaim was submitted to the local intermediate

people's court and the counterclaim contractor was held liable for breach of contract due to delayed completion.On January 17 2020 both parties attended the first-instance trial again and exchanged evidence in the court. In

April 2020 the court asked Pinghai Power Plant to submit appraisal materials and on July 10 2020 the cost

appraisal institution was determined by rolling ball. At present Pinghai Power Plant has submitted relevant

appraisal materials and cross-examination opinions according to the court notice.

As of the date of issuance of this report due to the fact that the above litigation cases have not yet been heard and

the Group's management is unable to predict the outcome of the litigation after consulting legal counsel the

project funds and interest related to the above litigation have not been accrued in the 2020 semi-annual financial

statements.

（2）The Company have no significant contingency to disclose also should be stated

The was no significant contingency in the Company.

3.Other

XIV. Post-balance-sheet events

1. Significant events had not adjusted

In RMB

Items Content Influence Reason

2. Profit distribution

In RMB

Profits or dividends declared upon examination and approval 0

3. Note to other matters after the balance sheet date

XV. Other significant events

6. Segment information

(1) Recognition basis and accounting policies of reportable segment

As the Group's operating income expenses assets and liabilities are mainly related to the production and sale of

electricity and related products the management of the Group takes the electricity business as a whole and

regularly obtains and evaluates its financial status operating results and cash flow and other relevant accounting

information. Therefore the Group has only the power business segment so it has not prepared the report segment

information.The Group's main business income comes from the development and operation of power plants in China and all

its assets are in China.

From January to June 2020 the income of the Group's power plants from China Southern Power Grid

Corporation was RMB 12227202300 (January to June 2019: RMB 12631577798) accounting for 97.52% of

the Group's operating income (January to June 2019: 98.12%)

(2) There was no reportable segment or the total amount of assets and liabilities of each part of reportable

segment shall disclose the reason.

As the Group's operating income expenses assets and liabilities are mainly related to the production and sale of

electricity and related products the management of the Group takes the electricity business as a whole and

regularly obtains and evaluates its financial status operating results and cash flow and other relevant accounting

information. Therefore the Group has only the power business segment so it has not prepared the report segment

information.

2. Other important transactions and events have an impact on investors’ decision-making

3.Other

XVI. Notes s of main items in financial reports of parent company

（1）Account receivable

1.Classification account receivables.

In RMB

Category

Closing balance Opening balance

Book balance Bad debt provision

Book

value

Book balance Bad debt provision

Book value

Amount

Proportio

n %

Amount

Proportio

n %

Amount

Proportio

n %

Amount

Proportio

n %

Of which：

Accrual of bad debt

provision by

portfolio

128688

475

1286884

2092700

20911

20924910

Of which：

Electricity sales

receivable

128688

475

100% 0 0%

1286884

2071788

99% 0 0%

20717886

Other 0 0 2091149 1% 20911 1% 2070238

Total

128688

475

100% 0 0%

1286884

2092700

100% 20911 0.01%

20924910

Accrual of bad debt provision by single item:

In RMB

Name

Closing balance

Book balance Bad debt provision Proportion% Reason

Accrual of bad debt provision by portfolio:

In RMB

Name

Closing balance

Book balance Bad debt provision Proportion%

Electricity sales receivable 128688475 0 0%

Total 128688475 0 --

Note：

Portfolio 1- Electricity sales receivable， As at 30 June 2020 the amount of receivables from sales of electricity ofthe Group was RMB128688475 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%.

Accrual of bad debt provision by portfolio:

In RMB

Name

Closing balance

Book balance Bad debt provision Proportion

Other account receivable 0 0 0%

Total 0 0 --

Accrual of bad debt provision by portfolio:

I n RMB

Name

Closing balance

Book balance Bad debt provision Proportion

Note：

Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of

other receivables if the provision for bad debts of bills receivable is accrued according to the general model of

expected credit loss:

√ Applicable □Not applicable

For accounts receivable regardless of whether there is any significant financing component the Company

measures the loss reserve according to the expected credit loss throughout the duration.Portfolio 1-

On June 30 2020 the amount of electricity sales receivable from the Company was RMB 128688475 which

was mainly the fund receivable from China Southern Power Grid Corporation. Considering its high credit level

the Company considered that there was no significant credit risk in the electricity sales receivable and the

possibility of heavy losses caused by the default of China Southern Power Grid Corporation was extremely low.The expected credit loss of the Company to the electricity sales receivable was 0%.Portfolio 2-

On June 30 2020 the Company did not have any accounts receivable in portfolio 2.Portfolio32-

On June 30 2020 the Company did not have any accounts receivable in portfolio 3.

Disclosure by aging

In RMB

Aging

Closing balance

Within 1 year（Including 1 year） 128688475

Total 128688475

(2) Accounts receivable withdraw reversed or collected during the reporting period

The withdrawal amount of the bad debt provision：

In RMB

Category Opening balance

Amount of change in the current period

Closing balance

Accrual

Reversed or

collected amount

Write-off Other

Other account

receivable

20911 20911 0

Total 20911 20911 0

Of which the significant amount of the reversed or collected part during the reporting period

In RMB

Name Reversed or collected amount Method

Dongguan Dejin Energy Technology Co. Ltd. 20911 Cash

Total 20911 --

（3） Top 5 of the closing balance of the accounts receivable collected according to the arrears party

In RMB

Debtor Book amount Provision for bad debts Proportion%

GPGC 128688475 100% 0

Total 128688475 100%

2. Other accounts receivable

In RMB

Items Closing balance Opening balance

Interest receivable 1028214 689092

Dividend receivable 2652502

Other accounts receivable 94324237 104807684

Total 95352451 108149278

（1）Interest receivable

1) Category of interest receivable

In RMB

Items Closing balance Opening balance

Fixed deposit 205901 108112

Entrust loans 822313 580980

Total 1028214 689092

2）Bad-debt provision

□ Applicable √ Not applicable

（2）Dividend receivable

1）Category of dividend receivable

In RMB

Items Closing balance Opening balance

Guangdong Yudean Anxin Company 0 2652502

Total 2652502

2）Bad-debt provision

□ Applicable √ Not applicable

Other note：

（2） Other accounts receivable

1) Other accounts receivable classified by the nature of accounts

In RMB

Nature Closing book balance Opening book balance

Entrust loans receivable 50000000 66460000

Supplementary medical insurance fund

receivable

16652424 18333314

Sales of by-products receivable 12356357 8282082

Advances receivable 7888627 7809969

Other 7577994 4073484

Total 94475402 104958849

2）Bad-debt provision

In RMB

Bad Debt Reserves

Stage 1 Stage 2 Stage 3

Total Expected credit

losses over the next

12 months

Expected credit loss over

life (no credit impairment)

Expected credit losses for

the entire duration (credit

impairment occurred)

Balance as at January 1

2020

151165 151165

Balance as at January 1

2020 in current

—— —— —— ——

Balance as at June

302020

151165 151165

Loss provision changes in current period change in book balance with significant amount

□ Applicable √Not applicable

Disclosure by aging

In RMB

Aging Closing balanceWithin 1 year(Including 1 year） 77612018

1-2 years 16743677

2-3 years 0

Over 3 years 119707

4-5 years 119707

Total 94475402

3) Top 5 of the closing balance of the other accounts receivable collected according to the arrears party

In RMB

Name Nature Closing balance Aging

Proportion of the

total year end

balance of the

accounts receivable

Closing balance of

bad debt provision

Lincang Company

Entrust loans

receivable

50000000

Within 1 year（Including 1 year）

52.92% 0

Taikang Endowment

Insurance Co. Ltd.Guangdong Branch

Supplementary

medical insurance

fund receivable

166524241-2 years（Including

2 years）

17.63% 0

Guangdong Yudean

Environmental

Protection Co. Ltd.Sales of by-products

receivable

12356357

Within 1 year（Including 1 year）

13.08% 0

Guangdong Yudean

Binhaiwan Energy

Co. Ltd.

Advances receivable 6414037

Within 1 year（Including 1 year）

6.79% 0

Guangdong Energy

Group

Other 1155660

Within 1 year（Including 1 year）

1.22% 0

Total -- 86578478 -- 91.64% 0

3. Long-term equity investment

In RMB

Items

End of term Beginning of term

Book Balance

Impairment

provision

Book value Book Balance

Impairment

provision

Book value

Investment in

subsidiaries

21962139454 1251824079 20710315375 21366889333 1251824079 20115065254

Investment in

joint ventures and

associates

6396931109 96327854 6300603255 6495369113 96327854 6399041259

Total 28359070563 1348151933 27010918630 27862258446 1348151933 26514106513

（1）Investment in subsidiaries

In RMB

Investees

Opening

balance

Increase /decrease

Closing balance

of impairment

provision

Add

investment

Decreased

investment

Withdrawn

impairment

provision

Other

Zhanjiang

Company

2185334400 2185334400

Yuejia Company 0 0 455584267

Zhenneng

Company

687458978 687458978

Jianghai

Company

1930395668 1930395668

Zhanjiang Wind

power Co. Ltd.

242277000 242277000

Zhongyue

Comapny

963000000 963000000 187248115

Humen Power

Generation

Company

3192416 3192416 86807584

Anxin Company 20000000 20000000

Bohe Company 3167000000 3167000000

Pinghai Power

Generation plant

720311347 720311347

Red Bay

Comany

2220023386 2220023386

Huizhou Natural

gas Company

1205199446 1205199446

Guangqian

Company

1353153223 1353153223

Yuejiang

Company

745200000 147650121 892850121 408494674

Huadu Natural

Gas Company

186550000 186550000

Dapu Company 1040000000 1040000000

Guangdong

Wind Power

Company

1531419390 200000000 1731419390

Leizhou Wind

Power Company

80800000 80800000

Qujie Wind

Power Company

919750000 160000000 1079750000

Yudean Electric

Sale

230000000 230000000

Lincang

Company

314000000 314000000 113689439

Yongan Natural

Gas Company

90000000 90000000

Tongdao Wind

Power Company

10000000 50000000 60000000

Binhaiwan

Company

270000000 270000000

Daya Bay

Company

0 17600000 17600000

Qiming

Company

0 20000000 20000000

Total

2011506525

447600000 147650121 20710315375 1251824079

（2）Investment in joint ventures and associates

In RMB

Name of

investee

Beginnin

g of term

Increase/decrease in this period

End of

term

Balance

of the

provision

on for

impairme

Increase

investmen

Decrease

investmen

Investme

nt income

under

equity

method

Other

comprehe

nsive

income

Other

changes

in equity

Announce

d for

distributin

g cash

dividend

or profit

Provision

for

impairme

Other

I.Joint venture

Industry

Fuel

6152183

2435575

6909043

5704836

Subtotal

6152183

2435575

6909043

5704836

II. Associated

Guohua

Taishan

Company

2085355

939

4014866

1461362

1979368

350

Shanxi

Energy

Company

1644203

546

9980949

2000000

1724013

038

Yudean

Shipping

Company

4488695

-199263

4289432

West

Investme

Company

1424432

3059567

1455028

Yangshan 5397723 5397723

Jiangkeng

Yangzhan

Zhongxin

keng

8043666 8043666

Energy

Group

Finance

Company

9918823

5236343

7316190

9710839

Yudean

Captive

2614040

6601704 1573263

2664324

Weixin

Energy

Company

1962228

5111625

2013344

9632785

Subtotal

5783822

959

1871681

2408714

5730119

640

9632785

Total

6399041

259

2115238

3099618

6300603

255

9632785

（3）Other note

4. Business income Business cost

In RMB

Items

Amount of current period Amount of previous period

Income Cost Income Cost

Main business 433972161 501292187 958557256 977497449

Other business 35582003 506701 26351826 636432

Total 469554164 501798888 984909082 978133881

Income related information:

In RMB

Contract classification Division 1 Division 2 Total

Including：

Power Selling 433972161 433972161

粉煤灰销售收入 11187917 11187917

Rent 5107497 5107497

Other income 19286589 19286589

Including：

Guangdong 469554164 469554164

Including：

Power Market 433972161 433972161

Other market 35582003 35582003

Including：

Physical delivery 445160078 445160078

Provide labour 19286589 19286589

Provide use right 5107497 5107497

Including：

Recognize at a certain

time point

445160078 445160078

Recognize in a certain

period of time

24394086 24394086

Including：

Total 469554164 469554164

Information related to performance obligations:

Commodity type Usual performance time of performance

obligation

Important payment terms Commodity nature

Electric power When power is supplied to the grid company Cash settlement/monthly

settlement

Electric power

Power generation

products

When heat energy is supplied to customers

who buy heat

Power generation

by-product commodity

Labor service When by-products such as fly ash generated

by power generation are transported to the

agreed delivery place

Labor service

Information related to the transaction price apportioned to the residual performance obligation:

The income corresponding to the performance obligations that have not been performed or have been performed

incompletely but the contract has been signed at the end of the reporting period is RMB 0 of which RMB 0 is

expected to be recognized as income in the year RMB 0 is expected to be recognized as income in the year and

RMB0 is expected to be recognized as income in the year.

It is the margin deposit that Huizhou Pingdian Integrated Energy Co. Ltd. ("Pingdian Integrated") a subsidiary of

the Group applied to the bank to issue a performance guarantee for participating in the electricity sales business

in Guangdong Electric Power Trading Center.Other note：

5. Investment income

In RMB

Items Amount of current period Amount of previous period

Long-term equity investment income

accounted by cost method

1092290730 754387025

Long-term equity investment income

accounted by equity method

211523852 270083891

Investment income from the disposal of

tradable financial assets

252763

Dividend income from investments in other

equity instruments during the holding period

21370444 30580379

Other 10400300 10171424

Total 1335585326 1065475482

6.Other

XVII. Supplement information

1. Particulars about current non-recurring gains and loss

√ Applicable □ Not applicable

In RMB

Items Amount Notes

Non-current asset disposal

gain/loss(including the write-off part for

which assets impairment provision is made)

51176776

Yuejia Company liquidated the proceeds

from the sale of machinery and equipment.Govemment subsidy recognized in current

gain and loss(excluding those closely related

to the Company’s business and granted

under the state’s policies)

8974941

Mainly due to Zhenneng Company

received unemployment insurance rebate

and Guangqian Company received subsidy

for stable growth of electricity.Other non-business income and expenditures

other than the above

-285673

Fines and overdue payment fees -2784751

Non-current assets scrap income 8035492

Mainly due to the income from

scrapped fixed assets of Zhongyue

Company and Pinghai Power Plant.

Loss of Non-current assets scrapped -1124738

Less: Amount of influence of income tax 16693859

Influenced amount of minor shareholders’

equity (after tax)

18156402

Total 29141786 --

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in

the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the

Public-Extraordinary Gains and Losses or classifies any extraordinary gain/loss item mentioned in the said

explanatory announcement as a recurrent gain/loss item.

□ Applicable √Not applicable

2. Return on net asset and earnings per share

Profit of report period Weighted average return on equity(%)

Earnings per share

Basic earnings pershare(yuan/share）

Diluted earnings per

share(yuan/share)

Net profit attributable to the

Common stock shareholders of

Company.

3.03% 0.1550 0.1550

Net profit attributable to the

Common stock shareholders of

Company after deducting of

2.91% 0.1494 0.1494

non-recurring gain/loss.

3.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 Net assets

Amount in the reporting

period

Amount in the previous

period

End of the reporting

period

Beginning of the

reporting period

According to CAS 813684495 581569383 26356282412 26178241077

Items and amount adjusted according to IAS

The difference arising

from recognition of

goodwill after merger of

enterprises under the same

control

38638777 38638777

Difference arising from

recognition of land use

value after enterprise

merger

-315000 -315000 16655000 16970000

Influence on minority

interests

27060 27060 4891399 4864339

According to IAS 813396555 581281443 26416467588 26238714193

(2) Discrepancy in net profit and net assets as disclosed in the financial report respectively according to the

accounting standards outside Mainland China and CAS

□ Applicable √ Not Applicable

(3) Note to the discrepancy in accounting data under the accounting standards outside Mainland China. In case the

discrepancy in data which have been audited by an overseas auditing agent has been adjusted please specify the

name of the overseas auditing agent.(a) The difference arising from recognition of goodwill after merger of enterprises under the same control and

recognition of land value after enterprise merger.

As required by new Chinese accounting standards the goodwill formed by the merger of enterprises under

the same control shall not be recognized and capital surplus shall be adjusted. Under IFRS the golldwill

formed by the merger of enterprises under the same control shall be recognized and equal to the difference

between merger cost and share of fair value of recognizable net assets of the purchased party obtained in

merger. Meanwhile all assets of the purchased party obtained in merger shall be accounted for according to

their fair value while such assets shall be accounted for according to their book value according to original

Chinese accounting standards for business enterprises. Therefore this difference will continue to exist.

(b) Influence on minority interests

Housing reform loss occurred to the Company and some holding subsidiaries. Therefore there’s some

influence on minority interests.4.Other

XII. Documents available for inspection

1.Text of Semi-annual report carrying the signature of Chairman of the Board;

2.Financial statements bearing the seal and signature of legal representative financial controller and the person in

charge of the accounting organ;

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.The article of association of the Company;

5. English version of the semi-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

August 28 2020

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