2022 Annual Report Guangdong Electric Power Development Co. Ltd.2022 Annual Report March 20232022 Annual Report I. Important Notice Table of Contents and Definitions The Board of Directors Supervisory Committee Directors Supervisors and Senior Executives of the Company hereby guarantees that there are no misstatement misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity accuracy and completeness of the contents hereof.Mr.Zheng Yunpeng The company leader Mr. Liu Wei chief financial officer and the Mr.Meng Fei the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this Annual report.Directors other than the following ones have attended the Board meeting to review the annual report.The name of director who did not The name of director who was Position of absent director Reason attend the meeting in person authorized Li Fangji Director Due to business Zheng Yunpeng This annual report involves the forecasting description such as the future plans and does not constitute the actual commitments of the company to the investors. Investors and stakeholders should all maintain sufficient awareness of risks for this and understand the differences between plans forecasts and commitments.The company is mainly engaged in thermal power generation. The business of thermal power generation is greatly affected by factors including electric power demand and fuel price. For details please refer to the possible risk factors that the company may face in the "Risks facing the company and countermeasures " in the Section III "Management Discussion & Analysis".The company will not distribute cash dividend or bonus shares neither capitalizing of common reserves. 12022 Annual Report Table of Contents I.Important Notice Table of contents and Definitions II. Company Profile & Financial Highlights.III. Management Discussion & Analysis IV. Corporate Governance V. Environmental & Social Responsibility VI. Important Events VII. Change of Share Capital and Shareholding of Principal Shareholders VIII. Situation of the Preferred Shares IX. Corporate Bond X. Financial Report 22022 Annual Report Documents available for inspection 1.Financial statements bearing the seal and signature of legal representative financial controller and the person in charge of the accounting organ; 2. Original audit report seal with accounting firms and signature and seal from CPA; 3.All original copies of official documents and notices which were disclosed in Securities Times China Securities and Hong Kong Commercial Daily (Both English and Chinese version); 4.Chinese version of the 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). 32022 Annual Report Definition Terms to be defined Refers to Definition Guangdong Energy Group Refers to Guangdong Energy Group Co. Ltd.Sha A Power plant Refers to Guangdong Electric Power Development Co. Ltd. Sha APower plant Xinjiang Branch Refers to Guangdong Electric Power Development Co. Ltd.XinjiangBranch Qinghai Branch Refers to Guangdong Electric Power Development Co. Ltd. QinghaiBranch Zhanjiang Electric Power Refers to Zhanjiang Electric Power Co. Ltd.Yuejia Company Refers to Guangdong Yuejia Electric Power Co. Ltd.Shaoguan Power Genration Refers to Guangdong Yudean Shaoguan Power Generation Co. Ltd.Plant Guangdong Energy Maoming Thermal Power Plant Co.Maoming Thermal Power Plant Refers to Ltd.Jinghai Company Refers to Guangdong Yudean Jinghai Power Co. Ltd.Humen Power Company Refers to Guangdong Yudean Humen Power Co. Ltd.Technology Engineering Refers to Guangdong Yudean Technology Engineering ManagementCompany Co. Ltd Zhanjiang Zhongyue Refers to Zhanjiang Zhongyue Energy Co. Ltd.Bohe Company Refers to Guangdong Yudean Energy Co. Ltd.Huadu Company Refers to Guangdong Huadu Natural Gas Thermal Power Co. Ltd.Dapu Power Plant Refers to Guangdong Dapu Power Generation Co. Ltd.Wind Power Company Refers to Guangdong Wind Power Co. Ltd.Guangqian Company Refers to Shenzhen Guangqian Electric Power Co. Ltd.Electric Power Sales Company Refers to Guangdong Yudean Electric Power Sales Co. Ltd.Huizhou Natural Gas Company Refers to Guangdong Huizhou Natural Gas Power Co. Ltd.Red Bay Company Refers to Guangdong Red Bay Power Co. Ltd.Pinghai Power Plant Refers to Guangdong Huizhou Pinghai Power Co. Ltd.Lincang Company Refers to Lincang Yudean Energy Co. Ltd.Yongan Company Refers to Guangdong Yudean Yongan Natural Gas Thermal PowerCo. Ltd.Binhaiwan Energy Company Refers to Guangdong Yudean Binhaiwan Energy Co. Ltd.Dayawan Energy Refers to Guangdong Yudean Dayawan Integrated Energy Co. Ltd.Qiming Energy Refers to Guangdong Yudean Qiming Energy Co. Ltd.Huaguoquan Company Refers to Shenzhen Huaguoquan Electric Industry Service Co. Ltd.Dananhai Company Refers to Guangdong Yudean Dananhai Intelligence Energy Co. Ltd.Yudean Baihua Refers to Guangdong Yudean Baihua Integrated Energy Co. Ltd.Bijie Energy Refers to Guangdong Bijie New Energy Co. Ltd.Shaoguan New Energy Refers to Guangdong Shaoguan Yuedianli New Energy Co. Ltd.Henan New Energy Refers to Henan Yudean New Energy Co. Ltd.Sha C Company Refers to Guangdong Shajiao( plant C) Power Generation Co. Ltd.Yuehua Power Generation Refers to Guangdong Yuehua Power Generation Co. Ltd.Yunhe Power Generation Refers to Guangdong Yudean Yunhe Power Generation Co. Ltd.Tumu Thermal Power Refers to Tumushuke Thermal Power Co.Ltd.Hanhai Energy Refers to Tumushuke Yudean Hanhai New Energy Co. Ltd.Huibo Energy Refers to Guangdong Huibo New Energy Co. Ltd.Jinxiu Energy Refers to Yuedean Jinxiu Energy Co. Ltd. 42022 Annual Report Songshanhu Company Refers to Dongguan Songshanhu Yudean Energy Service Co. Ltd.Senhong Energy Refers to Nanjing Senhong New Energy Co. Ltd.Linyuan Senhai Energy Refers to Nanjing Linyuan Senhai New Energy Co. Ltd.Zhennan Energy Refers to Yunfu Zhennan New Energy Co. Ltd.Luoding Energy Refers to Yunfu Luoding Yudean New Energy Co. Ltd.Alxa League Energy Refers to Alxa League Yudean New Energy Co. Ltd.Sanmenxia Guangneng Refers to Sanmenxia Guangneng New Energy Co. Ltd.Liangguang Energy Refers to Huazhou Yudean Liangguang New Energy Co. Ltd.Caojiang Energy Refers to Gaozhou Yudean Caojiang New Energy Co. Ltd.Dongrun Zhongneng Refers to Taishan Dongrun Zhongneng New Energy Co. Ltd.Maoming Natural Gas Refers to Guangdong Yudean Maoming Natural Gas Co. Ltd.Xingyue Energy Refers to Meizhou Xingyue New Energy Co. Ltd.Xinguangyao Energy Refers to Laixi Xinguangyao New Energy Technology Co. Ltd.Shache Energy Refers to Yudean Shache Comprehensive Energy Co. Ltd.Zhenyun Energy Refers to Yunfu Yudean Zhenyun New Energy Co. Ltd.Zhenneng Energy Refers to Yunfu Yudean New Energy Co. Ltd.Zhuhai Energy Refers to Zhuhai Yudean New Energy Co. Ltd.Liuzhou Energy Refers to Guangxi Liuzhou Yudean New Energy Co. Ltd.Lvneng Energy Refers to Guangdong Yudean Lvneng New Energy Co. Ltd.Dianbai Energy Refers to Maoming Dianbai New Energy Co. Ltd Tuoqian Energy Refers to Huanggang Tuoqian New Energy Co. Ltd.Gaozhou Intelligence New Refers to Gaozhou Yudean Intelligence New Energy Co. Ltd.Energy Hainan Guangneng Refers to Hainan Guangneng Yudean New Energy Co. Ltd.Guangzhou New Energy Refers to Guangdong Yudean New Energy Development Co. Ltd.Changha Energy Refers to Tumushuke Yudean Changhe New Energy Co. Ltd.Caohu Energy Refers to Tumushuke Yudean Caohu New Energy Co. Ltd.Xingneng Energy Refers to Qinghai Yudean Xingneng New Energy Co. Ltd.Zhanjiang Guangneng Refers to Zhanjiang Guangneng Yudean New Energy Co. Ltd.Baohe Energy Refers to Gaozhou Yudean Baohe New Energy Co. Ltd.Fushun Energy Refers to Fushun Yudean New Energy Co. Ltd.Leizhou Power Generation Refers to Guangdong Yudean Leizhou Power Generation Co. Ltd.Jiuzhou New Energy Refers to Jiuzhou New Energy(Zhaoqing)Co. Ltd.Refers to Xiangtan Xiangdian Chanshan Wind Power GenerationChangshan Wind Power Co. Ltd.Guangxi Xinyue Refers to Guangxi Xinyue New Energy Co. Ltd.Zhanjiang Biomass Power Refers to Guangdong Yudean Zhanjiang Biomass Power Generation Generation Company Co. Ltd.Shibeishan Wind Power Refers to Guangdong Yudean Shibeishan Wind Energy DevelopmentCo. Ltd.Dianbai Wind Power Company Refers to Guangdong Yudean Dianbai Wind Power Co. Ltd.Huilai Wind Power Company Refers to Huilai Wind Power Generation Co. Ltd.Yangjiang Wind Power Refers to Guangdong Yudean Yangjiang Offshore Wind Power Co.Company 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.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. 52022 Annual Report Pingdian Integrated Energy Company Refers to Huizhou Pingdian Integrated Energy Co. Ltd.Zhuhai Wind Power Company Refers to Guangdong Yudean Zhuhai Offshore Wind Power Co. Ltd.Zhanjiang Wind Power Company Refers to Guangdong Yudean Zhanjiang Wind Power Generation Co. Ltd.Qujie Wind Power Company Refers to Guangdong Yudean Qujie Wind Power Generation Co.Ltd.Leizhou Wind Power Company Refers to Guangdong Yudean Leizhou Wind Power Generation Co.Ltd.Tongdao Wind Power Company Refers to Tongdao Yuexin Wind Power Generation Co. Ltd.Yudean Fuel Company Refers to Guangdong Power Industry Fuel Co. Ltd.Guangdong Energy Insurance Captive Company Refers to Guangdong Energy Property Insurance Captive Co. Ltd.Shanxi Energy Company Refers to Shanxi Yudean Energy Co. Ltd.Yudean Shipping Company Refers to Guangdong Yudean Shipping Co. Ltd.Yueqian Company Refers to Guizhou Yueqian Electric Co. Ltd.Guangdong Energy Finance Refers to Guangdong Energy Group Finance Co. Ltd.Company Energy Financial Leasing Company Refers to Guangdong Energy Financial Leasing Co. Ltd.Guoneng Taishan Company Refers to Guoneng 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 Environmental Protection Company Refers to Guangdong Yudean Environmental Protection Co. Ltd. 62022 Annual Report II. Company Profile & Financial Highlights. 1.Company profile Stock abbreviation Yue Dian Li A Yue Dian Li B Stock code： 000539200539 Stock exchange for listing Shenzhen Stock Exchange Name in Chinese 广东电力发展股份有限公司 Abbreviation of Registered Company Name in Chinese( 粤电力 English name (If any) GUANGDONG ELECTRIC POWER DEVELOPMENT CO.LTD English abbreviation (If any) GED Legal Representative Zheng Yunpeng Registered address 33-36/F South Tower Yudean Plaza No.2 Tianhe Road East GuangzhouGuangdong Province Postal code of the Registered Address 510630 Historical change of the company's registered address No Office Address 33-36/F South Tower Yudean Plaza No.2 Tianhe Road East GuangzhouGuangdong Province Postal code of the office address 510630 Internet Web Site http://www.ged.com.cn E-mail ged@ged.com.cn 2. Contact person and contact manner Board secretary Securities affairs Representative Name Liu Wei Huang Xiaowen Contact address 35/F South Tower Yudean Plaza No.2 Tianhe 35/F South Tower Yudean Plaza No.2 Tianhe RoadRoad East GuangzhouGuangdong Province East GuangzhouGuangdong Province Tel (020)87570251 (020)87570251 Fax (020)85138084 (020)85138084 E-mail liuw@ged.com.cn huangxiaowen@ged.com.cn 3. Information disclosure and placed Newspapers selected by the Company for information China Securities Daily Securities Times and Hong Kong Commercial disclosure Daily(overseas newspaper for English version) Internet website designated by CSRC for publishing the annual report of the Company http://www.cninfo.com.cn The place where the Annual report is prepared and placed Affair Dept. Of the Board of directors of the Company 4.Changes in registration Unified social credit code 91440000617419493W On August 252021 The company's main business consists of " investment construction and operation management of power projects production and sales of power technical consulting Changes in principal business and services in the power industry leasing of terminal facilities general cargo warehousing activities since listing (if any) loading and unloading and transportation services. (projects subject to approval according to law business activities can only be carried out after being approved by the relevantdepartments)” is changed to “investment construction and operation management of power 72022 Annual Report projects and new energy projects; production and sales of electric power; technical consulting and services in the power industry; leasing of terminal facilities; general cargo storage loading and unloading shipment service. (projects subject to approval according to law business activities can only be carried out after being approved by the relevant departments)".Changes is the controlling shareholder in the past (is any) No change 5. Other Relevant Information CPAs engaged Name of the CPAs PWC Certified Public Accountants (special general partnership) 11/FPricewaterhouseCoopers Center2 Corporate Avenue 202 Hu Bin Road Huangpu Office address District Shanghai Names of the certified public Li Xiaolei Fan Xin accountants as the signatories The sponsor performing persist ant supervision duties engaged by the company in the reporting period.□Applicable √Not Applicable The Financial advisor performing persist ant supervision duties engaged by the company in the reporting period □Applicable √Not Applicable 6.Summary of accounting data and financial index Whether it has retroactive adjustment or re-statement on previous accounting data √Yes □ No Retroactive adjustment or restatement of causes Accounting policy change Changes of this period over same 20212020 period of 2022 Last year(%) Before After Before adjustment After adjustment adjustment After adjustmentadjustment Operating income Yuan 52661088436 44167223887 44457866542 18.45% 33602895865 33602895865（ ） Net profit attributable to the shareholders of the -3003916572 -3147754234 -2928171731 -2.59% 2053909956 2053909956 listed company（Yuan） Net profit after deducting of non-recurring gain/loss attributable to the -2936757038 -2905313714 -2685731211 -9.35% 1551209648 1551209648 shareholders of listed company（Yuan） Cash flow generated by business operation net 1479864774 -40304011 122174668 1111.27% 7754798636 7754798636（Yuan） Basic earning per share(Yuan/Share) -0.5721 -0.5995 -0.5577 -2.59% 0.3912 0.3912 Diluted gains per -0.5721 -0.5995 -0.5577 -2.59% 0.3912 0.3912 82022 Annual Report share(Yuan/Share) Weighted average ROE(%) -13.77% -10.72% -9.94% -3.83% 6.95% 6.95% Changed End of 2021 over last End of 2020 End of 2022 year（％） Before After adjustment After Beforeadjustment adjustment adjustment After adjustment Gross assets（Yuan） 131504274884 114271451479 114493083598 14.86% 99479773162 99479773162 Net assets attributable to shareholders of the listed 20241872479 23185079805 23386185436 -13.45% 31820079621 31820079621 company（Yuan） Reasons of accounting policy change and correction of accounting errors In 2021 the Ministry of Finance issued the Notice on Printing and Distributing the "Interpretation of Accounting Standards for Business Enterprises No. 15" (hereinafter referred to as "Interpretation No. 15"). The company implemented the provisions related to the trial operation sales of fixed assets in the Interpretation No. 15 from January 1 2022 and retroactively adjusted the trial operation sales revenue incurred between January 1 2021 and the implementation date. The comparative financial statements for 2021 were restated accordingly. The above accounting policy changes have no impact on the balance sheet as of January 1 2021.□ Yes √No The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.√ Yes □ No Items 2022 2021 Note Including electricity sales income steamOperating income( Yuan） 52661088436 44457866542 income labor service income and a few other business income unrelated to the main business Operating income after It is other business income unrelated to the 4403450994784789993deduction( Yuan） main business.Operating income after Including electricity sales income steam 5222074333739673076549 deduction( Yuan) income and labor service income 7.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 None 2） Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.□ Applicable √Not applicable None 8.Main financial index by quarters In RMB First quarter Second quarter Third quarter Fourth quarter Operating income 11389443592 11221796141 16875114202 13174734501 92022 Annual Report Net profit attributable to the shareholders of the listed company -449739596 -925999569 -343808193 -1284369214 Net profit after deducting of non-recurring gain/loss attributable to the shareholders of -461615643 -937994191 -350046170 -1187101034 listed company Net cash flow generated by business operation -620286887 411928377 2777296829 -1089073545 Whether significant variances exist between the above financial index or the index with its sum and the financial index of the quarterly report as well as semi-annual report index disclosed by the company.□Yes□No 102022 Annual Report 9.Items and amount of non-current gains and losses √Applicable □Not applicable In RMB Items Amount Amount Amount(2022) (2021) (2020) Notes Non-current asset disposal gain/loss(including It is mainly Yuejia is due the write-off part for which assets impairment 30802837 82842178 340976361 to the settlement of houses provision is made) and buildings Government subsidy recognized in current gain It is various government and loss(excluding those closely related to the Company’s business and granted under the 51267272 37606578 30457198 funds received by state’s policies) branches and subsidies.Gain equal to the amount by which investment costs for the Company to acquire subsidiaries associates and joint ventures are lower than the 0 0 9784791 Company’s enjoyable fair value of identifiable net assets of investees when making investments It is mainly because the some assets in Yangjiang Wind Power was seriously damaged by typhoon causing operation failure.Asset impairment provisions due acts of God -83358694 0 0 The Company evaluates such as natural disasters the recoverable value of the damaged assets and makes provision for impairment according to the evaluation results.Net gain and loss of the subsidiary under the common control and produced from enterprise 0-658714842559324501 consolidation from the beginning of the period to the consolidation date Operating income and expenses other than the aforesaid items 46299376 16979172 36323955 Other gains/losses in compliance with the It is mainly the loss of definition of non-recurring gain/loss asset retirement claim -57924953 82674743 5001523 settlement and compensation income of branches and subsidiaries.Less :Influenced amount of income tax 38582624 55885342 106635578 Influenced amount of minor shareholders’ equity (after tax) 15662748 -252056993 372532443 Total -67159534 -242440520 502700308 -- Details of other profit and loss items that meet the non-recurring profit and loss definition □ Applicable√ Not applicable None For the company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies 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. 112022 Annual Report √ Applicable □ Not applicable Items Amountinvolved(RMB) Reason According to the VAT refund policy the company Value-added tax will be refunded immediately 28893040 and its controlled subsidiaries are in compliancewith relevant regulations and continue to enjoy the VAT refund immediately Carbon emission quota used to fulfill the Comply with national policies and regulations and emission reduction obligation -306786693 continue to occur. 122022 Annual Report III. Management Discussion & Analysis I. Industry information of the company during the reporting period The company shall comply with the disclosure requirements of power-related industries in the Guideline No.3 for Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure.According to the statistics of the national power industry in 2022 published by the National Energy Administration the electricity consumption of the whole society in China in 2022 was 8.64 trillion kWh with a year-on-year increase of 3.6%. The electricity consumption of the primary industry was 114.6 billion kWh with a year-on-year increase of 10.4%; The electricity consumption of the secondary industry was 5.7 trillion kWh with a year-on-year increase of 1.2%; The electricity consumption of the tertiary industry was 1.49 trillion kWh with a year-on-year increase of 4.4%; The domestic electricity consumption of urban and rural residents was 1.34 trillion kWh with a year-on-year increase of 13.8%. In terms of power supply with the goal of "carbon peaking and carbon neutrality" and the development requirements of building a new power system new energy sources such as wind power and solar power have entered the "fast lane" of high-quality development and the installed capacity has increased year by year in the total installed capacity of power generation in China with remarkable results of green and low-carbon transformation in the power industry. By the end of 2022 the cumulative installed power generation capacity in China was about 2.56 billion kilowatts with a year-on-year increase of 7.8% in which the installed capacity of wind power is about 370 million kilowatts with a year-on-year increase of 11.2%; The installed power generation capacity of solar power is about 390 million kilowatts with a year-on-year increase of 28.1%; The installed capacity of coal-fired power is about 1.121 billion kilowatts with a year-on-year increase of 1% and the power generation of coal-fired power is up 0.7% year-on-year accounting for 58.4% of the total power generation. Combined with the installed capacity and power generation coal-fired power is still the most important power supply in China and it is also the "ballast stone" to ensure the safe and stable supply of electricity in China.In 2022 the fuel price remains high and the operation of thermal power enterprises is facing great challenges. According to the transaction results announced by Guangdong Power Exchange Center in December 2022 the average transaction price of bilateral negotiation transactions annual listing transactions and annual centralized competition transactions in the province in 2023 increased year on year with the average transaction price of bilateral negotiation being RMB 553.88/thousand kWh which was RMB 56.84/thousand kWh higher than the previous year. At the same time the Energy Bureau of Guangdong Province and the South China Energy Regulatory Office of Nation Energy Administration jointly issued the Notice on Matters Related to Electricity Market Transactions in 2023 proposing that when the price fluctuation of primary energy exceeds a certain range the primary energy price fluctuation transmission mechanism shall be started according to the market operation to promote the transmission of cost pressure to the downstream. In addition in the first half of 2022 the National Development and Reform Commission successively issued the Notice on Further Improving the Price Formation Mechanism of the Coal Market and related documents to strengthen the regulation and supervision of the coal market price guide the coal price within a reasonable range promote the coordinated development of coal and electricity upstream and downstream and ensure the safe and stable supply of energy.To sum up the increase of transaction price in the medium and long-term market is conducive to the reasonable diversion of the upstream coal price cost pressure to the downstream. Meanwhile if the coal price can fall back to a reasonable range under the guidance of national policies the company's operating pressure will be released to a certain extent and its profit outlook will be improved. 132022 Annual Report II.Main Business the Company is Engaged in During the Report Period The company shall comply with the disclosure requirements of power-related industries in the Guideline No.3 for Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure.The company is mainly engaged in the investment construction and operation management of electric power projects and new energy projects as well as the production and sales of electric power. It belongs to the powerheat production and supply industry classified in the “Guidelines for the Industry Classification of ListedCompanies” 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 for electricity and benefiting the public” and adheres to the business policy of “Centering on the main business of electricity with diversified development” focusing on the main business of power and making the power structure go diversified. In addition to the development construction and operation of large-scale coal-fired power plants it also has clean energy projects such as LNG power generation wind power generation and hydropower generation which provides reliable and clean energy to users through the grid company. As of the end of 2022 the company has controllable installed capacity of 31.444 million kilowatts including holding installed capacity of 29.6962 million kilowatts and equity participation installed capacity of 1.7478 million kilowatts. Including: The holding installed capacity for coal- fired power generation was 20.55 million kilowatts accounting for 69.2%; the holding installed capacity for gas and electricity of 6.392 million kilowatts accounting for 21.52%；and renewable energy generation like wind power and hydropower of 2.7542 million kilowatts accounting for 9.27%. .In addition the company is entrusted with managing the installed capacity of 8.854 million kilowatts . The above controllable installed capacity and entrusted management installed capacity totaled 39.986 million kilowatts.Income source is primarily contributed by power production and sales and main business income is derived from Guangdong province. The company electricity sales price is subject to the benchmark price verified by the price authority per relevant policies based on National Development and Reform Commission (NDRC) and the electricity transaction price through the market trade implementation per Guangdong Electricity Market Trade Basic Rules and supporting files. In the reporting period the electricity sold is 107.679 billion kilowatt-hours an increase of 2.16% YOY; average price stated in the consolidated statements is 545.55 Yuan/ thousands kilowatt-hours(tax included the same below ) an increase of 78.44 yuan/ thousands kilowatt-hours or an increast of 16.8% YOY;the total operating income was RMB 52661.09 million an increase of RMB 8203.22 million or an increase of 18.45% YOY.The company's business is dominated by coal-fired power generation and the fuel costs account for a large portion of operating costs thus the fluctuations in coal prices have a significant impact on the company's operating performance. During the reporting period affected by the increase in power generation and the continuous increase in coal prices the company’s fuel costs were 43252.48 million yuan which accounted for 81.84% of the main business costs affected by the sharp increase of power generation and coal price the fuel cost increased by RMB 4588.78 million year on year. an increase of 11.87% .During the reporting period benefiting from the YOY increase in on-grid electricity prices and the orderly promotion of production of new energy projects such as wind power and photovoltaics projects the company's operating income increased significantly. However affected by a variety of factors and the high-levelfuel prices the company's thermal power plants recorded serious losses and the company achieved a net profit attributable to the parent company of -3003.92 million yuan in 2022 down 2.59% YOY. In which the company's coal power business achieved a net profit attributable to the parent company of -3950.78 million yuan; The net profit attributable to the parent company of the gas power business was 186.04 million yuan; The net profit 142022 Annual Report attributable to the parent company from the hydropower business was - 27.23 million yuan; The new energy business achieved a net profit attributable to the parent company of 325.68 million yuan; The investment business of the company's headquarters achieved a net profit attributable to the parent company of 1042.98 million yuan.Main Production and Operation Information Items This reporting period Same period last year Total installed capacity ('0000 kW) 2969.62 2822.52 Installed capacity of units that are newly put into production ('0000 kW) 147.10 218.12 Planned installed capacity of approved projects ('0000 kW) 1803.50 925.23 Planned installed capacity of projects under construction ('0000 kW) 1077.15 696.80 Power generation ('00000000 kWh) 1140.59 1111.77 On-grid electricity or electricity sales ('00000000 kWh) 1076.79 1053.98 Average on-grid price or selling price (RMB/ '00000000 kWh including tax) 0.55 0.47 Average power consumption rate of power plant (%) 5.71 5.23 Power plant utilization hours (h) 3980 4219 （1）Operation Information of thermal power Items This reporting period Same period last year Total installed capacity ('0000 kW) 2694.2 2602.2 Installed capacity of units that are newly put into production ('0000 kW) 92 82 Planned installed capacity of approved projects ('0000 kW) 852 664.8 Planned installed capacity of projects under construction ('0000 kW) 745.60 570.80 Power generation ('00000000 kWh) 1086.73 1077.46 On-grid electricity or electricity sales ('00000000 kWh) 1025.63 1021.45 Average on-grid price or selling price (RMB/ '00000000 kWh including tax) 0.54 0.46 Average power consumption rate of power plant (%) 5.62 5.23 Power plant utilization hours (h) 4110 4606 （2）Operation Information of wind power Items This reporting period Same period last year Total installed capacity ('0000 kW) 234.50 197.04 Installed capacity of units that are newly put into production ('0000 kW) 37.46 136.12 Planned installed capacity of approved projects ('0000 kW) 11.50 0 Planned installed capacity of projects under construction ('0000 kW) 100 104 Power generation ('00000000 kWh) 42.99 23.06 On-grid electricity or electricity sales ('00000000 kWh) 41.15 21.89 Average on-grid price or selling price (RMB/ '00000000 kWh including tax) 0.73 0.68 Average power consumption rate of power plant (%) 4.27 4.61 Power plant utilization hours (h) 2168 2044 （3）Operation Information of water power Items This reporting period Same period last year Total installed capacity ('0000 kW) 13.28 13.28 Installed capacity of units that are newly put into production ('0000 kW) 0 0 Planned installed capacity of approved projects ('0000 kW) 0 0 152022 Annual Report Planned installed capacity of projects under construction ('0000 kW) 0 0 Power generation ('00000000 kWh) 3.76 3.44 On-grid electricity or electricity sales ('00000000 kWh) 3.70 3.39 Average on-grid price or selling price (RMB/ '00000000 kWh including tax) 0.21 0.21 Average power consumption rate of power plant (%) 1.66 1.44 Power plant utilization hours (h) 2833 2589 （4）Operation Information of Biomass business Items This reporting period Same period last year Total installed capacity ('0000 kW) 10 10 Installed capacity of units that are newly put into production ('0000 kW) 0 0 Planned installed capacity of approved projects ('0000 kW) 0 0 Planned installed capacity of projects under construction ('0000 kW) 0 0 Power generation ('00000000 kWh) 7.09 7.89 On-grid electricity or electricity sales ('00000000 kWh) 6.28 7.25 Average on-grid price or selling price (RMB/ '00000000 kWh including tax) 0.75 0.75 Average power consumption rate of power plant (%) 11.37 8.11 Power plant utilization hours (h) 7087 7890 （5）Operation Information of photovoltaic business Items This reporting period Same period last year Total installed capacity ('0000 kW) 17.64 0 Installed capacity of units that are newly put into production ('0000 kW) 17.64 0 Planned installed capacity of approved projects ('0000 kW) 940 260.43 Planned installed capacity of projects under construction ('0000 kW) 231.55 22 Power generation ('00000000 kWh) 0.03 0 On-grid electricity or electricity sales ('00000000 kWh) 0.03 0 Average on-grid price or selling price (RMB/ '00000000 kWh including tax) 0.54 / Average power consumption rate of power plant (%) 1.11 / Power plant utilization hours (h) 146 / Note：1. The total installed capacity is the holding installed capacity In 2021 the Company's photovoltaic power generation was only used in the factory.Electricity sales business of the Company √ Applicable □ Not applicable Guangdong Yudean Electric Power Sales Co. Ltd. ("Sales company") a wholly-owned subsidiary of the company founded in July 2015 is the first power sales company in Guangdong province and its power sales qualification code is SD01. Based on the business of purchasing and selling electricity the sales company focuses on improving electricity efficiency provides customers with services such as demand response strategy energy saving renovation energy consumption strategy consultation contracted energy management power energy storage etc. and carries out comprehensive energy service projects (smart energy management carbon asset management energy trusteeship energy audit etc.) in vertical (industry) fields large group enterprises and large parks.In 2022 the electricity consumption of the sales company was 49.193 billion kWh with a year-on-year decrease of 8.59% in which the electricity of the holding subsidiary of the agency company is 41.084 billion kWh accounting for 38.15% of the company's on-grid electricity. 162022 Annual Report Reasons for the significant changes in the relevant data □ Applicable √Not applicable Related new energy power generation business During the "14th Five-Year Plan" period the company initially planned to add about 14 million kilowatts of new energy installed capacity including 1.6 million kilowatts of onshore wind power 2.8 million kilowatts of offshore wind power and 9.6 million kilowatts of photovoltaic power (the above-mentioned planned installed capacity and power generation type will be determined according to the actual situation of project approval for filing investment and development and be subject to some adjustment in specific implementation.) By the end of 2022 the company had a total installed capacity of about 2521400 kilowatts of new energy such as wind power and photovoltaic power including about 1.2 million kilowatts of offshore wind power 1.145 million kilowatts of onshore wind power and 176400 kilowatts of photovoltaic power; In Jianyang Jiangqingzhou No.1 and No.2 offshore wind power projects and Xinjiang Hanhai photovoltaic projects the total installed capacity is 3315500 million kilowatts; The scale of new energy projects that the Company has approved for filing is about 10 million kilowatts. In the future the company will continue to actively grasp the development trend of accelerating energy transformation under the goal of "emission peak" and "carbon neutrality" implement the strategy of "1+2+3+X" actively expand the resources of new energy projects through self-construction and acquisition fully promote the leap-forward development of new energy and build an ecological and civilized power enterprise. 1. As of December 31 2022 the new energy power generation projects controlled by the company that have been put into production are as follows: Project type Project name Installed capacity ( '0000kilowatts) Shareholding ratio Wind Power Zhanjiang Xuwen Yangqian 4.95 70% Wind Power Zhanjiang Xuwen Yongshi 4.95 70% Wind Power Jieyang Huilai Shibeishan 10.0 70% Wind Power Jieyang Huilai Haiwanshi 1.4 90% Wind Power Maoming Dianbai Hot Water 4.95 100% Wind Power Zhanjiang Leizhou Hongxinlou 4.95 94% Wind Power Zhanjiang Xuwen Shibanling 4.95 100% Wind Power Zhanjiang Xuwen Qujie 4.95 100% Wind Power Wailuo I offshore wind power 19.8 100% Wind Power Xuwen Wutushan Wind Power 4.95 51% Wind Power Xuwen Dengjiaolou Wind 4.95 51%Power Wind Power Pingyuan Maoping 4.8 100% Wind Power Zhuhai Jinwan offshore Wind 30 74.49%power Wind Power Zhanjiang Xuwen Wailuo II 20 100%Offshore Wind Power Wind Power Zhanjiang Xuwen Xinliao 20.35 100%offshore wind power Wind Power Yangjiang Shapa offshore wind 30 91.41%power Wind Power Guangxi Wuxuan 5 100% Wind Power Yangjiang Shapa offshore wind 5 100% 172022 Annual Report power Wind Power Guangxi Wuxuan 5 100% Wind Power Decentralized Wind Power in 1.08 65%Shanwei Power Plant Wind Power Nanxiong Zhuan village 4.99 100% Wind Power Xiangtan Changshan 4.4 100% Wind Power Pingyuan Sishui 4 100% Wind Power Henan Xihua Wind Power 1.53 100% Wind Power Henan Wuzhi Wind power 2.5 100% Wind Power Hebei Ziyahe 10 80% Wind Power Zhanjiang Leigao 15.03 51% Photovoltaic Baojia Power generation 0.12 90% Photovoltaic Dapu Power plant 0.20 100% Photovoltaic Jiuzhou New Energy 1.73 100% Photovoltaic Xinhui Power Plant 1.06 46% Photovoltaic Yuehua Company 0.06 51% Photovoltaic Shandong Gaotang 4.05 100% Photovoltaic Jinxiu Wudeng 0.14 90% Photovoltaic Red Bay Power Plant 1 65% Photovoltaic Wushi Wudeng 0.014 100% Photovoltaic Sanhe Xihua 0.46 100% Photovoltaic Haiyan Shalan 1 100% Photovoltaic Shanxi Hongdong 4.8 100% Photovoltaic Meizhou Wuhua 3 100% Total 252.14 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 131.504 billion. It is the largest listed company of power in Guangdong province. It is the only listed company with over 100 billion assets controlled by state-owned holdings in Guangdong province. As of December 31 2022 the company as the largest listed power company in Guangdong Province has a total of 39.986 million kilowatts of controllable installed capacity and entrusted managed installed capacity accounting for about a quarter of the total installed capacity in Guangdong province. 2. Strong background and resource advantages Guangdong Energy Group the controlling shareholder of the company as a provincial key energy enterprise has been actively supporting listed companies to become better and stronger by using the advantages of its resources technology and asset scale. As the only listed company and main force of Guangdong Energy Group the company has always been subordinated to serving the overall situation of the reform and development of Guangdong Province and Guangdong Yudean Group. It has deeply cultivated the main power industry actively 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 During the 14th five-year period guided by the national energy development strategy the company is 182022 Annual Report implementing the "1+2+3+X" strategy - to build a first-class green and low-carbon power listed company coordinate safety and development optimize and strengthen coal gas and biomass power generation services and vigorously develop new energy energy storage hydrogen energy and land park development. The company has abundant project reserves and broad development prospects; With clear main business reasonable structure outstanding industrial position and market share it has 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 2022 the company completed a total of 102.834 billion kilowatt-hours of electricity in the market and the scale of electricity sales continued to rank first in the province with electricity sales prices superior to the province's average. The company gives full play to its three advantages of scale brand and service. With its marketing 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 At present the company's total assets reach 100 billion and the cash flow of its stock business is abundant which provides a good support for the company's sustainable development. The company's financial position is good with good financing channels such as bank credit bonds and securities markets and rich financing methods. The company will make full use of internal and external financial resources to provide strong financial guarantee for the production and operation of enterprises the construction of key projects and the rapid development of new energy industry. 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 helps the "30·60" target to be implemented.IV.Main business analysis Ⅰ.General In 2022 affected by the increasing downward pressure on the economy the overall demand for electricity in Guangdong province remained almost flattened as the previous year reaching 787.034 billion kWh-a YOY increase of 0.05%.In terms of installed capacity by the end of 2022 the regulated installed capacity of Guangdong was 171 million kilowatts with a year-on-year increase of 7.9% of which the installed capacity of coal-fired power was 68.577 million kilowatts with a year-on-year increase of 1%; The installed capacity of gas and electricity was 34.233 million kilowatts with a year-on-year increase of 12.1%; The total installed capacity of wind power and solar power generation was 28.351 million kilowatts with a year-on-year increase of 27.3%.During the reporting period the company accumulated 107.679 billion kWh of on-grid electricity in 192022 Annual Report consolidated statements with a year-on-year increase of 2.16% in which the on-grid electricity of coal machine is 87.805 billion kWh the on-grid electricity of gas machine is 14.758 billion kWh and the on-grid electricity of hydropower wind power and photovoltaic power is 5.116 billion kWh.In 2022 with the deepening of electricity marketization reform and the continuous expansion in the scale of market-oriented transactions in Guangdong province according to the data of Guangdong Power Exchange Center the electricity directly traded in the province's market in 2022 was 298.57 billion kWh of which the electricity negotiated bilaterally was 252.924 billion kWh with a year-on-year increase of 17.62% and the average transaction price is RMB 0.498/kWh; The average on-grid tariff of the consolidated statement of the company was RMB 545.55/thousand kWh (including tax the same below) with a year-on-year increase of RMB 78.44/thousand kWh i.e. 16.8%.In 2022 facing the arduous test of balancing the multiple goals of ensuring supply adjusting structure and stabilizing growth in the power energy industry the company resolutely fulfilled the economic political and social responsibilities of state-owned enterprises and made every effort to ensure the safe production and stable supply of electricity. Despite the positive factors such as the YOY increase in on-grid electricity prices and the orderly promotion of production of new energy projects such as wind power and photovoltaics project it’s still difficult to cover high fuel costs and the company's power generation business continued to lose money. By the end of 2022 the company's total assets in consolidated statements were 131.504 billion yuan a YOY increase of 14.86%; The total liabilities in the consolidated statements were 102.782 billion yuan with an asset-liability ratio of 78.16%; The equity attributable to shareholders of the parent company was 20.242 billion yuan a YOY decrease of 13.45%. The company achieved a consolidated operating income of 52.661 billion yuan a YOY increase of 18.45%; and realized that the net profit attributable to shareholders of the parent company was - 3.004 billion yuan with earnings per share was -0.57 yuan. In 2022 the company added 920000 kilowatts for Huadu Thermal Power 44000 kilowatts for Xiangtan Changshan Wind Power 40000 kilowatts for Pingyuan Sishui Wind Power 100000 kilowatts for Hebei Ziyahe Wind Power 17000 kilowatts for Zhaoqing Jiuzhou distributed photovoltaic power The clean energy projects included the regulation wind power of 150000 kilowatts project and it had a total installed capacity of about 1.471 million kilowatts; By the end of 2022 the Company has a holding installed capacity of 9146200 kilowatts of clean energy power generation such as gas power wind power hydropower photovoltaic and biomass power and the proportion increased to 30.79%. In addition the Company actively promoted the construction of Daya Bay Integrated Energy Station Ningzhou Alternative Power Source ZhaoqingYongan Natural Gas Thermal Power YangjiangQingzhou Offshore Wind Power Xinjiang Hanhai Photovoltaic and other projects continuously optimized the power supply structure and promoted the company's green and low- carbon transformation. 2. Revenue and cost (1)Component of Business Income In RMB 2022 2021 Increase Amount Proportion Amount Proportion /decrease Total operating revenue 52661088436 100% 44457866542 100% 18.45% On Industry Electric power Steam sales 5222074333799.16%4386497261398.67%19.05% and labor income 202022 Annual Report Other 440345099 0.84% 592893929 1.33% -25.73% On products Sales Electric Power 51889521596 98.53% 43568666575 98.00% 19.10% Steam income 202658611 0.38% 167971843 0.38% 20.65% Labor income 128563130 0.24% 128334195 0.29% 0.18% Comprehensive utilization of fly ash 365533200 0.69% 495095811 1.11% -26.17% Lease revenue 42581955 0.08% 48557619 0.11% -12.31% Other 32229944 0.06% 49240499 0.11% -34.55% Area Guangdong 51738933176 98.25% 44292665519 99.63% 16.81% Xinjiang 724019436 1.37% 60100462 0.14% 1104.68% Hunan 81219984 0.15% 26527617 0.06% 206.17% Yunnan 70173996 0.13% 64581623 0.15% 8.66% Guangxi 46017681 0.09% 13991321 0.03% 228.90% Henan Hebei 724163 0% 0 0% / Sub-sale model Direct selling 52661088436 100% 44457866542 100% 18.45% (2)Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit with Profit over 10% √ Applicable □Not applicable The company shall comply with the disclosure requirements of power-related industries in the Guideline No.3 for Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure.In RMB Increase/decre Increase/decre Increase/decre ase of revenue ase of business ase of gross Turnover Operation cost Gross profit in the same cost over the profit rate over rate(%) period of the same period of the same previous previous year period of the year(%) (%) previous year(%) On products Sales Electric Power 51889521596 52503713101 -1.17% 19.10% 12.78% 5.68% Including： Fire coal Generation Power 40624681752 43377979331 -6.78% 15.14% 9.93% 5.06% Gas Generation Power 8110431935 7419474635 8.52% 27.26% 21.97% 3.97% Wind Generation Power 2660095257 1276137628 52.03% 94.30% 118.65% -5.34% Biomass Generation Power 414276939 374369738 9.63% -13.37% 0.62% -12.57% Hydroelectric Generation power 70172853 54756193 21.97% 8.66% -2.47% 8.90% Photovoltaic 986286099557689.91%/// Generation power Area Guangdong 51738933176 51870231552 -0.25% 16.81% 11.15% 5.11% Reasons for great changes in related financial indicators √ Applicable □ Not applicable 212022 Annual Report 1) The company's operating income in Xinjiang increased by 1104.68% year on year mainly because the company acquired Tumushuke Thermal Power Company in December 2021 and the operating income in Xinjiang in 2021 was only the operating income generated after the actual control of Tumushuke Thermal Power Company was acquired. 2) The company's operating income in Hunan increased by 206.17% year on year mainly due to the trial operation of Xupu and Tongdao wind power in the second half of 2021 with less power generation in 2021 and the acquisition of Changshan wind power in 2022 which resulted in the year-on-year increase in electricity sales in this region; 3) The company's operating income in Guangxi increased by 228.90% year on year mainly due to the trial operation of Wuxuan Wind Power in 2021. Due to the influence of trial operation and debugging the power generation in 2021 was small and the electricity sales in this region increased year on year. (3)Whether the Company’s Physical Sales Income Exceeded Service Income √ Yes □ No Classification Items Unit 2022 2021 Changes Electric power Sales volume '00000000 kWh 1076.79 1053.98 2.16% thermal production and supply Production '00000000 kWh 1140.59 1111.77 2.59% Explanation for a year-on –year change of over 30% □ Applicable √Not applicable (4) Performance of the major sales contract major procurement contract signed by the company till end of the Period √ Applicable □Not applicable Implementation of Signed Major Sales Contracts as of this Reporting Period √ Applicable □Not applicable In RMB10000 Amount Description Contract Total Total Whether of the failure object Counterparty contract fulfilled fulfilled during Amount to be amount amount the reporting fulfilled fulfilled to fulfill the period properly contractproperly Quantity CHINA Yes of SOUTHERN 4928894.34 electricity POWER GRID Implementation of Signed Major Purchase Contracts as of this Reporting Period □ Applicable √Not applicable (5)Component of business cost Industry classification In RMB 20222021 Industry Items Proportion in Proportion in Increase/ Amount the operating Amount the operating Decrease costs (%) costs (%) Electric power thermal production and supply Fuel cost 43252482322 81.84% 38663701630 82.57% 11.87% Electric power thermal Depreciation production and supply expense 4708493060 8.91% 4094729526 8.74% 14.99% Electric power thermal Labor cost 1780084083 3.37% 1815101550 3.88% -1.93% 222022 Annual Report production and supply Electric power thermal production and supply Other 3111250716 5.89% 2253972767 4.81% 38.03% Note The company is in power sector and mainly engaged in power generation at present. The cost is composed of fuel cost depreciation expenses labour cost and other expenses. Fuel cost accounts for about 81.84% of total cost affected by the high fuel price in 2022 the fuel cost further increased. (6)Whether Changes Occurred in Consolidation Scope in the Report Period √Yes □No Nature New investment amount Paid-in capital at the Proportion (%) Acquired Name in this period (Yuan) end of period(Yuan) Yudean Jinxiu Integrated Energy Photovoltaic power Co. Ltd. generation 2621800 2913114 90% Invested Guangdong Yudean Huibo New Photovoltaic power Energy Co. Ltd. generation 15492360 15492360 100% Invested Nanjing Linyuan Senhai New Photovoltaic power Energy Co. Ltd. generation 120495920 120495920 100% Invested Nanjing Senhong New Energy Photovoltaic power Co. Ltd. generation 120495920 120495920 100% Invested Tumushuke Yudean Hanhai New Photovoltaic power Energy Co. Ltd. generation 324050000 324050000 100% Invested Taishan Dongrun Zhongneng New Photovoltaic power Energy Co. Ltd. generation 45063020 45063020 Asset 100% acquisition Meizhou Xingyue New Energy Photovoltaic power Co. Ltd. generation 9977500 9977500 100% Invested Guangdong Yudean Huixin Thermal Power Co. Ltd. CHP 104975000 123500000 100% Invested Guangdong Yudean Maoming Natural gas Thermal Power Co. 115345000 118345000 Ltd. CHP 85% Invested Guangdong Shaoguan Yudean Photovoltaic power New Energy Co. Ltd. generation 33473000 33473000 100% Invested Yudean Shache Integrated Energy Photovoltaic power Co. Ltd. generation 1206110470 1206110470 100% Invested Laixi Xinguangyao New Energy Photovoltaic power Co. Ltd. generation 32923000 33255555 Asset 99% acquisition Jiuzhou New Energy( Zhaoqing) Photovoltaic power Co. Ltd. generation 39000000 40680000 Asset 100% acquisition Xiangtan Xiangdian Changshan Wind Power Wind Power Generation Co. Ltd. generation 89524003 80000000 Asset 100% acquisition Yunfu Luoding Yudean New Photovoltaic power Energy Co. Ltd. generation 1844520 1844520 100% Invested (7)Relevant Situation of Significant Changes or Adjustment of the Business Product or Service in the Company’s Report Period □ Applicable √Not applicable (8)Situation of Main Customers and Main Supplier Information of the company’s top 5 sales customers 232022 Annual Report Total sales amount to top 5 customers (Yuan) 50381452707 Proportion of sales to top 5 customers in the annual sales(%) 95.67% Proportion of the sales volume to the top five customers in the 0.49% total sales to the related parties in the year Information of the company’s top 5 customers No Name Amount（RMB） Proportion 1 GPGC 49288943416 93.60% 2 State Grid Xinjiang Electric Power Co. Ltd 667525369 1.27% 3 Guangdong Yudean Environmental ProtectionCo. Ltd 259669937 0.49% 4 State Grid Hunan Electric Power Co. Ltd 108007384 0.21% 5 Yunnan Power Grid Co. Ltd. 57306600 0.11% Total -- 50381452707 95.67% Other explanation : √Applicable □Not applicable Guangdong Yudean Environmental Protection Co. Ltd. is a wholly-owned subsidiary of Guangdong Electric Power Industrial Fuel Co. Ltd. a joint venture company of the company. Therefore Guangdong Yudean Environmental Protection Co. Ltd. is related to the company.Principal suppliers Total purchase of top 5 Suppliers（Yuan） 46658788875 Percentage of total purchase of top 5 suppliers In total annual 81.78% purchase(%) Proportion of purchase amount from the top 5 suppliers in the 66.59% total purchase amount from the related parties in the year Information about the top 5 suppliers No Name Amount（Yuan） Proportion 1 Guangdong Energy Group 37994814563 66.59% China Energy Construction Group 2 Guangdong Electric Power Design & 3484742135 6.11% Research Institute Co. Ltd.Guangdong Zhujiang Investment Electric Fuel 321406727903.75% Co. Ltd. 4 Guangdong Dapeng ING Co. Ltd 1850639387 3.24% Dongfang Electric Group Dongfang Boiler 511879200002.08% Co. Ltd.Total -- 46658788875 81.78% Other explanation : √ Applicable □Not applicable Guangdong Energy Group Co. Ltd. (hereinafter referred to as "Guangdong Energy Group") is the controlling shareholder of the company and has an associated relationship with the company. The amount of related suppliers between the company and Guangdong Energy Group listed here covers all related transactions between the company and Guangdong Energy Group and its subsidiaries. 242022 Annual Report 3.Expenses In RMB Increase 2022 2021 /Decreas Notes e(%) Sale expenses 69108603 65407040 5.66% Administratio n expenses 1192506931 1101123287 8.30% Financial It is mainly caused by the increase of company investment and working expenses 2135900012 1371365945 55.75% capital demand and the expansion of debt financing scale.R & It is mainly becaused that the company and its subordinate units increase Development 1229311572 584714979 110.24% R&D investment and improve the centralized management of R&D expenses expenses. 4.R& D Expenses √ Applicable □Not applicable Name of main R&D Project Expected impact on the project Project purpose progress Goal to be achieved future development ofthe Company Form a research report on chlorine migration and transformation law and energy-saving operation Promote the safe optimization technology of stable energy-saving Research on chlorine bypass flue evaporation and low-carbon migration and system in coal-fired power Improve the safety and operation of the rotary transformation law and plant compile operation reliability of the system atomizing evaporation energy-saving guidelines of bypass flue operation and promote the In system of the high- operation optimization evaporation system and energy-saving and low-carbon operation temperature bypass technology of bypass build a calculation software economic operation of the flue and promote and flue evaporation package that can provide system. apply the obtained system in coal-fired guidance for optimal results to other similar power plant operation of bypass flue process units of the evaporation system in power company.plant and provide theoretical basis and practical experience for engineering application.According to the different operation conditions of the current ash conveying system it is estimated that Predict the dust the energy consumption of accumulation in the ash Through the comprehensive the air compressor can be hopper and the Research on intelligent study of compressed air from reduced by 20~30%. blockage of the monitoring and early production to use evaluate In Combined with advanced warehouse pump in warning technology of and analyze its energy-saving operation monitoring technology by advance find it in the ash conveying system potential so as to carry out studying the main process of early stage and deal for millions of units targeted tests and ash conveying system with it as soon as transformation.develop an intelligent early possible to avoid more warning system for ash serious consequences.accumulation in ash hopper and blockage of silo pump in ash conveying system.Development of Solve the serious blow In Solve the problem of Improve the economy erosion resistance and damage of the valve element operation frequent erosion of and safety of the unit. 252022 Annual Report temperature reduction and valve seat sealing surface desuperheating water technology for reheater of the regulating valve. regulating valve of reheater of ultra-supercritical and improve the reliability generator set of equipment.Through the Research on the demonstration and Research and demonstration and application application of MW Complete the R&D and demonstration on key of MW natural gas zero natural gas zero-carbon demonstration verification technologies of MW carbon emission power In emission power of key technologies of natural gas chemical generation technology based operation generation technology 3MWth natural gas chemical looping combustion on natural gas chemical provide an effective loop combustion device.power generation looping combustion means to achieve the technology. goal of carbon peaking and carbon neutrality.Research and Establish the model database The average annual power application of system and application Save water resources generation water intelligent monitoring platform of intelligent and reduce the Completed consumption of the whole and analysis system for monitoring and analysis production cost of the plant decreased by 5% year water saving in the system for water saving in the company.on year.whole plant whole plant.Research on diversified Determine the fuel Explore a set of diversified fuel coupling power composition and component fuel blending mode suitable Realize long-term In generation technology ratio that is reliable stable and for Yunhe Power Generation stable and safe co- operation of large circulating safe with maximum economic Co. Ltd. to reduce the fuel burning.fluidized bed boiler benefits. cost.Research and Establish a health application of key Establish a health Realize equipment health management system technologies of management system for wind In state management and life for wind power offshore wind power power operation and operation prediction. operation and operation and maintenance.maintenance.maintenance Research and Develop the unmanned Reduce the labor input application of operation mode of wharf grab Achieve full-automatic ship of ship unloading intelligent unmanned ship unloader to realize Completed unloading operation. operation and reduce driving technology for automatic ship unloading the production cost.ship unloader operation.. Remind related personnel Timely discover the to take cooling measures to Detailed application of Reduce the natural loss abnormality in temperature reduce spontaneous ambient intelligence of coal during storage oxides and sulfides caused by In combustion times of coal monitoring system in and reduce the spontaneous combustion of operation bunker; 2. Reduce the coal yard based on 5G+ emission of coal yard and give early potential safety hazard of industrial Internet atmospheric pollutants.warning in time. fire in coal conveying system. 1. Develop and apply a variety of innovative welding technologies to complete the Research and defect treatment of metal Provide reference and application of new parts; 2. Innovate and apply experience for dealing with Reduce the risk of safe processing technology post-weld heat treatment Completed the defects of important operation of the unit.for weld defects of technology for large thick- container parts in the future.drum downcomer. walled steam drum; 3.Optimize the heat treatment process and reduce the deformation of steam drum. 262022 Annual Report Company's research and development personnel situation 2022 2021 Increase /decrease Number of Research and Development persons (persons) 1333 1075 24% Proportion of Research and Development persons 15.08% 11.65% 3.43% Academic structure of R&D personnel Bachelor 961 755 27.28% Master 87 104 -16.35% Doctor 2 2 0% Age composition of R&D personnel Under 30 years old 127 84 51.19% 30-40 years old 455 371 22.64% Over 40 years old 751 620 21.13% The company's R & D investment situation 2022 2021 Increase /decrease Amount of Research and Development Investment (Yuan) 1229311572 584714979 110.24% Proportion of Research and Development Investment of Operation 2.33% 1.32% 1.01% Revenue Amount of Research and Development Investment 0 0 0% Capitalization (Yuan) Proportion of Capitalization Research and Development Investment of Research and Development 0% 0% 0% Investment Reasons and influence of significant changes in R&D personnel composition of the company □ Applicable √Not applicable The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the Business Income Year on Year □ Applicable √Not applicable Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation □ Applicable √Not applicable 5.Cash Flow In RMB Items 2022 2021 Increase/Decrease(%) Subtotal of cash inflow received from operation activities 61684580742 48934312736 26.06% Subtotal of cash outflow received from operation activities 60204715968 48812138068 23.34% Net cash flow arising from operating activities 1479864774 122174668 1111.27% Subtotal of cash inflow received from investing activities 2063345623 2047927008 0.75% Subtotal of cash outflow for investment activities 15215449730 11341567109 34.16% Net cash flow arising from investment activities - -9293640101 -41.52% 13152104107 Subtotal cash inflow received from financing activities 51212894586 39504863355 29.64% Subtotal cash outflow for financing activities 36129964664 31715363283 13.92% 272022 Annual Report Net cash flow arising from financing activities 15082929922 7789500072 93.63% Net increase in cash and cash equivalents 3410691561 -1381965670 346.80% Notes to the year-on-year change of the relevant data √Applicable □ Not applicable (1) The cash inflow from operating activities increased by 26.06% mainly due to the year-on-year increase in the on-grid tariff. (2) The cash outflow from operating activities increased by 23.34% mainly due to the increase in fuel cost caused by the increase in coal and gas prices this year. (3) The net cash flow from operating activities increased by 1112.27% year on year mainly due to the fact that the income this year increased more than the fuel cost and the net cash inflow in 2021 was 120 million which was caused by a small comparative base. (4) The cash outflow from investment activities increased by 34.16% mainly due to the year-on-year increase in fixed assets and intangible assets purchased and built by infrastructure units such as Hanhai and Yong'an and the second-phase projects such as Jinghai Bohe and Dapu. (5) The cash inflow from fund-raising activities increased by 29.64% and the net cash flow from fund-raising activities increased by 93.63% mainly due to the increase in investment and working capital demand and the expansion of debt financing this year. (6) The net increase in cash and cash equivalents increased by 346.8% mainly due to the year-on-year increase in cash flow from operating activities as well as the increasing borrowed funds.Reasons for the significant difference between the net cash flow generated by the company's operating activities during the reporting period and the net profit of this year □ Applicable √Not applicable V. Analysis of Non-core Business □Applicable √Not applicable VI. Condition of Asset and Liabilities 1.Condition of Asset Causing Significant Change In RMB End of 2022 End of 2021 Proporti on Proportion in increase Notes to the significant Amount the total /decreas change assets(%) e Monetary fund 11503523618 8.75% 8105320953 7.08% 1.67% Accounts receivable 7578636244 5.76% 7030685357 6.14% -0.38% Contract assets 4910263 0.004% 4754820 0.004% 0% Inventories 3376868100 2.57% 2998894539 2.62% -0.05% Investment real estate 365285301 0.28% 378796932 0.33% -0.05% Long-term equity 9198053183 6.99% 8074149836 7.05% -0.06% investment Fixed assets 62400175057 47.45% 57145099423 49.91% -2.46% 282022 Annual Report Construction in process 11768828161 8.95% 8710691766 7.61% 1.34% Use right assets 7352044966 5.59% 5256124979 4.59% 1.00% Short-term loans 16261444860 12.37% 12360296429 10.80% 1.57% Contract liabilities 4960974 0% 5864811 0.01% -0.01% It is mainly the expansion of debt financing scale due to Long-term borrowing 42860932628 32.59% 28940577856 25.28% 7.31% the increase of company investment and working capital demand.Lease liabilities 6870820017 5.22% 4728167142 4.13% 1.09% Overseas assets account for a relatively high proportion.□ Applicable √ Not applicable 2.Asset and Liabilities Measured by Fair Value √Applicable □ Not applicable In RMB Impair Gain/Loss on Cumulative mentprovisi Purchased Soldfair value fair value amount in amount in Other Items Opening change in the change ons in Closingamount reporting recorded into the the the chan reporti reporting reporting ges amount period equity ng period period period Financial assets Other equity 3232028682-175957628211590843820000003058071054 Instrument Investment Subtotal of financial 3232028682 -175957628 2115908438 2000000 3058071054 assets Total 3232028682 -175957628 2115908438 2000000 3058071054 Financial Liability 0 0 0 0 Other changes None 3. Restricted asset rights as of the end of this Reporting Period On December 31 2022 some subsidiaries of the Group pledged the right to charge electricity fees to the banks to obtain the long-term loans of RMB 6052250122 of which the balance of long-term loans due within one year was RMB 512741564 (as of December 31 2021: the long-term loans were RMB 6002119898 of which the balance of long-term loans due within one year was RMB 386056214). 292022 Annual Report VII. Investment situation 1. General √ Applicable □ Not applicable Investment of the period Investment of same period of last year Scale of change 8056177802454247473077.35% 2.Condition of Acquiring Significant Share Right Investment during the Report Period √Applicable □ Not applicable In RMB Whet Name of the Share Invest her to company Main Investm Investment Propo Capital Partner ment Produc Progress up to Antici Gain or Less or Date of Business ent Way Amount rtion Source Horiz t Type Balance Sheet the Current Invol pated ve in Disclosure( Disclosure Index(if any)Invested % on Date Incom Investment Laws if any) e uit November Published in Guangdong Wind 92021 China Securities Daily Securities Wind Power Power Capital 832000000 100% Self No Long- Electri c In normal August 31327934905 No Times Shanghai Securities News Generation Generatio increase Funds term Power operation 2022Co. Ltd. n Securities Daily andDecember http//.www.cninfo.com.cn.(Announceme 12022. nt No.:2021-78 2022-37 and 2022-60） Published in Guangdong Guangdong Energy Group Electri China Securities Daily SecuritiesYudean Bohe Thermal Capital Self321600000 67% Share Long-（ term cIn normal September5932120 No Times Shanghai Securities News Coal power power increase Funds Power operation 172022Proportion： Securities Daily and Co. Ltd. 33%） http//.www.cninfo.com.cn.(Announcement No.: 2022-47） Jinxiu Jinheng Yudean Jinxiu Solar New Energy New Inteligence power Self Technology Electri Not establis 2621800 90% Long- c In normal 50567 No Not applicable Energy Co. generatio Funds Co. Ltd. term Power operation applicablehmentLtd. n （ ShareProportion： 302022 Annual Report 10%） Meizhou Solar New Xingyue New power Self Long- Electri Notestablis 9977500 100% No c In normalterm operation 0 No Not applicableEnergy Co. generatio Funds Power applicablehment Ltd. n Yunfu Solar Luoding New power Self Long- ElectriYudean New establis 1844520 100% No c In normal Not term operation -408 No Not applicablegeneratio Funds applicable Energy Co. hment Power n Ltd.Qingdao Liante Laixi New Solar Xinguangyao Technology power Purchas Self Electri Not New Energy 32923000 99% Co. Ltd. Long- c In normal generatio e Funds term Power operation -15320 No Not applicable applicableTechnology （ Sharen Co. Ltd. Proportion： 1%） Maoming Guangdong Maonan Yudean Chengjian Maoming Intelligence Capital Self Electri Not Natural gas Thermalpower 115345000 85% Development Long- In normal increase Funds term c operation -21075 No Not applicableapplicable Thermal Co. Ltd. PowerPower Co. （ ShareLtd. Proportion： 15%） Published in Yudean Solar Shache New China Securities Daily Securities power 120611047 Self Electri December Intelligence establis 100% No Long- c In normal Times Shanghai Securities News generatio 0 Funds term Power operation -46915 No 12022 Energy Co. hment Securities Daily and n Ltd. http//.www.cninfo.com.cn.(Announcement No.: 2022-60） Taishan Solar Dongrun power Purchas Self Electri Zhongneng 45063020 100% No Long- c In normal Not -97554 No Not applicable generatio e Funds term New Energy Power operation applicable n Co. Ltd.Guangdong Solar New 104975000 100% Self No Long- Electri In normal -119560 No Not Not applicable 312022 Annual Report Yudean power establis Funds term c operation applicable Huixin generatio hment Power Thermal n power Co.Ltd.Nanjing Solar Linyuan power Purchas Self Electri Senhai New 120495920 100% No Long- c In normal Not -150081 No Not applicable generatio e Funds term operation applicable Energy Co. Power n Ltd.Nanjing Solar Senhong New power Purchas Self Electri Not 120495920 100% No Long- In normalterm c operation -153982 No Not applicableEnergy Co. generatio e Funds Power applicable Ltd. n Guangdong Solar Shaoguan New power Self Electri Not Yudean New establis 33473000 100% No Long- c In normal generatio Funds term Power operation -181362 No Not applicable applicable Energy Co. hment n Ltd.Guangdong Solar New Yudean Huibo power Self Electri Not establis 15492360 100% No Long- c In normal New Energy generatio Funds term Power operation -321876 No Not applicable applicable hment Co. Ltd. n Published in Tumushuke Solar Yudean New Electri China Securities Daily Securitiespower Self March Hanhai New establis 324050000 100% No Long- c In normal -384601 No Times Shanghai Securities News generatio Funds term Power operation 262022Energy Co. hment Securities Daily and n Ltd. http//.www.cninfo.com.cn.(Announcement No.: 2022-11） Xiangtan Xiangdian Wind Changshan Power Purcha Self Long- Electri Not89524003 100% No In normalterm c operation -870557 No Not applicableWind Power Generatio se Funds Power applicable Generation n Co. Ltd.Jiuzhou New Solar Purcha Self Electri Not Energy power 29819878 100% No Long- In normal se Funds term c operation -1331073 No Not applicableapplicable（Zhaoqing） generatio Power 322022 Annual Report Co. Ltd. n Published in Guangdong Yudean Capital Electri China Securities Daily SecuritiesThermal Self Long- c In normal AprilDananhai increas 156000000 100% No -2681463 No Times Shanghai Securities News power Funds term operation 222022 Smart Energy e Power Securities Daily and Co. Ltd http//.www.cninfo.com.cn.(Announcement No.: 2022-16） Guangdong Solar Capital Yudean Bijie power Self Electri increas 9500000 100% No Long- c In normal Not -7339672 No Not applicable New Energy generatio Funds term operation applicable e Power Co. Ltd. n Zhaoqing GuangdongHejiang Electric 《 Published inYudean Power Yongan Capital Electri China Securities Daily SecuritiesThermal Self Development October Natural Gas increas 180000000 90% Long- c In normal -7036717 No Times Shanghai Securities News power Funds Co. ltd. term Power operation 132020Thermal e Securities Daily and （Sharepower Co. http//.www.cninfo.com.cn.(AnnouncemeProportionLtd. ： nt No.: 2022-52） 10%） Published in Guangdong Yudean Capital China Securities Daily Securities Thermal Self Binhaiwan increas 100000000 100% No Long- Electri c In normal April-12097004 No Times Shanghai Securities News power Funds term operation 112020 Energy Co. e Power Securities Daily and Ltd. http//.www.cninfo.com.cn.(Announcement No.: 2020-13） Huizhou Dayawan Petrochemical Guangdong Investment Published in Yudean Group Co. Ltd Capital China Securities Daily SecuritiesDananhai Thermal Self （ Shareincreas 84729500 70% Long- Electri c In normal July-9483850 No Times Shanghai Securities News Intelligence power Funds Proportion： term Power operation 172021e Securities Daily andEnergy Co. 20%）， http//.www.cninfo.com.cn.(AnnouncemeLtd. Huizhou Port nt No.: 2021-43） Investment Group Co. Ltd.（ Share 332022 Annual Report Proportion： 10%） Guangdong Yudean Capital Thermal Self Electri Qiming increas 18000000 100% No Long- c In normal Not term operation -14732505 No Not applicablepower Funds Power applicableEnergy Co. e Ltd.Yunfu Yunda Published in Guangdong Investment Yudean Yunhe Capital Thermal Self Holdings Co. Long- Electri China Securities Daily Securities c In normal OctoberPower increas 785236675 90% term operation -189268096 No Times Shanghai Securities Newspower Funds Ltd.（ Share Power 82021Generation e Securities Daily andProportion： Co. Ltd. http//.www.cninfo.com.cn.(Announceme 10%） nt No.: 2021-64） Published in Guangdong Yudean Dapu Capital China Securities Daily Securities Thermal Self Power increas 867100000 100% No Long- Electri c In normal September-348122830 No Times Shanghai Securities News power Funds term operation 172022 Generation e Power Securities Daily and Co. Ltd. http//.www.cninfo.com.cn.(Announcement No.: 2022-47） Guangdong Qichuang Investment Development Co. Ltd. Published in Guangdong （ ShareYudean Capital China Securities Daily Securities Thermal Self Proportion Electri： September Jinghai Power increas 520000000 65% Long- c In normal -228346057 No Times Shanghai Securities Newspower Funds 25%）， term Power operation 172022Generation e Securities Daily andGuangzhou Co. Ltd. http//.www.cninfo.com.cn.(AnnouncemeDevelopment nt No.: 2022-47） Power Group （ ShareProportion： 10%） Guangdong China Huaneng Published in Yuehua Power Thermal Purcha Self Group Share Electri October522234384 51% （ Long-term cIn normal China Securities Daily Securities Generation power se Funds Proportion： Power operation -185022315 No 82021 Times Shanghai Securities NewsCo. Ltd. 49%） Securities Daily and 342022 Annual Report http//.www.cninfo.com.cn.(Announcement No.:2021-64 2022-01） Published in Guangdong Energy Group China Securities Daily Securities Guangdong Thermal Purcha Self Electri October1275565852 51% （ Share Long- c In normalterm operation -466057894 NoTimes Shanghai Securities News Shajiao (C) power se Funds 82021 Proportion： Power Securities Daily and 49%） http//.www.cninfo.com.cn.(Announcement No.:2021-64） Power Guangdong Shanxi generatio Electri Capital Energy Group Yudean n and coal Self city Notincreas 130000000 40% Share Long- In normal（ term operation 526175689 No Not applicableEnergy Co. mine Funds and applicablee Proportion Ltd. developm ： coal 60%ent ） Guangdong Hydropower Xinjiang Facility New Equipment Yuejian New Self Not manufact establis 2000000 10% Group Co. Ltd Long- Metal In normalterm operation 0 No Not applicableEnergy Co. Funds applicableuring hment （ ShareLtd.Proportion： 90%） Total -- -- 8056177802 -- -- -- -- -- -- 0 -613789486 -- -- -- 3.Situation of the Significant Non-equity Investment Undergoing in the Report Period □ Applicable √ Not applicable 4.Investment of Financial Asset （1）Securities investment √ Applicable □Not applicable In RMB Mode of Book value Purchas Sale Book value Security Security Stock Initial accountin balance at the Changes in fair value of Cumulative fair e amount amount Gain/los s of the balance at the Accounting category code Abbreviati investment g beginning ofon: cost measurem the reporting the this value changes in in the end of the Source of the shares period equity in the this this reporting items ent period period period reporting period period 352022 Annual Report Domestic and Other equity foreign stocks 000027 Shenzhen Energy 15890628 FVM 122472000 -26308800 80272572 0 0 0 96163200 instrument Self fundsInvestment Domestic and Other equity foreign stocks 600642 Shenergy - 235837988 FVM 409272682 69034064 0 0 0 304872052 instrument Self funds 104400630 Investment Domestic and Other equity foreign stocks 831039 NEEQ 3600000 FVM 15984000 -7452000 4932000 0 0 0 8532000 instrument Self fundsInvestment Domestic and Sunshine Other equity HK6963 356000000 FVM 1653500000 42203802 1339703802 0 0 0 1695703802 instrument Self funds foreign stocks insurance Investment Total 611328616 -- 2201228682 -95957628 1493942438 0 0 0 2105271054 -- -- 362022 Annual Report （2）Investment in Derivatives □ Applicable √ Not applicable The company had no investment in derivatives in the reporting period. 5.Application of the raised capital □ Applicable √ Not applicable The company had no application of the raised capital in the reporting period.VIII. Sales of major assets and equity 1.Situation of Significant Asset Sale □ Applicable √ Not applicable None 2.Sales of major equity □ Applicable √ Not applicable 2.Sales of major equity □ Applicable √ Not applicable IX. Analysis of the Main Share Holding Companies and Share Participating Companies √ Applicable □ Not applicable Situation of Main Subsidiaries and the Joint-stock company with over 10% net profit influencing to the company In RMB Company Company Sectors Registered Name type engaged in capital Total assets Net assets Turnover Operating profit Net Profit Power Guangqian generation Electric Power Subsidiary and power 1030292500 2323945514 2120392943 1855652467 645563626 483783920 Company station construction Power Wind Power generation Generation Subsidiary and power 2801252900 36506474756 8391187503 2657392548 478241449 378955775 Company station construction Power Huizhou generation Natural Gas Subsidiary and power 1499347500 3247488299 2105862677 3250426792 257801418 206626438 Company station construction Power Pinghai Power generation Generation Subsidiary and power 1370000000 4500781512 1829701460 5210093742 -14169597 116092947 Company station construction Bohe Energy Power Company Subsidiary generation 6200891390 9344286527 4623477504 4246193380 15973641 8853910 and power 372022 Annual Report station construction Power Zhanjiang generation Electric Power Subsidiary and power 2875440000 3711371535 3388420159 2527747682 -352327595 -316547774 Company station construction Power Red Bay Power generation Generation Subsidiary and power 2749750000 6265611224 2393430116 5565503172 -383893013 -327351941 Company station construction Power Dapu Power generation Genration Subsidiary and power 1907100000 4788048351 865887191 2490196938 -424015354 -348122830 Company station construction Power Jinghai Power generation Generation Co. Subsidiary and power 2919272000 8376697495 2631645005 6996344270 -439776070 -351301626 Ltd. station construction Power Yuehua Power generation Genration Subsidiary and power 1004714000 3510282504 573181347 1339461805 -391222030 -363681512 Company station construction Power Maoming generation Thermal power Subsidiary and power 1437985100 2654286406 286671144 2288380934 -474361478 -527375955 Plant station construction Power Zhongyue generation Energy Subsidiary and power 1454300000 3337678505 -215919541 1826121216 -619516888 -708545498 Company station construction Shaoguan Power Power generationSubsidiary and power 1070000000 5177449723 -1091061040 2820816898 -844059353 -922264795 Generation station Company construction Power Shajiao C generationSubsidiary and power 2500000000 5846009096 2039262655 5330603384 -830059486 -913839007 Company station construction Investment in electric Shanxi Yudean power Shareing Energy Co. mining new 1620749000 10010740679 7706474053 193310933 1320834464 1319342256 Company Ltd. energy and other projects Acquirement and disposal of subsidiaries in the Reporting period √ Applicable □ Not applicable Company name Way of acquiring and Impact on the whole producing operation and performance 382022 Annual Report disposing of subsidiary corporations within the reporting period During the reporting period the photovoltaic project in the Guangdong Shaoguan Yudean New Invested plant is in the preliminary stage and construction has not Energy Co. Ltd. started; the distributed PV project in Wushi Town is under construction.Tumushuke Yudean Hanhai New Invested During the reporting period the project was in the process Energy Co. Ltd. of infrastructure construction.Yudean Jinxiu Intelligence Energy Invested During the reporting period the project was in the processCo. Ltd. of infrastructure construction.During the reporting period the project was in the process Nanjing Senhong New Energy Co. Ltd. Purchase of infrastructure construction.Nanjing Linyuan Senhai New Energy During the reporting period the project was in the process Purchase Co. Ltd. of infrastructure construction.Guangdong Yudean Huibo New Energy During the reporting period the project was in the process Invested Co. Ltd. of infrastructure construction.Taishan Dongrun Zhongneng New During the reporting period the project was in the process Purchase Energy Co. Ltd. of infrastructure construction.Guangdong Yudean Maoming Natural During the reporting period this project was in the Invested Gas Thermal power Co. Ltd. preliminary stage and the construction was not commenced.During the reporting period the project was in the process Meizhou Xingyue New Energy Co. Ltd. Invested of infrastructure construction.Guangdong Yudean Huixin Thermal During the reporting period this project was in the Invested power Co. Ltd. preliminary stage and the construction was not commenced.Yudean Shache Intelligence Energy During the reporting period the project was in the process Co. Ltd. Invested of infrastructure construction.Laixi Xinguangyao New Energy During the reporting period the project was in the process Purchase Technology Co. Ltd. of infrastructure construction.During the reporting period the project achieved an Jiuzhou New Energy Zhaoqing Co. operating income of 7.27 million yuan and a net profit of -（ ） Purchase 1.33 million yuan which had no significant impact on the Ltd. company's overall production and operation and performance.During the reporting period the project achieved an Xiangtan Xiangdian Changshan Wind operating income of 2.7 million yuan and a net profit of - Purchase 870000 yuan which had no significant impact on the Power Generation Co. Ltd. company's overall production and operation and performance.Yunfu Luoding Yudean New Energy During the reporting period this project was in the Invested Co. Ltd. preliminary stage and the construction was not commenced.Note 1. During the reporting period due to the high price of coal and gas the company's power generation cost remained high and some thermal power plants continued deficit. 2. In 2022 due to the commissioning of Yangjiang Xinliao Wailuo and other projects the wind power revenue increased year on year. 3. Mainly because the coal price remained high this year and the investment income in Shanxi energy increased year on year.X．Structured vehicle controlled by the Company □ Applicable √ Not applicable 392022 Annual Report XI. Prospect for future development of the Company （I）The Development Trend of the Industry In January 2023 the Blue Book of New Power System Development (Draft for Comment) issued by the National Energy Administration pointed out that China would promote new energy as the main resource for incremental power generation. By 2030 the installed capacity will account for more than 40% and the power generation will account for more than 20%. However China's coal-based energy resource endowment determines that coal will still occupy a high proportion in the energy supply structure for a long time. As one of the clean and efficient utilization ways of coal coal-fired power is still the basic guarantee power supply in the power system.Therefore before 2030 the installed capacity and power generation of coal-fired power will still increase moderately and the layout will be optimized around the large-scale new energy base main load center and important nodes of the power grid. Coal-fired generating units gradually transform into the clean and low-carbon type through flexibility transformation and energy-saving and emission-reduction transformation which further enhances the regulation ability better support the "carbon peaking and carbon neutrality" strategy and the stable operation of the power system. Meanwhile the clean and efficient gas generator set is conducive to enhancing the peak-shaving capacity and safety reliability of the new power system with new energy as the main body and to building a clean low-carbon safe and efficient energy system with certain development space. To sum up in the future the thermal power industry will mainly rely on developing coal power with large capacity high parameters advanced energy-saving and accelerating the development of gas power to optimize the power supply structure promote the quality improvement and efficiency increase by enhancing the technical R&D strength strive for high electricity quantity and price by active marketing and reduce the cost by refined management. In addition the company will adhere to the new development concept continue to promote the optimization and adjustment of power supply structure actively steadily and orderly promote the completion and commissioning of new energy power generation projects and contribute to building a clean low-carbon safe and efficient energy system.(II) Corporate development strategy In the future it will focus on energy production and supply with consideration of comprehensive energy services centered by the goals of carbon peaking and carbon neutralization. Based on Guangdong and targeted at the whole country it will implement the "1+2+3+X" strategy- to build a first-class green low-carbon power listed company coordinate safety and development optimize and strengthen the coal power gas power and biomass power generation business and vigorously develop new energy energy storage hydrogen energy and land park development. It will fully promote the leap-forward development of new energy; Grasp the window phase of thermal power development and accelerate the development and construction of key projects; Explore the distribution of multi-energy joint supply project of "integration of source network load and storage" promote the integrated development of "integration of wind light and fire hydrogen storage" and build an ecological and civilized power generation enterprise.(III) Production and operation plans In 2023 the company's consolidated statement has a budget target value of 120.356 billion kilowatt hours of on- grid electricity which is 11.77% higher than the actual on-grid power in 2022; The budgetary target value of the main business revenue is RMB 61.287 billion and an increase of 9.071 billion yuan compared to the actual amount of main business operating revenue of RMB 52.216 billion; The annual planned investment budget of the parent company is RMB 6.275 billion with a decrease of RMB 1.781 billion compared with the actual investment of RMB 8.056 billion in 2022. 402022 Annual Report (Note: The above operating plan does not represent the company's profit forecast for 2023 whether it can be achieved depending on various factors such as changes in the electricity market and coal market conditions thus there is considerable uncertainty and investors should pay special attention to it.)（IV）Possible risks and countermeasures 1. Safety production risks The increasingly frequent occurrence of extreme weather events has brought certain adverse effects to the normal production and operation of enterprises and the company needs to further strengthen the defense work against natural disasters; Due to the long running years of some of the company's thermal power units there are problems such as reduced efficiency level aging equipment and decline in operation safety and reliability; In addition some contractors may have insufficient safety awareness and safety management may not in place.Countermeasures: First pay close attention to rain and flood conditions and do well in flood prevention and typhoon prevention in a strict and down-to-earth manner; The second is to strengthen equipment maintenance and operation management seriously carry out maintenance work operation management and technical supervision improve the equipment management system do well in equipment defect elimination and improve the reliability of unit equipment; The third is to strictly manage contractors well managethe "threshold" resolutely root out illegal subcontracting and illegal subcontracting encourage the evaluation activity of outstanding contractors strengthen the safety education and training of contractors and continuously improve the safety management of contractors. 2. Fuel cost risk Domestic coal production capacity continues to be released under the policy of ensuring supply and stable price but seasonal and regional supply and demand tensions still exist and coal prices remain high. At the same time due to the intensification of geopolitical gaming in the international energy market global coal and natural gas supply expectations are unclear and the future trend of overseas fuel prices is increasingly uncertain. Fuel costs account for a large proportion of the company's main business costs and fluctuations in fuel prices have a significant impact on the company's operating performance. If fuel prices remain high the company's operating efficiency will continue to be under serious pressure.Countermeasures: First the company shall optimize the fuel procurement reduce costs through the "precision inventory" strategy increase the mixing of economic coal optimize the energy consumption of units etc.; The second is to broaden coal procurement channels comprehensively consider domestic trade coal and imported coal such as Russian coal Australian coal and Mongolian coal according to the guidance of national policies adhere to that the procurement principle of economic efficiency is first and reduce fuel costs; The third is to track the price trend of natural gas in real time optimize the power generation business strategy generate more cost-effective electricity and actively seek subsidies for gas and electricity from superior departments strengthen safety production management and cost control and strive to achieve a stable supply of gas and electricity. 3. Risk of power supply structure adjustment Under the background of the "30*60" goal of carbon peaking and carbon neutrality the transition to low-carbon energy production and consumption has been accelerated. According to the requirements of the state to optimize the energy structure the thermal power will gradually change from the main power supply to the basic power 412022 Annual Report supply of peak regulation and frequency regulation and the installed capacity and power growth of new energy such as wind power and photovoltaic power will further squeeze the living space of coal-fired power units. As of the end of December 2022 the company's holding capacity of coal power accounts for 69.2% that is a relatively high proportion and the pressure of transformation of power to clean and low-carbon energyishigh.Countermeasures: The first is to steadily promote the transformation and upgrading of the power supply structure strive to achieve greater breakthroughs in structural adjustment accelerate the progress of key energy projects and solidly promote the Daya Bay Integrated Energy Station Zhaoqing Yongan Natural Gas Thermal Power Project Xinjiang Hanhai Photovoltaic Project and Yunfu Natural Gas Cogeneration Project Yangjiang Qingzhou offshore wind power project etc. to ensure that project investment and construction plans are completed on schedule. The second is to continue to enrich the reserve of new energy projects actively explore new energy development space in other provinces and regions in China and increase the development of new energy in Xinjiang Guizhou Hebei Qinghai Guangxi and other regions. The third is to deeply explore the distributed energy supply of cold heat electricity and gas as well as the construction of infrastructure such as power exchange charging piles and energy storage and the development and utilization of hydrogen energy. The fourth is to continuously optimize carbon asset management make full use of internal and external resources strengthen carbon emission data management and carbon asset management promote energy conservation and carbon reduction and realize the value-added and income of carbon assets.XII.Particulars about researches visits and interviews received in this reporting period √ Applicable □Not applicable Way Reception Place of of Types of Main contents time reception recept visitors Visitors received discussed and Basic index ion information provided Zhongjin Company Senjin Investment For details please refer to Please refer to the Lingze Investment the "Record Form of Investor investor activity Meeting Huamei Investment Relations Activities of Field record form for details February room of Organiza Zhengxigu Capital Guangdong Electric Power resear of the discussion. No 172022 the tion Huachuang Development Co. ch information is company Securities Guangfa Ltd."disclosed by the provided by the Fund Ruitian interactive platform company Investment Guotai （2022001） Fund Industrial Securities Maxwealth For details please refer to FundFuguo Fund Please refer to the the "Record Form of Investor Taiping Asset investor activity Relations Activities of Shenwan Hongyuan record form for details March Online Organiza Guangdong Electric Power Other Securities Bank of of the discussion. No 212022 research tion Development Co. China Investment information is Ltd."disclosed by the Management provided by the interactive platform Yangtze River company （2022002） endowment insurance Industrial Please refer to the For details please refer to Online Organiza SecuritiesYinhua investor activity the "Record Form of Investor May 52022 Other research tion Fund Southern record form for details Relations Activities of fund Jinglin Asset of the discussion. No Guangdong Electric Power 422022 Annual Report CCB Principal information is Development Co.Asset Management provided by the Ltd."disclosed by the Xincheng company interactive platform FundBoshi Fund （2022003） For details please refer to Investors who Please refer to the the "Record Form of Investor participated in the investor activity Relations Activities of The Company's record form for details May Guangdong Electric Power panorami Other Other performance of the discussion. No 132022 Development Co. c network briefing through the information is Ltd."disclosed by the panoramic network provided by the interactive platform platform company （2022004） For details please refer to Please refer to the the "Record Form of Investor investor activity Relations Activities of record form for details May Online Organiza Guangdong Electric Power Other Huatai Asset of the discussion. No 232022 research tion Development Co. information is Ltd."disclosed by the provided by the interactive platform company （2022005） For details please refer to Please refer to the the "Record Form of Investor investor activity Relations Activities of Industrial Securities record form for details May Online Organiza Guangdong Electric Power Other (HSBC Global of the discussion. No 242022 research tion Development Co. AssetManagement information is Ltd."disclosed by the provided by the interactive platform company （2022006） For details please refer to Please refer to the the "Record Form of Investor investor activity Relations Activities of Industrial record form for details June Online Organiza Guangdong Electric Power Other SecuritiesZhongron of the discussion. No 212022 research tion Development Co. g Fund information is Ltd."disclosed by the provided by the interactive platform company （2022007） For details please refer to Please refer to the the "Record Form of Investor investor activity Meeting Zhengyuan Relations Activities of Field record form for details June room of Organiza Investment Guangdong Electric Power resear of the discussion. No 302022 the tion Huachuang Development Co. ch information is company Securities Ltd."disclosed by the provided by the interactive platform company （2022008） For details please refer to Please refer to the the "Record Form of Investor Dongbei Securities investor activity Relations Activities of Southern fund record form for details July Online Organiza Guangdong Electric Power Other Changjiang of the discussion. No 222022 research tion Development Co. Securities BOCOM information is Ltd."disclosed by the Schroders provided by the interactive platform company （2022009） Please refer to the For details please refer to Meeting Field Bongbei Securities investor activity the "Record Form of Investor July room of Organiza resear Boshi Fund Huatai record form for details Relations Activities of 262022 the tion ch Securities of the discussion. No Guangdong Electric Power company information is Development Co. 432022 Annual Report provided by the Ltd."disclosed by the company interactive platform （2022010） For details please refer to Please refer to the the "Record Form of Investor investor activity Relations Activities of Caitong Fund record form for details September Online Organiza Guangdong Electric Power Other GuotaiJunan of the discussion. No 22022 research tion Development Co. Securities information is Ltd."disclosed by the provided by the interactive platform company （2022011） For details please refer to Investors who Please refer to the the "Record Form of Investor participated in the investor activity Relations Activities of The company's record form for details September Guangdong Electric Power panorami Other Other performance of the discussion. No 222022 Development Co. c network briefing through the information is Ltd."disclosed by the panoramic network provided by the interactive platform platform company （2022012） Jiashi Fund Guotai For details please refer to JunanCITIC Please refer to the the "Record Form of Investor Securities investor activity Meeting Relations Activities of Wangfang Asset record form for details September room of Organiza Guangdong Electric Power Other Invesco Great of the discussion. No 232022 the tion Development Co. wallZhengyuan information is company Ltd."disclosed by the Investment Luojia provided by the interactive platform Fangyuan company （2022013） Tianchuang Capital Yinhua Fund Penghua Fund CS Richland Asset For details please refer to Please refer to the Jinglin Asset Xitai the "Record Form of Investor investor activity Meeting Investment Relations Activities of record form for details September room of Organiza Industrial Securities Guangdong Electric Power Other of the discussion. No 282022 the tion Guangfa Development Co. information is company SecuritiesAXA Ltd."disclosed by the provided by the SPDB Investment interactive platform company Managers UBS （2022014） SDIC Anxin Fund Guoxin Securities For details please refer to Please refer to the the "Record Form of Investor investor activity Relations Activities of Guoxin Securities record form for details October Online Organiza Guangdong Electric Power Other Caitong Fund of the discussion. No 312022 research tion Development Co. Fuguo Fund information is Ltd."disclosed by the provided by the interactive platform company （2022015） For details please refer to Invesco Great Please refer to the the "Record Form of Investor wallDongbei investor activity Relations Activities of Securities Great record form for details November Online Organiza Guangdong Electric Power Other Wall Fund TF of the discussion. No 112022 research tion Development Co. Securities CITIC information is Ltd."disclosed by the AMC Huachuang provided by the interactive platform Securities company （2022016） November Online Other Organiza Industrial Please refer to the For details please refer to 442022 Annual Report 232022 research tion SecuritiesCCB investor activity the "Record Form of Investor Principal Asset record form for details Relations Activities of management of the discussion. No Guangdong Electric Power Guangfa information is Development Co.FundCINDA provided by the Ltd."disclosed by the FUND Anxin company interactive platform Securities Penghua （2022017） Fund MIRAE Asset For details please refer to Guoxin Securities Please refer to the the "Record Form of Investor Zhonggeng Fund investor activity Relations Activities of Yangtze River record form for details November Online Organiza Guangdong Electric Power Other endowment of the discussion. No 282022 research tion Development Co. insuranceHuaan information is Ltd."disclosed by the Fund Zhongjia provided by the interactive platform Fund company （2022018） For details please refer to Please refer to the the "Record Form of Investor investor activity Relations Activities of record form for details November Online Organiza Guangdong Electric Power Other Guangfa Securities of the discussion. No 302022 research tion Development Co. information is Ltd."disclosed by the provided by the interactive platform company （2022019） For details please refer to Please refer to the the "Record Form of Investor investor activity Relations Activities of record form for details December Online Organiza Shenwan Hongyuan Guangdong Electric Power Other of the discussion. No 72022 research tion Securities Development Co. information is Ltd."disclosed by the provided by the interactive platform company （2022020） For details please refer to Please refer to the the "Record Form of Investor investor activity Relations Activities of MAXWEALTH record form for details December Online Organiza Guangdong Electric Power Other Fund Guangfa of the discussion. No 202022 research tion Development Co. Securities information is Ltd."disclosed by the provided by the interactive platform company （2022021） 452022 Annual Report IV. Corporate Governance I. General situation The company is strictly in accordance with “Company Law” “Securities Law” “Governance Standards of ListedCompany” “Listing Rules of Stocks” and other laws and regulations requirements constantly perfects the corporate governance structure standardizes corporate operations and further enhances the level of corporate governance. The company has established the corporate “Articles of Association” the rules of procedure of three meetings’ operation the working rules of the board of directors special committee the working rules of the general manager of company and working conditions and internal control system which basically covers all aspects of the operation management like financial management investment management information disclosure associated trade external guarantees and fund-raising. These systems are implemented better. During the reporting period the company has amended part of the clauses in “Inside Information Management System” based on the original systems and the requirements of the CSRC.In 2022 the company continue implement the Guidelines for Corporate Governance of Listed Companies and the relevant requirements of China Securities Regulatory Commission on improving the quality of listed companies and earnestly achieved a steady and prudent management abided by laws and regulations highlighted and refined its main business respected investors and constantly improved the corporate governance level and the development quality of listed companies. The Board of Directors organized 6 on-site meetings and 5 communication meetings and completed the examination and approval of 65 proposals of the Board of Directors including regular reports internal control evaluation comprehensive risk management profit distribution plan major investment and financing major related party transactions etc. all of which were passed and effectively implemented. The Board of Directors also convened 4 general meeting of shareholders and all 19 proposals submitted at the general meeting of shareholders were passed and effectively implemented. The company successfully completed the preparation and disclosure of regular reports and temporary announcements and issued 104 announcements throughout the year. The information disclosure has been assessed as "A" by Shenzhen Stock Exchange for eight consecutive years.Does there exist any difference in compliance with the corporate governance the PRC Company Law and the relevant provisions of CSRC □ Yes √ No There exist no difference in compliance with the corporate governance the PRC Company Law and the relevant provisions of CSRC.II. Independence and Completeness in business personnel assets organization and finance The company has implemented separation of operation separation of human resource separation of assets separat ion of organization and financial independence between controlling shareholder. And it has a complete business and operations management ability. 1. Separation of operation: the company is principally engaged in the electricity generation and sales to Guangdong Electric Power Holding Co.(“GPHC”) or customers directly. The company has subcontracted the subsidiary of Yudean the holding company to purchase the fuels which is solely for the purpose of better utilization of large-scale purchase and cost control. 2. Separation of human resource: the General Manager and all his subordinates Secretary to the Board of Directors Financial Manager are paid by the company and take no position in the holding company. 3. Separation of assets: the company has independent production system supporting system and other facilities. The company owns its intangible assets such as 462022 Annual Report intellectual property rights trademarks and non-patent technology; 4. Separation of organization: the company has established integrated operating institution of its own.5.. Financial independence: the company has an independent financial department and has established independent accounting system and financial management system. It opened independent bank accounts for its own operation.III. Competition situations of the industry √Applicable □ Not Applicable Types of Name of the Property ofProblem relationship Controlling the Time Schedule of WorksTypes with listed Shareholders Controlling Problems and Causes Countermeasures and Follow-up Program companies Shareholders Energy Group was On January 3 2018 Our company will actively established when the company fulfill the trusteeship and Guangdong disclosed responsibilities accordingProvincial Announcement on to the “Equity CustodyGovernment took Controlling Agreement” and the lead in the Shareholders' participate in the implementation of Commitment to management andthe “plant and Perform Related decision-making andnetwork separation” Matters (public inspection and supervision power system notice No.: 2018- of the custody target. The reform in China 01); on January 13 company will cooperate and was separated 2018 the company with Energy Group to and formed from disclosed push forward the defect Guangdong Announcement of rectification of the Provincial Power Related underlying assets study Group Corporation. Transactions on the the rectification and It is the largest and "Equity Custody solution to the defects and most powerful Agreement" signed obstacles in the relevant power generation with Guangdong assets that do not meet the enterprise in Energy Group Co. listing conditions Guangdong Ltd. (public notice promote relevant Province. Yudean No.: 2018-04). In rectification work from Power is the only order to avoid the aspects of improving Horizontal Controlling Guangdong Local listed company competition in the project approval orcompetitio shareholder Energy Group SASAC under the Energy same industry and to approval proceduresns Co. Ltd. Group and is fulfill the relevant clarifying land and engaged in power horizontal property ownership production competition enhancing asset business. At commitments profitability and present Energy Energy Group has implementing legal Group still has signed the Entrusted compliance. For custody some remaining Management assets that meet the listing power generation Agreement with the conditions in the future assets that have not company and all the Energy Group will in been included in shareholders' rights accordance with the Yudean Power other than the unified deployment of the temporarily. ownership income Guangdong Provincial Considering the and disposal rights Party Committee and the situation of these of the company that provincial government power generation temporarily fails to and the overall assets it is meet the listing requirements for the temporarily not in conditions in the reform of state-owned line with the listing company's custody enterprises actively create conditions and it is area of the Energy conditions for the difficult to solve Group are escrowed injection into listed these problems in to our company. companies in accordance the short term. with the status of the Therefore there is a assets under custody certain degree of combined with enterprise 472022 Annual Report horizontal restructuring structural competition. adjustment arrangements electricity market and capital market conditions.IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period 1.Annual General Meeting Sessions Type Investorparticipation ratio Meeting Date Disclosure date Disclosure index《Announcement of Resolution ofThe first the first Provisional shareholders’ provisional Provisional general meeting in 2022， shareholders’ shareholders’General 72.75% February 222022 February 232022 Announcement No.:2022-10General Meeting Published in China Securitiesmeeting in 2022 Daily Securities Times and http//.www.cninfo.com.cn Announcement of Resolution of 2021 shareholders’ general 2021 Annual Shareholders’ General meeting，Announcement72.68% May 202022 May 212022general meeting Meeting No.:2022-29. Published in China Securities Daily Securities Times and http//.www.cninfo.com.cn Announcement of Resolution of The Second the Second Provisional provisional Provisional shareholders’ general meeting in shareholders’ shareholders’ 73.29% September 162022 September 172022 2022，Announcement No.:2022- General General meeting in 2022 Meeting 46 Published in China Securities Daily Securities Times and http//.www.cninfo.com.cn Announcement of Resolution of The Third the Third Provisional provisional Provisional shareholders’ general meeting in shareholders’ shareholders’General 74.29% November 162022 November 172022 2022，Announcement No.:2022-General Meeting 57 Published in China Securitiesmeeting in 2022 Daily Securities Times and http//.www.cninfo.com.cn 2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore □ Applicable √Not applicable V. Information about Directors Supervisors and Senior Executives 1.Basic situation Shares Amount Amount Number held at of shares of shares Other of shares Reasons Office Starting Expiry date the increased decreased held at for Name Positions changstatus Sex Age date of of tenure year- at the at the es(sha the end increase tenure begin(s reporting reporting of the or hare) period(sh period(sh res) period(sh decrease are) are) ares) of shares Wang Jin Board In June February chairman office Male 59 112018 202023 Zheng Vice Yunpeng Board In Male June54 chairman office 282018 Zheng General In Male 54 June 482022 Annual Report Yunpeng Manager office 112018 Li Fangji Director Inoffice Male June 55 282018 In Femal May March Li Xiaoqing Director 51 office e 202022 162023 Li Baobing Director Inoffice Male November 48 192019 Employee August Chen Yanzhi In Male 47 director office 22021 Mao Qinghan Director In Male Augustoffice 48 22019 Ma Xiaoqian Independe In Septembernt director office Male 58 182017 Zhang Hanyu Independe In Femal September nt director office 57e 162022 September Wu Zhanchi Independe Innt director office Male 47 162022 Independe In SeptemberCai Guowei nt director office Male 43 162022 Chairman of the Zhou Zhijian Superviso In Male Augustry office 50 22021 Committe e Li Ruiming Employee In Augustsupervisor office Male 59 22021 Shi Yan Superviso In Femal Novemberr office e 45 192019 Li Qing Employee In Maysupervisor office Male 45 202014 Sha Qilin Independe In Male Augustnt director office 62 22021 Guo Deputy In April Yongxiong GM office Male 48 272021 Deputy Liu Wei GM In Male SeptemberFinance office 43 182017 manager Liu Wei Board In Male Octobersecretary office 43 242006 Shen Independe Dimissi Femal May September55 Hongtao nt director on e 202016 162022 Independe Dimissi May SeptemberWang Xi on Male 52nt director 202016 162022 Independe Dimissi September SeptemberYin Zhongyu on Male 53nt director 182017 162022 Tang Deputy Dimissi November DecemberMale 60 Yongguang GM on 282019 312022 Total -- -- -- -- -- -- 0 0 0 0 0 -- Indicate whether any director supervisor or senior management resigned before the expiry of their tenure during the Reporting Period √Yes □ No 492022 Annual Report 1. Due to the expiration of their terms of office and personal reasons the independent directors of the company- Ms. Shen Hongtao Mr. Wang Xi and Mr. Yin Zhongyu-submitted resignation applications to the board of directors respectively; 2. Because having reached the statutory retirement age Mr. Tang Yongguang will no longer serve as the deputy general manager of the company and will no longer hold any position in the company and its subsidiaries after leaving his post.Changes of directors supervisors and senior executives √ Applicable □ Not applicable Name Positions Types Date Reason Li Xiaoqing Director Elected May 202022 Zhang Hanyu Independent director Elected September 162022 Wu Zhanchi Independent director Elected September 162022 Cai Guowei Independent director Elected September 162022 Shen Hongtao Independent director Left for term expiration September 162022 Wang Xi Independent director Left for term expiration September 162022 Yin Zhongyu Independent director Dimission September 162022 Personal reasons Tang Yongguang Deputy GM Dimission December 312022 Retire Wang Jin Board chairman Dimission February 202023 Work Adjustment Zheng Yunpeng Board chairman Elected February 202023 Li Xiaoqing Director Dimission March 162023 Personal reasons 2.Posts holding Work Experience in the past five years of Directors supervisors and senior Executives in Current office Mr. Wang Jin born in May 1963. He holds a Bachelor of Engineering from Nanjing Institute of Technology and a Master of Business Administration from Jinan University. He is now a senior engineerand currently serves as Full-time external directors of Guangdong Wind Power Generation Co. Ltd. Guangdong Energy Group Science and Technology Research Institute Co. Ltd and Shanxi Yuedian Energy Co. Ltd. He once served as director of boiler maintenance workshop in Shaoguan Power Plant director of Engineering Technology Department of Zhuhai Power Plant’s Planning and Construction Department deputy director of Zhuhai Power Plant executive deputy general manager of Guangzhu Power Generation Co. Ltd. and general manager of Zhuhai Power Plant Co. Ltd. general manager and secretary of the Party Committee of Guangdong Zhuhai Jinwan Power Generation Co. Ltd. general manager of Guangzhu Power Generation Co. Ltd. the deputy chief engineer and the manager of the Department of Management and the secretary of the Party Branch of Guangdong Energy Group Co. Ltd. and Deputy Chief Engineer of Guangdong Energy Group Co. Ltd. Secretary of the Party Committee and Chairman of Guangdong Electric Power Development Co. Ltd.Mr. Zheng Yunpeng born in October 1968 Bachelor of South China University of Technology and MBA of Jinan University is a senior engineer. Currently he serves as chairman and the general manager of Guangdong Electric Power Development Co. Ltd. He had served as Deputy Minister of Strategy Development Department of Guangdong Yudean Asset Management Co. Ltd. Deputy Minister of Strategy Development Department of Guangdong Energy Group Co. Ltd. Minister of Strategy Development Department of Guangdong Energy Group Co. Ltd. Secretary of the Party Branch and General Manager of Branch company of Guangdong Yudean Environmental Protection Engineering Management company Factory Director and Secretary of the Party 502022 Annual Report Committee of Huangpu Power Plant General Manager of Yuehua Power Generation company General Manager and Secretary of the Party Branch of Guangdong Yudean Natural Gas Co. Ltd.Mr. Li Fangji born in November 1967 is a senior engineer. He holds a bachelor degree from Beijing Institute of Water Resources and Electric Power Economics and Management and a master degree in engineering from Tianjin University. He currently serves as Deputy Chief Engineer of Guangdong Energy Group Co. Ltd. and concurrently serves as Minister of Strategy Development Department and Secretary of Party Branch of Energy Group Corporation Director of Guangdong Electric Power Development Co. Ltd. He had served as Engineer of Shenzhen Energy Corporation Assistant to General Manager and Deputy General Manager of Shenzhen Qianwan Electric Power Development Co. Ltd. Assistant to General Manager Chairman of the Labor Union Deputy General Manager General Manager and Secretary of the Party Committee of Shenzhen Guangqian Electric Power Co. Ltd. Secretary of Party Committee and General Manager of Guangdong Yudean Jinghai Power Generation Co. Ltd.，Minister of strategy Development Dept and party branch secretary of Energy Group.Ms. Li Xiaoqing born in September 1971 was graduated from Chongqing University with a master's degree.She is a senior economist. She used to be secretary clerk of general manager's office manager assistant board secretary and manager of board affairs department deputy general manager of Guangdong Electric Power Development Co. Ltd and she concurrently severed as the general manager of Guangdong Yudean Financial Leasing Co. Ltd; she was the party branch secretary and general manager of Guangdong Yudean Financial Leasing Co. Ltd; and she served as secretary of the General Party Branchland chairman of Guangdong Energy Group Finance Co. Ltd and she was the secretary of the Head quarter Party Branch of the of Guangdong Energy Group Finance Co. Ltd and the secretary of the board of directors the secretary and general manager of the party branch of the legal affairs and capital operation department and the director of the general manager office and the director of the board office of Guangdong Energy Group Co. Ltd Director of Guangdong Electric Power Development Co. Ltd.Mr. Li Baobing born in September 1974 graduated from Xi'an Jiaotong University with a master degree is a senior economist. Currently he is the Minister of Finance Department and Secretary of the Party Branch of Guangdong Energy Group Co. Ltd. Director of Guangdong Electric Power Development Co. Ltd .He served as Assistant to General Manager of Budget and Finance Department and Director of Asset Management Department of Guangzhou Lingnan International Enterprise Group Co. Ltd. Manager of Investment Department and Deputy General Manager of Guangdong Yudean Finance Co. Ltd. and had concurrently served as General Manager of Shenzhen Tianxin Insurance Brokers Co. Ltd.and Vice Minister，Minister and Secretary of the Party Branch ofFinance Department of Guangdong Energy Group Co. Ltd.Mr. Mao Qinghan born in October 1974 Bachelor of Hunan University and Master of Engineering from South China University of Technology. Engineer. He once served as the secretary and director of the party branch of Xicun Thermal Power Plant in Guangzhou power plant the deputy general manager of Guangzhou Power Plant the secretary of the party branch of Guangzhou Power Plant Co. Ltd. the secretary and general manager of the party branch of Guangzhou Wanglong Thermal Power Co. Ltd. the safety director and general manager of the Health and Safety Management Department of Guangzhou Development Group Co. Ltd. and the secretary and general manager of the Party Committee of Guangzhou Development Power Group Co. Ltd.Ms. Zhang Hanyu was born in January 1965 with a Doctor of Philosophy from Renmin University of China.She is currently the vice chairman of Shenzhen Hualing Derui Equity Investment Fund Management company and concurrently holds an independent director of JSTI Group Co. Ltd and Guangdong Electric Power Development Co. Ltd. She used to serve asLecturer at Capital University of Economics and Business Section Chief of China Securities Regulatory Commission Assistant General Manager of China Securities Depository and 512022 Annual Report Clearing Corporation and Deputy General Manager of Ping An Securities.Mr. Wu Zhanchi was born in October 1975 with a Doctor of Management from Southwestern University of Finance and Economics. He is a Professor and doctoral supervisor and he is non-practicing member of Chinese Institute of Certified Public Accountants. He is currently a professor of Jinan University an expert of the Guangdong Provincial Department of Finance and the State-owned Assets Supervision and Administration Commission an independent director of Jitai Co. Ltd an independent director of Jiahe Intelligent Co. Ltd an independent director of Shenzhen Baiguoyuan Co. Ltd and an independent director of Minbang Optoelectronics Co. Ltd an independent director of Guangdong Electric Power Development Co. Ltd. He used to be the auditor of Hunan Yingte Accounting Firm and the executive director of the Accounting Master Education Center of Jinan University.Mr. Cai Guowei was born in November 1979 with a Doctor of Economics from Sun Yat-Sen University. He is professor and doctoral supervisor. He is currently a professor and doctoral supervisor of Lingnan College of Sun Yat-sen University and he is the head of the Institute of Digital Economy and Policy of Sun Yat-sen University. He is also the executive director of the China World Economics Association the deputy secretary- general and director of the Guangdong Economic Association the director of the China Institutional Economics Forum the member of the Youth Committee of the China Optimal Law Coordination Law and Economic Mathematics Research Association the consultant expert of the Guangzhou and Huizhou Municipal Governments and the evaluation expert of the National Natural Science Foundation of China and the National Social Science Fund and independent director of Guangdong Electric Power Development Co. Ltd . He used to be the assistant dean and vice dean of Lingnan College of Sun Yat-Sen University.Mr. Ma Xiaoqian born in March 1964 is Ph.D.of engineering thermophysics from South China University of Technology. He is a professor and currently serving as the director of the Key Laboratory of the Electric Power School of South China University of Technology and concurrently serving as the deputy director of teaching guiding committee of energy and power professional of high education of the Ministry of Education the chairman of the Guangzhou Energy Institute the outside director of Guangzhou Environmental Protection Investment Group Co. Ltd. and the independent director of Guangzhou Development Group Co. Ltd and Guangdong Electric Power Development Co. Ltd. He used to be the dean and vice president of Electric Power College of the South China University of Technology.Mr. Sha Qilin born in October 1960. Master of Wuhan Institute of Technology. Associate Professor practicing lawyer. He is currently a lawyer of Guangdong Nanguo Desai Law Firm member of the Professional Committee of Financial and Securities of Guangzhou Lawyers Association and concurrently an independent director of Guangdong Electric Power Development Co. Ltd. He was an associate professor of Wuhan Institute of Technology (now Wuhan University of Technology) head of investment and development department of China Huandao Group company deputy chief engineer of group and chief manager of overseas listed leading group.Mr. Chen Yanzhi born in July 1975 graduated from Guangdong University of Technology with a bachelor's degree Senior Political Engineer. He is currently the Deputy Secretary of the Party Committee and Chairman of the Trade Union and Employee Director of Guangdong Electric Power Development Co. Ltd. He used to be the Assistant Engineer of the Technical Improvement company of Guangdong Electric Power Industry Bureau the special person in charge of the Labor and Wage Division the special person in charge of the personnel of Tianshengqiao First-class Hydropower Development Co. Ltd. the special person in charge of the Human Resources Department and the Manager and Deputy Head of the Personnel Division of Guangdong Yudean Group Co. Ltd.Mr. Zhou Zhijian was born in October 1972 with bachelor of Economics from Zhongnan University of 522022 Annual Report Finance and Economics and Master of Business Administration from Jinan University and he is senior accountant.He is currently the Chief Auditor General Manager and Secretary of the Party Branch of the Audit Department of Guangdong Energy Group Co. Ltd and Chairman of the Supervisory Board of Guangdong Electric Power Development Co. Ltd. He served as Manager of the Asset Operation Division of the Strategic Development Department of Guangdong Yudean Asset Management Co. Ltd Deputy Minister of the Finance Department of Guangdong Yudean Asset Management Co. Ltd Deputy Minister and Minister of the Finance Department of Guangdong Yudean Group Co. Ltd and Deputy Secretary and General Manager of the General Party Branch of Guangdong Energy Group Finance Co. Ltd.Ms. Shi Yan born in December 1977 Master graduate from Sun Yat-sen University Senior accountant.Currently she is the manager of the comprehensive branch of the Finance Department of Guangdong Energy Group Co. Ltd and Supervisor of Guangdong Electric Power Development Co. Ltd. Previously she was the special manager director and general manager of the Cost Accounting Division of the Finance Department of Guangdong Energy Group Co. Ltd.Mr. Li Ruiming born in December 1963. Bachelor degree from Guangdong Administration College Master of Power Engineering from Zhejiang University Professor-level Senior Engineer. He is currently the Deputy Secretary of the Party Committee and Secretary of Committee for Discipline Inspection and Employee Supervisorof Guangdong Electric Power Development Co. Ltd. He used to be Operation Workshop Director and Branch Secretary Assistant to Plant Manager and Director of Coal Water Slurry Project Office of Maoming Thermal Power Plant Deputy Secretary of Party Committee Secretary of Committee for Discipline Inspection Chairman of Trade Union of Maoming Thermal Power Plant Plant Manager Secretary of Party Committee Secretary of Committee for Discipline Inspection and Chairman of Trade Union of Maoming Thermal Power Plant Head of Preparatory Group of Bohe Coal and Electricity Company Plant Manager and Secretary of Party Committee of Yunfu Power Plant General Manager and Secretary of Party Committee of Yunhe Power Plant Secretary of Party Committee Secretary of Party Committee Secretary of Committee for Discipline Inspection and Chairman of Trade Union of Shajiao C Power Plant.Mr. Li Qing born in May 1977. Bachelor of Economics Shanghai University of Finance and Economics.senior accountant. The current Guangdong Electric Power Development Co. Ltd. employee supervisor director of the audit room. Former Yunfu Power Plant Finance Department Accounting Guangdong Yuelong Power Co.Ltd.Mr. Guo Yongxiong born in January 1974 Bachelor of Engineering from Hehai University Master of Engineering from South China University of Technology is Senior Engineer. Currently he is deputy general manager of Guangdong Electric Power Development Co. Ltd. He used to be in charge for the production preparation department of Zhuhai Guangzhu Power Generation Co. Ltd specially in charge of Engineering Department for steam turbines of Guangdong Zhuhai Power Generation Co. Ltd as a loaned staff borrowed by Zhuhai Power Plant and used to be team leader and planning supervisor of Zhuhai Power Plant Maintenance Department Engineer of Zhuhai Guangzhu Power Generation Co. Ltd Planning Director of Planning and Contract Department and Planning Director of Zhuhai Power Plant Unit 3 and 4 Extension Office Deputy Manager of Planning and Contract Department and Planning Director of Jinwan Power Generation Company Manager of Human Resources Department Manager of Equipment Department Party Committee Member Chief Engineer of Guangdong Zhuhai Jinwan Power Generation Co. Ltd and served as Deputy General Manager of Guangdong Red Bay Power Generation Co. Ltd.Mr. Liu Wei born in April 1979 is Bachelor of finance from Zhongnan University of Economics and Law.He is an economist and currently serves as the Company’s deputy general manager chief financial officer 532022 Annual Report secretary of the board of directors had served as the specialist of the financial department of Guangdong Electric Power Group Co. Ltd the specialist and the principal officer for the board affairs department the representative of the company's securities affairs of Guangdong Yudean Group Co. Ltd the manager of the board affairs department.Office taking in shareholder companies √Applicable □Not applicable Does he /she Names of the Names of the shareholders Titles engaged in the Sharing date of office Expiry date receive persons in office shareholders term of office remuneration orterm allowance from the shareholder Vice chief engineer General Manager of Li Fangji Guangdong Energy Group Operating ManagementCo. Ltd. April 12018 Yes Dept and Secretary of Party Branch Vice Chief accountant General Manager of the Li Baobing Guangdong Energy GroupCo. Ltd. Finance Department and September 12019 Yes Secretary of the Party Branch General Auditor General Zhou Zhijian Guangdong Energy Group Manager of the AuditCo. Ltd. January 12021 YesDepartment secretary of Party Branch Shi Yan Guangdong Energy Group Deputy GM of FinanceCo. Ltd. June 12020 YesDept Mao Qinghan Guangzhou DevelopmentGroup Co. Ltd. Assistant general manager July 12021 No Notes to post- Where there are more than one post the starting time of appointment shall be the starting time of the main post.holding in shareholder’s unit Offices taken in other organizations √Applicable □Not applicable Drawing Name Other unit Title Start date of office End date of remuneration term office term and allowancefrom of other unit(Y/N) Wang Jin Guangdong Energy Maoming ThermalPower Plant Co. Ltd. Board chairman March 12022 No Wang Jin Guangdong Red Bay Power GenerationCo. Ltd. Board chairman December 1 2020 No Wang Jin Guangdong Yudean Jinghai PowerGeneration Co. Ltd. Board chairman December 12021 No Wang Jin Guangdong Huizhou Natural Gas PowerGeneration Co. Ltd. Board chairman May 12021 No Wang Jin Guizhou Yueqian Electric Power Co.Ltd. Board chairman March 12021 No Wang Jin Guangdong Huizhou Pinghai PowerGeneration Co. Ltd. Board chairman April 12021 No Zheng Guangdong Yudean Huadu Natural Gas Yunpeng Thermal Power Co. Ltd. Board chairman June 12021 No 542022 Annual Report Zheng Guangdong Yudean Bohe Coal Power Yunpeng Co.Ltd. Board chairman June 12021 No Zheng Guangdong Yudean Binhaiwan Energy Yunpeng Co. Ltd. Executive director June 12019 No Zheng Guangdong Yudean Dayawan Integrated Yunpeng Energy Co. Ltd Board chairman February 12020 No Zheng Guangdong Yudean Dananhai Intelligent Yunpeng Energy Co. Ltd. Executive director January 12021 No Zheng Guangdong Yudean Baihua Integrated Yunpeng Energy Co. Ltd Executive director February 12021 No Zheng Guangdong Yudean Qiming Energy Co.Yunpeng Ltd. Executive director April 12021 No Zheng Guangdong Yudean Technology Yunpeng Board chairman September 12022 NoEngineering Co. Ltd.Zheng Guangdong Yudean Huixin thermal Yunpeng Board chairman August 12022 NoPower Co. Ltd.Li Baobing CSPG Energy Co. Ltd. Supervisor June 12018 No Li Baobing Guangdong Yudean Finance Lease Co.Ltd. Board chairman September 12020 No Guangdong Yudean Li Baobing Guangdong Energy Group Finance Co.Ltd. Director Finance Lease Co. NoLtd.Chen Yanzhi Shanxi Yudean Energy Co. Ltd. Vice Boardchairman June 12022 No Chen Yanzhi Guangdong Yudean Shipping Co. Ltd. Director April 12021 No Chen Yanzhi Guangdong Energy Group Xinjing Director December 12022 No Company Chen Yanzhi Guangdong Yudean Technology Director September 12022 No Management Co. Ltd.Executive director Mao Qinghan Guangzhou Development Electric Power （legalEnterprise Co. Ltd. representative） December 12017 Yes secretary of the party committee Executive directorGenearl Mao Qinghan Guangzhou Development Electric Power Manager（legalEnterprise Co. Ltd. April 12018 Norepresentative） Sha Qilin Guangdong Guangyue Law firm A lawyer Partner July 12022 Yes Provincial Key Laboratory School of Ma Xiaoqian Electric Power South China University Director July 12014 Yes of Technology Ma Xiaoqian Guangzhou Environmental protectionInvestment Group Co. Ltd. External director September 12016 Yes Ma Xiaoqian Guangzhou Development Group Co. IndependentLtd. Director June 12016 Yes Ma Xiaoqian Guangzhou Hengyun Enterprise Group IndependentCo. Ltd. Director March 12021 Yes Ma Xiaoqian Guangzhou Steel Gas Energy Co. Ltd IndependentDirector July 12021 Yes Shenzhen Hualing Derui Investment Zhang Hanyu Vice Chairman January 12020 Yes Fund Management Company Independent Zhang Hanyu JSTI September 12021 Yes Director Wu Zhanchi Jinan University Professor July 12006 Yes 552022 Annual Report Independent Wu Zhanchi Guangzhou Jitai Chemical Co. Ltd. April 12021 Yes Director Independent September Wu Zhanchi Jiahe Intelligent Technology Co. LTD September 12016 Yes Director 12022 Shenzhen Baiuoyuan Industrial (Group) Independent Wu Zhanchi April 12020 Yes Co. Ltd Director Shenzhen Minbao Photoelectricity Co. Independent Wu Zhanchi July 12019 Yes Ltd. Director Cai Guowei Sun Yat-sen University Professor July 12008 Yes Chairman of the Zhou Zhijian Yangjiang Nuclear Power Co. Ltd. Supervisory February 12020 No Committee Taishan Nuclear Power Industry Zhou Zhijian Supervisor February 12021 No Investment Co. Ltd.Guangdong Energy Group Finance Co.Zhou Zhijian Director January 12020 No Ltd.Shi Yan Guangdong Electric Power Development Chairman of the Corporation Supervisory February 12021 NoCommittee Shi Yan Guangdong Energy Group Guizhou Co.Ltd. Director August 12020 No Convenor of the Li Qing Zhanjiang Electric Power Co. Ltd Board of October 12022 No Supervisors Li Qing Guangdong Yudean Technology Chairman of the Supervisory September 12022 No Management Co. Ltd. Committee Chairman of the Li Qing Guangdong Yudean Huixin Co. Ltd. Supervisory August 12022 No Committee Li Qing Guangdong Yudean Bohe Energy Co.Chairman of the Supervisory June 12021 No Ltd. Committee Li Qing Guangdong Yudean Yongan Natural Gas Chairman of the thermal Power Co. Ltd. Supervisory March 12022 NoCommittee Convenor of the Li Qing Yunnan Nengtou Weixin Energy Co.Ltd. Board of March 12022 No Supervisors Convenor of the Li Qing Shenzhen Guangqian Electric Power Board of July 12022 No Co. ltd.Supervisors Chairman of the Li Qing Zhanjiang Zhongyue Energy Co. Ltd. Supervisory August 12019 No Committee Li Qing Guangdong Yudean Baihua IntegratedEnergy Co. Ltd Supervisor February 12021 No Convenor of the Li Qing Guangdong Yudean Shipping Co. Ltd. Board of April 12021 No Supervisors Li Qing Guangdong Energy Finance lease Co.Ltd. Supervisor November 12020 No Guo Yongxiong Zhanjiang Electric Power Co. Ltd. Board chairman October 12022 No Guo Guoneng Yudean Taishan Power Yongxiong Generation Co. Ltd. Director December 12021 No Guo Guangdong Yuelong Power Generation Board chairman January 12022 No 562022 Annual Report Yongxiong Co. Ltd.Guo Guangdong Yudean Yongan Natural Gas Yongxiong thermal Power Co. Ltd. Board chairman March 12022 No Guo Guangdong Yudean Maoming Natural Yongxiong Board chairman September 12022 NoGas thermal Power Co. Ltd.Guo Guangdong Yudean Leizhou Power Yongxiong Executive director November 12022 NoGeneration Co. Ltd.Guo Guangdong Yudean Bijie New Energy Yongxiong Executive director October 12021 NoCo. Ltd.Guo Yongxiong Zhuhai Yudean New Energy Co. Ltd. Executive director June 12022 No Guo Guandong Energy Group Xinjiang Co.Yongxiong Director December 12022 NoLtd.Liu Wei Guangdong Wind Power Generation Co.Ltd. Director May 12022 No Liu Wei Guangdong Energy Group Finance Co.Ltd. Director June 12022 No Liu Wei Guangdong Yudean Electric Power SalesCo. Ltd. Director April 12020 No Liu Wei Shenzhen Capital Group Co. Ltd. Supervisor October 12019 No Liu Wei Guangdong Yuejia Electric Power Co. Vice BoardLtd. chairman March 12019 No Liu Wei Guangzhou Zhujiang Natural Gas Power Vice BoardGeneration Co. Ltd. chairman April 12022 No Liu Wei Guangdong Energy Finance lease Co.Ltd. Director November 12020 No Liu Wei Guangdong Yudean Zhongshan ThermalPower Plant Co. Ltd. Board chairman April 12021 No Liu Wei Tumushuke Thermal Power Co.Ltd. Director December 12021 No Chairman of the Liu Wei Guangdong Energy Group Xinjiang Co. Supervisory December 12022 No Ltd.Committee Liu Wei Guangdong Yudean Humen PowerGeneration Co. Ltd. Director April 12021 No Liu Wei Yunnan Nengtou Weixin Energy Co. Vice BoardLtd. chairman March 12022 No Punishments to the current and leaving board directors supervisors and senior managers during the report period by securities regulators in the recent three years □ Applicable √Not applicable 3. Remuneration to directors supervisors and senior executives Decision-making procedures basis for determination and actual payment of the remuneration to directors supervisors and senior executives Directors supervisors and senior executives of the company shall obtain labor remuneration and enjoy corresponding employee benefits according to their position and the company's wage system. Except such remuneration and benefits no other remuneration and fringe benefits shall be additionally provided；The allowance for the independent directors and independent supervisors of the company shall be paid according to the standards approved by the shareholders' general meeting. At the end of the report period the directors supervisors and senior executives received the actual remuneration before tax was total RMB 6.1244 million .Remuneration to directors supervisors and senior executives in the reporting period In RMB10000 572022 Annual Report Remuneration Total actually Name Positions Sex Age Office status remuneration receives at thereceived from end of the the shareholder reporting period Wang Jin Board chairman Male 59 In office 85.34 No Zheng Yunpeng Director General Manager Male 54 In office 84.6 No Li Fangji Director Male 55 In office Yes Li Baobing Director Male 48 In office Yes Li Xiaoqing Director Female 51 In office Yes Chen Yanzhi Employee director Male 47 In office 63.71 No Mao Qinghan Director Male 48 In office Yes Ma Xiaoqian Independent director Male 58 In office 12.17 No Cai Guowei Independent director Male 43 In office 2.68 No Zhang Hanyu Independent director Female 57 In office 3.21 No Wu Zhanchi Independent director Male 47 In office 2.68 No Zhou Zhijian Chairman of the SupervisoryCommittee Male 50 In office Yes Li Ruiming Employee supervisor Male 59 In office 71.96 No Shi Yan Supervisor Female 45 In office Yes Li Qing Employee supervisor Male 45 In office 41.65 No Sha Qilin Independent supervisor Male 62 In office 7.14 No Guo Yongxiong Deputy GM Male 48 In office 70.03 No Deputy General manager Liu Wei Finance Manager Board Male 43 In office 71.27 No secretary Tang Yongguang Deputy GM Male 60 Dimission 72.68 No Shen Hongtao Independent director Female 55 Dimission 8.48 No Wang Xi Independent director Male 52 Dimission 9.02 No Yin Zhongyu Independent director Male 53 Dimission 5.82 No Total -- -- -- -- 612.44 -- VI. Performance of directors' duties during the reporting period 1. Information of the board meetings during the reporting period Session Convening date Disclosure date Meeting resolution The First meeting of the Announcement:No.::2022-04Published in China Securities January 202022 January 222022 Tenth Board of Directors Daily Securities Times and http//.www.cninfo.com.cn The Second meeting of the AnnouncementNo.::2022-11Published in China Securities March 252022 March 262022 Tenth Board of Directors Daily Securities Times and http//.www.cninfo.com.cn The 6th meeting of the Tenth AnnouncementNo.::2022-16Published in China Securities April 202022 April 222022 Board of Directors Daily Securities Times and http//.www.cninfo.com.cn The 3rd Meeting of the Tenth AnnouncementNo.::2022-24Published in China Securities Board of Directors by April 272022 April 282022 Daily Securities Times and http//.www.cninfo.com.cn Correspondence of 2022 The7th meeting of the Tenth AnnouncementNo.::2022-30Published in China Securities June 222022 June 232022 Board of Directors Daily Securities Times and http//.www.cninfo.com.cn 582022 Annual Report The 8th meeting of the Tenth AnnouncementNo.::2022-37Published in China Securities August 292022 August 312022 Board of Directors Daily Securities Times and http//.www.cninfo.com.cn The 9th meeting of the Tenth September AnnouncementNo.::2022-47Published in China Securities September 172022 Board of Directors 162022 Daily Securities Times and http//.www.cninfo.com.cn The 10th meeting of the AnnouncementNo.::2022-53Published in China Securities October 272022 October 292022 Tenth Board of Directors Daily Securities Times and http//.www.cninfo.com.cn The Fourth Meeting of the November AnnouncementNo.::2022-58Published in China Securities Tenth Board of Directors by November 172022 162022 Daily Securities Times and http//.www.cninfo.com.cn Correspondence of 2022 The 11th meeting of the November AnnouncementNo.::2022-60Published in China Securities December 12022 Tenth Board of Directors 292022 Daily Securities Times and http//.www.cninfo.com.cn The Fifth Meeting of the December AnnouncementNo.::2022-62Published in China Securities Tenth Board of Directors by December 172022 162022 Daily Securities Times and http//.www.cninfo.com.cn Correspondence of 2022 2. Attendance of directors at the board meetings and the general meeting of shareholders Attendance of directors at the board meetings and the general meeting of shareholders Number of Number of board Number of board Number of Whether to Name of meetings board meetings board Number of attend the General attended meetings attended by meetings board board meetings ofdirector during the attended in means of attended by meetings meeting in shareholders reporting person communicati proxy absent from person twice attended period on in a row Wang Jin 11 6 5 0 0 No 3 Zheng Yunpeng 11 5 5 1 0 No 4 Li Fangji 11 4 5 2 0 No 4 Li Xiaoqing 7 4 2 1 0 No 3 Li Baobing 11 5 5 1 0 No 3 Chen Yanzhi 11 5 5 1 0 No 4 Mao 11 3 5 3 0 No 1 Qinghan Ma Xiaoqian 11 6 5 0 0 No 4 Zhang Hanyu 5 3 2 0 0 No 2 Wu Zhanchai 5 3 2 0 0 No 2 Cai Guowei 5 3 2 0 0 No 2 Shen 633002 Hongtao No Wang Xi 6 3 3 0 0 No 2 Yin Zhongyu 6 1 3 2 0 Yes 0 Explanation of failure to attend the board meeting in person twice in a row During the reporting periodYin Zhongyu is an independent director due to traffic restrictions Failure to attend board meetings in person for two consecutive occasionshowever he entrusted other independent director to attend and vote in all meetings. 3. Directors' objections to related matters of the Company Whether the director raises any objection to the relevant matters of the Company □ Yes √ No 592022 Annual Report During the reporting period the directors did not raise any objection to the relevant matters of the company. 4. Other descriptions of directors' performance of duties Whether the directors' suggestions on the company have been adopted √ Yes □No The director's statement on whether the relevant suggestions of the company have been adopted or not In 2022 the directors of the company faithfully and diligently performed their corresponding duties in strict accordance with the Company Law Securities Law Listing Rules for Stocks of Shenzhen Stock Exchange and other relevant laws and regulations as well as the Articles of Association and the Rules of Procedure of the Board of Directors paid close attention to the company's standardized operation production and management carefully reviewed the reports and related documents submitted by the company actively attended the company's board meetings special committee meetings and general meeting of shareholders carefully considered all proposals made professional independent objective and fair judgments and put forward constructive opinions and suggestions on the company's development strategy corporate governance and business decisions which played an important role in the company's scientific decision-making and steady development. During the reporting period the company's directors performed their duties diligently honestly and faithfully ensured scientific timely and efficient decision-making through continuous supervision and promotion of the implementation of the resolutions of the Board of Directors and earnestly protected the overall interests of the company and the legitimate rights and interests of minority shareholders. 602022 Annual Report VII. Situation of special committees under the Board of Directors during the reporting period Numbe Other Details r of informati of Committee Memberinformati meetin Conveni Meeting content Put forward important opinions and on ofname on gs ng date suggestions duty objecti conven performa ons (if ed nce any) The Audit Compliance Committee Shen worked in strict accordance with Hongtao 1. It reviewed the accounting statements and notes in the 2021 2021 Financial the Company Law the regulatory Li Report;.2.It reviewed the proposal of the report on the evaluation of the rules of China SecuritiesAudit and Xiaoqing Regulatory Commission the Complianc April Company’s internal control for 2021;3.It reviewed the Proposal of internal Li 2 control self-evaluation work plan in 2022;4.It reviewed the Proposal on the 2021 Articles of Association and other e 22022 Baobing annual Risk management report;5.It reviewed the Proposal of the provision for relevant regulations performed its Committee Wang impairment of assets ;6.It reviewed the Proposal on the Write-offs Asset; 7.It duties diligently and Xi Yin reviewed the Proposal for Hiring the Annual Financial Report Audit Agency. conscientiously and unanimously Zhongyu passed all proposals according to the actual situation of the company The Audit Compliance Committee Shen worked in strict accordance with Hongtao 1. It reviewed the Proposal on Change in the Accounting Policy;2.It reviewedthe proposal Concerning Financial Report for the semi-annual of 2022;It the Company Law the regulatory Li Audit and reviewed the accounting statements and notes for the semi-annual of 2022;4.It rules of China Securities Xiaoqing Complianc August reviewed the Proposal on Formulating "Guangdong Electric Power Regulatory Commission the Li 2 Development Co. Ltd’s Internal Control Self-Assessment Management Articles of Association and other e 192022 Baobing Measures;5.It reviewed the Proposal on Formulating the Management Measures relevant regulations performed its Committee Wang for Comprehensive Risk Management and Internal Control of Guangdong duties diligently and Xi Yin Electric Power Development Co. Ltd.;6.It reviewed the Proposal on theCompany's 2021 Annual Compliance Management Report. conscientiously and unanimously Zhongyu passed all proposals according to the actual situation of the company Wu The Audit Compliance Committee Zhanchi worked in strict accordance with Audit and 1. It reviewed the Proposal on the Work Plan of Financial Final Accounts in Li Decemb the Company Law the regulatory Complianc 2022; 2. It reviewed the Proposal on ; 3. It reviewed the 2022 Li 232022 Regulatory Commission the Committee Annual Audit Report.Baobing Articles of Association and other Zhang relevant regulations performed its 612022 Annual Report Hanyu duties diligently and Cai conscientiously and unanimously Guowei passed all proposals according to the actual situation of the company Wang The Budget Committee worked in Jin strict accordance with the Company Zheng Law the regulatory rules of China Yunpeng Securities Regulatory Commission Budget Li April 1. It reviewed the company's 2021 Budget Implementation Report; 2. It the Articles of Association and Committee Fangji 22022 reviewed the company's 2021 Budget Report. other relevant regulations Li performed its duties diligently and Baobing conscientiously and unanimously Shen passed all proposals according to Hongtao the actual situation of the company.The Nomination Committee Ma worked in strict accordance with Xiaoqing the Company Law the regulatory Wang rules of China Securities Nominatio Jin Chen Regulatory Commission the April It reviewed the Proposal on Recommending Li Xiaoqing as a candidate for n Yanzhi 2 Articles of Association and other 272022 director of the company Committee Shen relevant regulations performed its Hongtao duties diligently and Yin conscientiously and unanimously Zhongyu passed all proposals according to the actual situation of the company.The Nomination Committee Ma worked in strict accordance with Xiaoqian the Company Law the regulatory Wang rules of China Securities Nominatio Xi Chen Regulatory Commission the August It reviewed the Proposal on Recommending some candidates for independent n Yanzhi 2 Articles of Association and other 292022 directors of the 10th Board of Directors. Committee Shen relevant regulations performed its Hongtao duties diligently and Yin conscientiously and unanimously Zhongyu passed all proposals according to the actual situation of the company.Remunerat Wang 1.It reviewed the proposal on determining the salary and position coefficient of The Remuneration and Assessment April ion and Xi Li 2 managers of Guangdong Electric Power Development Co. Ltd. in 2021 ;2.It Committee worked in strict 22022 Assessmen Fangji reviewed the Proposal on determining the business performance assessment accordance with the Company Law 622022 Annual Report t Mao scores of managers of Guangdong Electric Power Development Co. Ltd in the regulatory rules of China Committee Qinghan 2021; 3.It reviewed the proposal on the Budget Management Measures of Securities Regulatory Commission Ma Guangdong Electric Power Development Co. Ltd. the Articles of Association and Xiaoqian other relevant regulations Yin performed its duties diligently and Zhongyu conscientiously and unanimously passed all proposals according to the actual situation of the company.The Remuneration and Assessment Wang Committee worked in strict Xi Li accordance with the Company Law Remunerat Fangji It reviewed the proposal on the 2022 Annual Business Performance the regulatory rules of China ion and Mao June Responsibility Letter for the Management Members of Guangdong Electric Securities Regulatory Commission Assessmen Qinghan 2 the Articles of Association and 222022t Ma Power Development Co. Ltd.” other relevant regulations Committee Xiaoqian performed its duties diligently and Yin conscientiously and unanimously Zhongyu passed all proposals according to the actual situation of the company.The Strategic Development Wang Committee worked in strict Jin accordance with the Company Law Zheng the regulatory rules of China Strategic Yunpeng Securities Regulatory Commission Developm Li October 1 It reviewed the Proposal of the Outline of the company's Fourteen Five Plan the Articles of Association and ent Xiaoqing 262022 other relevant regulations Committee Ma performed its duties diligently and Xiaoqian conscientiously and unanimously Zhang passed all proposals according to Hanyu the actual situation of the company. 632022 Annual Report VIII.The working status of the board of supervisors The board of supervisors finds out whether the company has risks during the monitoring activities during the reporting period □ Yes √ No The Supervisory Committee has no objection to the supervision matters during the reporting period.IX. Particulars about employees. 1.Number of staff professional structure and educational background Number of in-service staff of the parent company（person） 850 Number of in-service staff of the main subsidiaries（person） 7987 Total number of the in-service staff（person） 8837 Total number of staff receiving remuneration in the current period（person 9139） The number of the parent company and the main subsidiary’s retired staffs who need to bear the cost 3108（person） Professional Classified according by Professions Number of persons（person） Production 5244 Sales 185 Technical 1704 Financial 267 Administrative 1437 Total 8837 Education Classified according by education background Number of persons（person） Doctor 2 Master 318 Universities 4756 Colleges 2294 Technical secondary school 329 High school and Below 1138 Total 8837 2. Remuneration policies The company’s staff received the salaries and enjoyed the benefits according to the relevant provisions stipulated in the company’s Salary Management Approach. The salary of the company’s staff (Except the management staff who categorized in the annual salary system) basically constituted by the basic salary post salary performance salary allowance and special bounties and so on. 3.Training plan The company formulated the Temporary Provisions for the Management of Staff Education and Training. The staff training was adhered to the principle of learning integrated with application learning by the needs and stressing of practical effect focused on the main contents of the post and the practical operation skills. The training contents included the new staff orientation training post training continuing education overseas training and other trainings. 642022 Annual Report 4. Outsourcing situation □ Applicable √ Not applicable X. Specification of profit distribution and capitalizing of common reserves Formulation implementation or adjustment of the profit distribution policy especially the cash dividend policy during the reporting period □ Applicable √Not applicable During the reporting period the company made a profit and the profit available to shareholders of the parent company was positive but no cash dividend distribution plan was put forward.□ Applicable √ Not applicable Profit distribution and capitalization of capital reserve during the reporting period □ Applicable √Not applicable The company Will not distribute cash dividend or bonus shares neither capitalizing of common reserves.XI. Implementation Situation of Stock Incentive Plan of the Company Employee Stock Ownership Plan or Other Employee Incentive Measures □Applicable √ Not applicable None XII. Construction and implementation of internal control system during the reporting period 1. Construction and implementation of internal control (I) Organization setup and operation The company has established a perfect organizational structure system and its corporate governance structure internal organization design and operation mechanism meet the requirements of modern enterprise system. The Board of Directors of the company shall bear the ultimate responsibility for the evaluation of internal control; The Audit and Compliance Committee shall be responsible for organizing leading and supervising the internal control evaluation reviewing the internal control evaluation report and examining and approving the rectification opinions of major and important defects in internal control. The management of the company is responsible for organizing the implementation of the internal control evaluation proposing the business or matters that should be focused on in the internal control evaluation and examining and approving the internal control evaluation plan and the internal control evaluation report.As the centralized department of internal control management the Board Affairs Department of the company is responsible for organizing the internal control self-inspection testing and evaluation in the company proposing rectification schemes and specific rectification plans for the design and operation defects found supervising the completion of rectification and cooperating with the internal audit department and external auditors to carry out internal control evaluation at the enterprise level.The Board of Directors the Audit and Compliance Committee the management and functional departments of the company earnestly perform their duties of internal control and management. Every year the company conducts a comprehensive self-evaluation on the effectiveness of the internal control system timely corrects the internal control defects continuously optimizes the internal control system and effectively improves the 652022 Annual Report company's management level and risk prevention ability.(II) Establishment and implementation of internal control system According to the Basic Standards for Internal Control of Enterprises and its supporting guidelines Guideline No.1 for Self-discipline Supervision of Listed Companies of Shenzhen Stock Exchange -Standardized Operation of Listed Companies on Main Board Listing Rules for Stocks of Shenzhen Stock Exchange and relevant laws and regulations combined with the actual situation of the company from the perspective of business management function management and post management the company formulates basic management systems including financial accounting system procurement system asset management system engineering project management system human resource management system administrative management system internal audit system guarantee management system related party transaction system investment and financing management system and subsidiary management system to make decisions and management on major issues of the company.(III) Overall evaluation In 2022 the company conscientiously implemented the national and industry laws and regulations the latest supervision standards and the regulatory standards and normative requirements of state-owned assets and the group company constantly improved the compliance of the standard system and well ensured revising improving and upgrading the internal control system; strictly implemented the "three important and one major" system standardized major decision-making behaviors effectively prevented decision-making risks enhanced scientific decision-making and avoided decision-making mistakes; carried out in-depth internal control self- evaluation continuously strengthened the rectification of internal control defects formed an effective internal control management closed loop of "control-evaluation-improvement-control" continuously and dynamically improved the internal control management system and ensured that the company maintained effective internal control in all major aspects according to the requirements of the enterprise internal control standard system and relevant regulations and no factors that affect the evaluation conclusion of internal control effectiveness would occur. 2.Details of major internal control defects found during the reporting period □ Yes √ No XIII. Management and control of the Company's subsidiaries during the reporting period Problems Measures Subsequent Company name Integration plan Integratio encounteren progress d in taken for Solution progress planned integration solution solution Nanjing Linyuan Acquired 100% equity of Senhai New Energy Merge No Not Not the company. completed applicable applicable Not applicable Co. Ltd.Nanjing Senhong Acquired 100% equity of Merge No Not Not Not applicable New Energy Co. Ltd. the company . completed applicable applicable Taishan Dongrun Acquired 100% equity of Zhongneng New Merge No Not Not the company. completed applicable applicable Not applicable Energy Co. Ltd.Laixi Xinguangyao Acquired 99% equity of New Energy Merge No Not Notcompleted applicable applicable Not applicablethe company.Technology Co. Ltd.Jiuzhou New Energy Acquired 100% equity of Merge No Not Not Not applicable（Zhaoqing）Co. the company . completed applicable applicable 662022 Annual Report Ltd.Xiangtan Xiangdian Acquired 100% equity of Wind Power Merge No Not Not Not applicable the company . completed applicable applicable Generation Co. Ltd.Zhanjing Shangyang Acquired 100% equity of Energy Technology Merge No Not Not the company . completed applicable applicable Not applicable Co. Ltd.l XIV.Internal control self-evaluation report or internal control audit report 1.Self-evaluation report on internal control Disclosure date of appraisal report on internal control April 12023 Disclosure index of appraisal report on Juchao Website:（http://www.cninfo.com.cn） Self-evaluation report of internal internal control control in 2022 The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the 92.81% company's consolidated financial statements The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on 99.76% the company's consolidated financial statements Standards of Defects Evaluation Category Financial Report Non-financial Report A. significant deficiency：* the ineffective environmental control;* irregularities appearing between company directors supervisors and A. significant deficiency ： (1) The senior executives;* serious mistakes in company lacks democratic and scientific the financial statements of the current decision-making procedures; (2) Serious period found by external audit but not the violation of national laws and inner control in the process of operating; regulations; (3) The company's important business lacks institutional control or the * ineffective supervision of inner system control fails. B. Important control from directorate and inner audit defects: (1) Large-scale and long-term institution.B. significant deficiency：* interruption of important business may Qualitative criteria accounting policy chosen and applied is cause the company to deviate from the not based on the GAAP;* anti- control goal in the field; (2) The irregularity procedure and control important defects of the previous year measures are not established; very have not been rectified; (3) There are* deficiencies in the company's important few relative control measures are business systems. C. General defects: established or implemented in terms of other internal control deficiencies in the accounting treatment related to financial reporting that do not constitute unconventional or special transaction; C. material defects or important defects.common deficiency means apart from the above “significant deficiency” and “serious deficiency” other deficiencies exist in the inner control process.A. Quantitative standards for material (1)A significant deficiency means that defects: (1) The amount of the direct property loss is between 50 Quantitative standard misstatement≥ 0.5% of operating million yuan .(2) the significant income; (2) the amount of misstatement ≥ 5% of the total profit; (3) The amount deficiency means hat the direct property of misstatement ≥ 0.5% of the total loss is between 30 million yuan assets. B. Quantitative standards for (including 30 million yuan) ; the serious 672022 Annual Report important defects: (1) 0.2% of operating deficiency means that the direct property income≤misstatement amount< 0.5% of loss is between 30 million.operating income; (2) 5% of total profits≤ misstatement amount< 1% of total profits; (3) 0.2% of total assets≤ misstatement amount < 0.5% of total assets. C. General defect quantitative standards: (1) The amount of misstatement < 0.2% of operating income; (2) the amount of misstatement < 1% of the total profit; (3) The amount of misstatement < 0.2% of total assets.Number of major defects in financial reporting a 0（ ） Number of major defects in non financial reporting (a) 0 Number of important defects in financial reporting 0（a） Number of important defects in non financial reporting（a 0） 2. Internal Control audit report √ Applicable □Not applicable Review opinions in the internal control audit report We believe that Guangdong Electric Power Development Co. Ltd. has maintained effective internal control over financial reporting in all material respects as of 31 December 2022 as per the Basic Rules for Enterprise Internal Control and relevant regulations.Disclosure date of audit report of internal control (full-text) Disclosure Index of audit report of internal control (full-text) April 12023 Internal audit report’s opinion Juchao Website:（http://www.cninfo.com.cn）2022 Auditreport of internal control Type of audit report on internal control Unqualified auditor’s report Whether there is significant defect in non-financial report No Has the CPAs issued a qualified auditor’s report of internal control .□ Yes √No Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of Directors √Yes □No XV. Rectification of self-examination problems in special governance actions of listed companies In accordance with the relevant requirements of the Notice on Well Implementation in Self-Inspection and Self-Correction of Special Actions for the Governance of Listed Companies (No. 156-[2020]Guangdong Securities Regulatory Issuance) the company submitted the Special Self-Inspection List for the Governance of Listed Companies on April 8 2021. The company attached great importance to the deficiencies and problems found in the self-inspection actively carried out rectification in accordance with the established rectification measures and reported the "Rectification Report on Corporate Governance for Self-Inspection Issues" on August 31 2021. As present issues found by the company's self-inspection were all rectified. 682022 Annual Report V. Environmental & Social Responsibility I. Significant environmental issues Whether the company or any of its subsidiaries is identified as a key polluter by the environment authorities √ Yes □ No Environmental protection related policies and industry standards The company and its subordinate units strictly abide by the "Environmental Protection Law of the People's Republic of China" "Atmospheric Pollution Prevention and Control Law of the People's Republic of China" "Water Pollution Prevention and Control Law of the People's Republic of China" "Law of the People's Republic of China on the Prevention and Control of Environmental Pollution of Solid Waste" "Air Pollutant Emission Standards for Thermal Power Plants" (GB13223) "Comprehensive Sewage Discharge Standards" (GB8978) and other relevant laws regulations and industry standards to carry out production and business activities.Environmental protection administrative licensing The company and its subsidiaries all have obtained environmental protection administrative permits in accordance with regulations and the pollution discharge permits are currently within the validity period.Industrial emission standards and the specific situation of the pollutant emission involved in the production and business activities Main Main Excessi Company pollutant pollutant Emissi Emission Emissi Verifie ve or and and specific Emission way on port port on Implemented Total d total emissio subsidiary specific numbe distributio concent pollutant emission pollutant standards emission emissio n name pollutant r n condition ration n conditi type name on Concentrated Emission Standard ofShajiao A power Air pollutant Smoke emission 1 Within the Air Pollutants for plant through factory 1.64 24.83 121.90 No Thermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard ofShajiao A power Air pollutant SO emission Within the Air Pollutants for plant through 1 factory 16.94 256.93 426.65 NoThermal Power Plants chimney (GB13223-2011) Shajiao A Concentrated Emission Standard of power Air pollutant NO emission Air Pollutants for X through 1 Within the factory 30.51 462.74 609.5 Noplant Thermal Power Plantschimney (GB13223-2011) Concentrated Emission Standard of Bohe Air pollutant Smoke emission Within the Air Pollutants for Company through 2 factory 2.07 50.92 72 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Bohe Air pollutant SO emission 2 Within the Air Pollutants for Company 2 through factory 10.2 413.04 974 No Thermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Bohe Air pollutant NO emission Within the Air Pollutants for Company X through 2 factory 33.45 1071.20 1195 NoThermal Power Plants chimney (GB13223-2011) Dapu Concentrated Emission Standard of Power Air pollutant Smoke Within theemission 2 factory 2.29 Air Pollutants for 53.473 593 No Plant through Thermal Power Plants 692022 Annual Report chimney (GB13223-2011) Concentrated Emission Standard ofDapu Power Air pollutant SO emission 2 Within the Air Pollutants for 2 through factory 14.03 328.153 1447 NoThermal Power Plants Plant chimney (GB13223-2011) Concentrated Emission Standard ofDapu Power Air pollutant NO emission 2 Within the Air Pollutants for X through factory 39.03 912.710 1502 NoThermal Power Plants Plant chimney (GB13223-2011) Concentrated Emission Standard of Red Bay Air Pollutants for Company Air pollutant Smoke emission through 4 Within the factory 2.13 90.25 1512 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Red Bay SO emission Within the Air Pollutants forCompany Air pollutant 2 through 4 factory 9.61 513.82 4851 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Red Bay emission Within the Air Pollutants for Company Air pollutant NOX through 4 factory 33.28 1254.95 4851 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Jinghai Air pollutant Smoke emission 4 Within the Air Pollutants for Company through factory 2.28 151.63 1770 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Jinghai SO emission Within the Air Pollutants forCompany Air pollutant 2 through 4 factory 15.34 1008.1 6449.52 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Jinghai NO emission Within the Air Pollutants forCompany Air pollutant X through 4 factory 32.72 2156.15 3395.39 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard ofMaoming Power Smoke emission Within the Air Pollutants forAir pollutant 2 1.17 24.60 168.12 No Plant through factory Thermal Power Plantschimney (GB13223-2011) Emission Standard of Maoming Concentrated Power SO emission Within the Air Pollutants forAir pollutant 2 through 2Plant factory 14.29 326.56 385.51 No Thermal Power Plants chimney (GB13223-2011) Maoming Concentrated Emission Standard of Power Air Pollutants forAir pollutant NO emission Within theX Plant through 2 factory 24.88 568.76 751.82 NoThermal Power Plants chimney (GB13223-2011) Emission Standard of Pinghai Concentrated Power Air Pollutants forAir pollutant Smoke emission Within the Plant through 2 factory 3.21 112.25 700 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard ofPinghai Power Air pollutant SO emission 2 Within the Air Pollutants for 2 23.29 811.17 1670 No Plant through factory Thermal Power Plantschimney (GB13223-2011) Concentrated Emission Standard ofPinghai Power Air pollutant NO emission Within the Air Pollutants for X Plant through 2 factory 38.61 1316.40 2423 NoThermal Power Plants chimney (GB13223-2011) 702022 Annual Report Shaoguan Concentrated Emission Standard of Power Air pollutant Smoke emission Within the Air Pollutants for Generation through 2 factory 2.01 46.57 717.78 NoThermal Power Plants Plant chimney (GB13223-2011) Shaoguan Concentrated Emission Standard of Power Air pollutant SO emission 2 Within the Air Pollutants for Generation 2 through factory 17.85 412.52 2303.55 No Thermal Power Plants Plant chimney (GB13223-2011) Shaoguan Concentrated Emission Standard of Power Air pollutant NO emission 2 Within the Air Pollutants for X through factory 38.20 883.08 2254.42 NoGeneration Thermal Power Plants Plant chimney (GB13223-2011) Yunhe Concentrated Emission Standard of Power Air pollutant Smoke emission Within the Air Pollutants for Generation through 1 factory 1.72 17.83 360 NoThermal Power Plants Plant chimney (GB13223-2011) Yudean Yunhe Concentrated Emission Standard of Power Air pollutant SO emission Within the Air Pollutants for 2 through 1 factory 8.06 88.81 2400 NoThermal Power Plants Generation chimney (GB13223-2011) Plant Yunhe Concentrated Emission Standard of Power Air pollutant NO emission 1 Within the Air Pollutants for X through factory 33.95 335.77 2400 NoGeneration Thermal Power Plants Plant chimney (GB13223-2011) Concentrated Emission Standard of Zhanjiang Smoke emission Within the Air Pollutants forElectric Air pollutant through 2 factory 1 36 528 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Zhanjiang Air pollutant SO emission 2 Within the Air Pollutants for Electric 2 through factory 14 390 1320 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Zhanjiang Air pollutant NO emission 2 Within the Air Pollutants for Electric X through factory 35 988 1990.7 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Zhanjiang Zhongyue Air pollutant Smoke emission Within the Air Pollutants for through 2 factory 0.99 17.14 480 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Zhanjiang Air pollutant SO emission Within the Air Pollutants for Zhongyue. 2 through 2 factory 14.80 257.37 1200 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Zhanjiang Air Pollutants for Zhongyue Air pollutant NO emission 2 Within theX through factory 28.48 495.29 1290.08 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Guangqian Air Pollutants for Air pollutant NO emission 3 Within the 11.19 180.96 1312.5 No Company X through factory Thermal Power Plants chimney (GB13223-2011) Huizhou Concentrated Emission Standard of Natural Air Pollutants forAir pollutant Smoke emissionthrough 6 Within the factory 0.22 8.39 242.61 NoGas Thermal Power Plantschimney (GB13223-2011) 712022 Annual Report Concentrated Emission Standard ofHuizhou Natural Air pollutant NO emission Within the Air Pollutants for X through 6 factory 26.58 977 1774.98 NoGas Thermal Power Plantschimney (GB13223-2011) Concentrated Emission Standard ofYuehua Power Air pollutant SO emission 2 Within the Air Pollutants for 2 through factory 0.149 1.586 27.54 NoThermal Power Plants Generation chimney (GB13223-2011) Emission Standard of Yuehua Concentrated NO emission Within the Air Pollutants forPower Air pollutant X through 2 factory 38.297 493.13 1367.55 NoThermal Power Plants Generation chimney (GB13223-2011) Emission Standard of Xinhui Concentrated Air Pollutants for Power Air pollutant Smoke emission 2 Within thethrough factory 0 0.5 85.6 NoThermal Power Plants Generation chimney (GB13223-2011) Emission Standard of Xinhui Concentrated SO emission Within the Air Pollutants forPower Air pollutant 2 through 2 factory 0.12 1.5 45 NoThermal Power Plants Generation chimney (GB13223-2011) Emission Standard of Xinhui Concentrated Power Air pollutant NO emission 2 Within the Air Pollutants for X through factory 13.36 303.5 1104 NoThermal Power Plants Generation chimney (GB13223-2011) Concentrated Emission Standard ofTumushuk e Thermo Air pollutant Smoke emission Within the Air Pollutants for electric through 2 factory 2.072 25.28 135 NoThermal Power Plants chimney (GB13223-2011) Tumushuk Concentrated Emission Standard of e Thermo SO emission Within the Air Pollutants forelectric Air pollutant 2 through 2 factory 14.572 175.56 474 NoThermal Power Plants Co. Ltd chimney (GB13223-2011) Emission Standard of Tumushuk Concentrated e Thermo Air pollutant NO emission 2 Within the Air Pollutants for X 27.451 329.21 675 No electric through factory Thermal Power Plantschimney (GB13223-2011) Concentrated Emission Standard of Shajia C Air pollutant Smoke emission Within the Air Pollutants for through 3 factory 2.16 59.56 277.8 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Shajiao C Air pollutant SO emission Within the Air Pollutants for 2 through 3 factory 12.51 345.66 972.3 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Shajiao C Air pollutant NO emission 3 Within the Air Pollutants for X through factory 32.66 902.4 1389 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Huadu Smoke emission Within the Air Pollutants forCompany Air pollutant through 3 factory 5 0.1083 92.39 NoThermal Power Plants chimney (GB13223-2011) Concentrated Emission Standard of Huadu Air pollutant SO emission 3 Within the Air Pollutants for Company 2 through factory 20 0.2225 6.7 NoThermal Power Plants chimney (GB13223-2011) Huadu Air pollutant NOX Concentrated 3 Within the 50 Emission Standard of 87.5777 586.6 No 722022 Annual Report Company emission factory Air Pollutants for through Thermal Power Plants chimney (GB13223-2011) Zhanjiang Concentrated Emission Standard of Biomass Smoke emission Within the Air Pollutants forAir pollutant through 2 factory 8 26.6 80.94 无Power Thermal Power Plants Generation chimney (GB13223-2011) Zhanjiang Concentrated Emission Standard of Biomass SO emission Within the Air Pollutants forAir pollutant 2 through 2 factory 8 33.8 183 NoPower Thermal Power Plants Generation chimney (GB13223-2011) Zhanjiang Concentrated Emission Standard of Biomass NO emission Air Pollutants forAir pollutant X through 2 Within the factory 120 293.6 397 NoPower Thermal Power Plants Generation chimney (GB13223-2011) Treatment of contaminants In 2022 the company took the large-scale development of new energy and energy conservation and carbon reduction as an important starting point to accelerate the construction of ecological civilization and pollution prevention and control and continuously improvedthe energy security and clean and low-carbon levels and all emission indicators were better than the industry average. The company adhered to the goal of building a resource-saving and environment-friendly enterprise and step-by-step actively promoted the upgrading and transformation of existing coal-fired generator sets bya planned manner through the formulation and implementation of measures such as energy consumption management improvement operation optimization equipment management maintenance and technological transformation and strived to reduce the emission intensity of coal-fired units.Emergency plan for emergency environmental incidents Combining with the Environmental Protection Law of the People's Republic of China and the Opinions of the Ministry of Environmental Protection on Strengthening Environmental Emergency Management Work and other laws and regulations on the monitoring of environmental risks the company’s subordinate power generation enterprises have formulated the Emergency Plan for Emergency Environmental Incidents according to their actual conditions which has standardized and improved the handling of emergent environmental events from the aspects of environmental accident risk analysis emergency command organization and responsibilities disposal procedures and disposal measures improved the ability to respond to unexpected environmental events and ensured that after an outbreak of an environmental incident the company can organize emergency rescue work in a timely orderly and efficient manner to prevent pollution of the surrounding environment minimize the damage and social harm caused by the incident maintain social stability and protect public health and property safety.Environmental self-monitoring program During the reporting period the company’s subordinate power generation companies organized annual environmental self-monitoring programs in accordance with the national Administrative Measures on Automatic Monitoring of Pollution Sources and other laws and regulations and conducted self-monitoring of the environment in accordance with the monitoring program and announced its own monitoring results in Guangdong Province's key pollution source regulatory information platform and the national pollution source monitoring information and sharing platform. Both the announced rate and completion rate had reached 100%.Investment in environmental governance and protection and payment of environmental protection tax 732022 Annual Report In 2022 The company purchased desulfurization and denitration materials totaling about 297.7089 million yuanThe company paid environmental protection tax of 20.78 million yuan.Measures taken to reduce their carbon emissions during the reporting period □Applicable □Not applicable In 2022 the company added a total of 19 new energy projects including 6 wind power projects and 13 photovoltaic projects with a total installed capacity of 551000 kilowatts which’s expected to contribute about 1.027 billion kilowatt-hours of clean energy per year saving about 321000 tons of standard coal and reducing carbon dioxide emissions by about 863700 tons equivalent to recreating 2183 hectares of forest; it added 1 new gas power project with a total installed capacity of 920000 kilowatts and it’s expected to have an annual on-grid electricity of more than 3.8 billion kilowatt hours. Compared with coal-fired power plants it can save about 440000 tons of standard coal consumption per year reduce carbon dioxide emissions by about 1.76 million tons and provide about 8.15 million GJ of annual heat which’s of great significance for optimizing the regional energy structure and layout and promoting the company to build a clean low-carbon safe and efficient energy system. Meanwhile the company actively promoted the high-quality development of coal power actively carried out energy-saving and carbon-reduction transformation formulated an action plan for energy conservation and efficiency improvement centered on the steam turbine flow transformation for 15 units of 600000 kW grade and above and strived to reduce the coal consumption for coal-fired power units. In 2022 1 steam turbine flow transformation has been completed 4 units have entered the equipment manufacturing stage and it’s planned to implement the transformation in the second half of 2023 as well as the other 10 units will be completed by the end of 2025 and each unit is expected to save 8~10 g/kWh of coal after the completion of the transformation.Administrative penalties for environmental problems during the reporting period None Other environmental information that should be disclosed None.Other environmental protection related information None The company shall comply with the disclosure requirements of power-related industries in the Guideline No.3 for Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure. 1. The company strictly abides by the Environmental Protection Law of the People's Republic of China Air Pollution Prevention Law of the People's Republic of China Water Pollution Prevention Law of the People's Republic of China and Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Solid Waste and the current environmental protection policies and regulations have no impact on the company. In 2022 the operating expenses required by the company's thermal power plants to implement environmental protection policies and regulations are mainly to purchase limestone and denitration materials totaling about RMB 297.7089 million. 2. In 2022 according to the standard the coal consumption for comprehensive power supply of the company's thermal power plants is 302.85 g/kWh of coal the sulfur dioxide emission performance value is 0.048g/kWh nitrogen oxide emission performance value is 0.120g/kWh and soot emission performance value is 0.006g/kWh.Where the commissioning rate of desulfurization device is 100% and the average desulfurization efficiency is 99.21%; The average operation rate of denitration device is 99.82% and the average denitration efficiency is 89.39%; The average operation rate of wet electric dust removal is 99.98% and the average dust removal 742022 Annual Report efficiency is 99.84%.Information related to environmental accidents of the listed company In 2022 there were no environmental accidents in the company.II. Social responsibilities For details of the company's social responsibility report please refer to the Social Responsibility Report 2022 published by the company on CNINF (http://www.cninfo.com.cn) III. Consolidate and expand the achievements of poverty alleviation and rural revitalization In 2022 the company conscientiously implemented the national rural revitalization strategy and its subordinate units actively carried out consumption assistance in combination with local development and set up a special working group to carry out field visits and assistance invested funds and resources to help rural construction of infrastructure improve rural living standards and help rural revitalization work furtherelevated. 1. Shaoguan Power Generation company’s Counterpart-assistance to Ruyuan Dongping Town In 2022 Shaoguan Power Generation company vigorously promoted the consumption assistance strictly abided by the bottom line of not letting returning to poverty on a large scale to be happened strengthened the dynamic monitoring of preventing poverty return reasonably formulated assistance project plans and soundly did well in consolidating and expanding the achievements of poverty alleviation and effective linking of rural revitalization.The company's labor union actively carried out consumption assistance procurement activities expanded consumption assistance channels broadened the sales channels of local agricultural and sideline products and increased farmers' income. So far the cumulative consumption assistance has been more than 160000 yuan effectively solving the problem of farmers' troublesome of income increasing and laying a solid foundation for the industrial revitalization of Dongping Town. 2. Zhanjiang Electric Power company’s Counterpart-assistance to Xuwen Xilian Town In 2022 Zhanjiang Electric Power company resolutely implemented the national rural revitalization strategy.As always it helped the rural revitalization of Xilian Town and practiced the responsibility of state-owned enterprises. The staff of the company stationed in Xilian Town to help the town and support the village were courageous to take responsibility actively planned measures according to local conditions soundly implemented the work of rural revitalization in detail and as the main force participated in the preparation of the overall planning plan of Xilian Town from 2021 to 2026. The work results won the "Excellent Award" of Excellent Town Rural Revitalization Planof Guangdong Provinceinthe 2022. In addition the company's labor union helped purchase 303 boxes of dried golden pomfret by consumption assistance effectively helping the people who were lifted out of poverty to expand the sales channels of agricultural and marine products leading the people in the poverty alleviation areas to increase income and being conducive rural revitalization. 3. Tai Pu Power Generation company’sCounterpart-assistance to Huilai Jinghai Town 752022 Annual Report In order to do a good job in helping towns and villages Tai Pu Power Generation company selected Comrade Guo Jie deputy general manager of the company stationed as the first secretary of the village and a member of the township help and support team made pairing-off assistance to help Jinghai Town Huilai County Jieyang City and actively promoted the rural revitalization. On the Guangdong Poverty Alleviation Day in 2022 the company actively carried out poverty alleviation and relief activities raising a total of 63200 yuan to support rural revitalization. 4. Zhongyue Energy company's Counterpart-assistance to Leizhou Jijia Town In 2022 the rural revitalization team dispatched by Zhanjiang Zhongyue Energy company to Jijia Town Leizhou Zhanjiang with the theme of rural industry revitalization assistance carried out special researchmainly aimed at integrating cooperation of land resources and solving existing problems and holding discussions and exchanges with village committee cadres and villagers. On the basis of respecting the will of the masses it proposed to establish land cooperatives that farmers invest in by scattered lands and select the promising projects to actively explore "land shareholding + large-scale planting" "decentralized production + unified operation" "large households lead small households professional households leadindividualfarmers" and other development models to continuously enhance the vitality and strength of collective economic development. 5. Maoming Thermal Power company Counterpart-assistance to Xiaoliang Town Jijia Town Leizhou In the work of helping rural revitalization Maoming Thermal Power Plant selected a party-member cadre as a village-based team member stationed to Xiaoliang Town Dianbai District to carry out rural revitalization and assistance work. In 2022 the company donated a total of 122570 yuan to Xiaoliang Town Dianbai Districtfor rural revitalization related work such as the treatment of the living environment of Xiaoliang Town and the help of monitoring poverty return households. Meanwhile through the field research the company planned to build a photovoltaic compound project in Xiaoliang Town. It has registered and established Maoming Electric White Intelligent New Energy Co. Ltd in Dianbai District and substantially carried out the preliminary work the project has been approved by Maoming Power Supply Bureau with the preliminary connect opinion and it has been included in Maoming City's key construction projects in 2023 by Maoming Development and Reform Bureau. 6. Yuefeng New Energy's Counterpart-assistance to Nanxiong Baishun Town In order to actively promote the integrated development of new energy development and rural revitalization in 2022 Shaoguan Nanxiong Yuefeng New Energy-a subsidiary of Provincial Wind Electronics company signed a new energy cooperative development framework agreement with the Nanxiong People's Government to help in local rural revitalization by developing local rooftop photovoltaic ground distributed photovoltaic and ground distributed wind power projects. Yet the preliminary work of the pilot project of rural revitalization of distributed wind power in Nanxiong Baishun Town was started. 762022 Annual Report VI. Important Events I. Commitments to fulfill the situation 1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company shareholder actual controller acquirer director supervisor senior management personnel and other related parities.□ Applicable √Not applicable There is no commitment that has not been fulfilled by actual controller shareholders related parties acquirers of the company 2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the forecast period the company has assets or projects meet the original profit forecast made and the reasons explained □ Applicable √ Not applicable II. Particulars about the non-operating occupation of funds by the controlling shareholder □ Applicable √ Not applicable No such cases in the reporting period.III. Illegal provision of guarantees for external parties □ Applicable √ Not applicable No such cases in the reporting period.IV. Explanation of the Board of Directors on the latest "Non-standard Audit Report" □ Applicable √ Not applicable V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors and supervisory board □ Applicable √ Not applicable VI. Explain change of the accounting policy accounting estimate and measurement methods as compared with the financial reporting of last year.√ Applicable □ Not applicable In 2021 the Ministry of Finance issued the Notice on Printing and Distributing the "Interpretation of Accounting Standards for Business Enterprises No. 15" (hereinafter referred to as "Interpretation No. 15"). The company implemented the provisions related to the trial operation sales of fixed assets in the Interpretation No. 15 from January 1 2022 and retroactively adjusted the trial operation sales revenue incurred between January 1 2021 and the implementation date. The comparative financial statements for 2021 were restated accordingly. The above accounting policy changes have no impact on the balance sheet as of January 1 2021. 772022 Annual Report The company has adopted the above notice and the Q&A on the Implementation to prepare the 2022 annual financial statements and the above amendments have no significant impact on the company's financial statements except for the relevant provisions on the trial operation and sales of fixed assets.VII.Explain change of the consolidation scope as compared with the financial reporting of last year.√ Applicable □ Not applicable Nature New investment amount Paid-in capital at the Proporti Name in this period (Yuan) end of period(Yuan) on (%) Acquired Yudean Jinxiu intelligence Energy Co. Photovoltaic power Ltd. generation 2621800 2913114 Newly 90% established Guangdong Yudean Huibo New Energy Photovoltaic power Co. Ltd. generation 15492360 15492360 Newly 100% established Nanjing Linyuan Senhai New Energy Photovoltaic power Co. Ltd. generation 120495920 120495920 100% Purchase Photovoltaic power Nanjing Senhong New Energy Co. Ltd. generation 120495920 120495920 100% Purchase Tumushuke Yudean Hanhai New Energy Photovoltaic power 324050000 324050000 NewlyCo. Ltd. generation 100% established Photovoltaic power Taishan Dongrun New Energy Co. Ltd. generation 45063020 45063020 100% Purchase Photovoltaic power Newly Meizhou Xingyue New Energy Co. Ltd. generation 9977500 9977500 100% established Guangdong Yudean Huixin Thermal Natural gas power Power Co. Ltd. generation 104975000 123500000 Newly 100% established Guangdong Yudean Maoming Natural Natural gas power Newly Gas Thermal Power Co. Ltd. generation 115345000 118345000 85% established Guangdong Shaoguan Yudean New Photovoltaic power Newly Energy Co. Ltd. generation 33473000 33473000 100% established Yudean Shashe Intelligence Energy Co. Photovoltaic power Ltd. generation 1206110470 1206110470 Newly 100% established Laixi Xinguangyao New Energy Photovoltaic power Technology Co. Ltd. generation 32923000 33255555 99% Purchase Jiuzhou New Energy（Zhaoqing）Co. Photovoltaic power Ltd. generation 39000000 40680000 100% Purchase Xiangtan Xiangdian Changshan Wind Wind power Power Generation Co. Ltd. generation 89524003 80000000 100% Purchase Yunfu Luoding Yudean New Energy Photovoltaic power Newly Co. Ltd. generation 1844520 1844520 100% established VIII. Engagement/Disengagement of CPAs CPAs currently engaged Name of the domestic CPAs PWC Certified Public Accountants (special generalpartnership) Remuneration for domestic accounting firm (RMB 0'000) 799 Successive years of the domestic CPAs offering auditing services 7 Name of CPA Li Xiaolei Fan Xin Continuous years of audit services of certified public accountants of domestic public accounting firms Li Xiaolei(2 years) Fan Xin( 1 year) Has the CPAs been changed in the current period 782022 Annual Report □ Yes √ No Description of the CPAs financial advisers or sponsors engaged for internal control auditing √ Applicable □Not applicable In the report year the company engaged PWC Certified Public Accountants (special general partnership)as the certified public accountants and internal control audit body in 2022. The audit remuneration was RMB 7.99 million IX. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report □Applicable √ Not applicable X. Relevant Matters of Bankruptcy Reorganization □Applicable √ Not applicable No such cases in the reporting period.XI. Matters of Important Lawsuit and Arbitration □Applicable √ Not applicable No such cases in the reporting period.XII. Situation of Punishment and Rectification □Applicable √ Not applicable No such cases in the reporting period.XIII. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers □Applicable √ Not applicable XIV. Material related transactions 1. Related transactions in connection with daily operation √Applicable □ Not applicable For related party transactions related to daily operations during the reporting period please see "7. Other Major Related Party Transactions" 2. Related-party transactions arising from asset acquisition or sale □Applicable √ Not applicable No such cases in the reporting period. 3. Related party transactions of joint outbound investment □Applicable √ Not applicable No such cases in the reporting period. 4. Credits and liabilities with related parties □Applicable √ Not applicable No such cases in the reporting period. 792022 Annual Report 5. Transactions with related finance company especially one that is controlled by the company √ Applicable □Not applicable Deposit business Related party Relationship Maximum Deposit Beginning The amount of this period The amount daily interest rate balance(RM of this period deposit range B '0000) Total deposit Total deposit Total amount limit(RMB amount amount is withdrawn '0000) (RMB (RMB for this '0000) '0000) period(RMB '0000) Guangdong Controlled Energy by Group Guangdong Finance Co. Energy 1100000 0.25%-0.35% 647482 11814214 11587634 874062 Ltd. Group Co.Ltd.Loan business Related party Relationship Beginning The amount of this period balance(RM Loan B '0000) Total loan Total Ending limit(RMB Loant interest amount of repayment '0000) rate range balance(RM the current amount of period(RMB the current B '0000) '0000) period(RMB'0000) Guangdong Controlled Energy by Group Guangdong Finance Co. Energy 3500000 2.7%-4.11% 934417 1370000 1313608 990809 Ltd. Group Co.Ltd.Credit extension or other financial services Related party Relationship Business type Total amount(RMB Actual amount '0000) incurred(RMB '0000) Guangdong Communications Controlled by the same Group Finance Co. parent company Credit extension 3500000 990809 Ltd 6. Transactions between the financial company controlled by the company and related parties □ Applicable √Not applicable There is no deposit loan credit or other financial business between the financial company controlled by the company and related parties. 7. Other significant related-party transactions √ Applicable □Not applicable （1）2022 daily related transactions were carried out after examination and approval by 2022 first provisional shareholders' general meeting. Refer to (5) Related transactions of XII. Relationship between related parties and the transactions between them of the Financial Report of this report for details. (2) On January 20 2022 the first meeting of the Tenth Board of Directors of the company reviewed and approved the Proposal on Daily Related Party Transactions between the company and Guangdong Energy Group Co. Ltd.in 2022 the Proposal on Signing the between the company and Guangdong Yudean Finance Co. Ltd. the Proposal on Signing the between the company and Guangdong Yudean Financial Leasing Co. Ltd. The above related party transactions were reviewed and approved at the company's first provisional general meeting of shareholders in 2022. （3）On August 29 2022 the 8th meeting of the Tenth Board of Directors of the company reviewed and approved on the Proposal Concerning Risk Assessment Report on Guangdong Energy Finance Co. Ltd. for the First Half of 2022（ 4）On September 162022In order to increase the scale of clean coal power and realize the sustainable development of the company the 9th meeting of the Tenth Board of Directors of the company reviewed and approved on the Proposal on the Investment and Construction of the 2 × 1000MW Units Project of the No. 3 and No.4 Units of Maoming Bohe Power Plant and Proposal on Investment and Construction of Huilai Power Plant Unit 5 and Unit 6 Expansion Project (2×1000MW Project) Agree to Bohe Energy company to invest in the construction of 2×1000MW unit of No.3 and 4 of Maoming Bohe Power Plant. The project is 2×1000MW ultra-supercritical secondary reheat coal-fired generating unit with a total investment of 7483.51 million yuan; Jinghai Power Generation company agrees to invest in the expansion project of Unit 5 and 6 units of Huilai Power Plant. The project is 2×1000MW ultra-supercritical secondary reheat coal power unit with a total investment of 8049.77 million yuan.Website for temporary disclosure of the connected transaction Announcement Date of disclosure Website for disclosure Estimates announcement of the Daily January 222022 http//www.cninfo.com.cn.Related Party Transactions of 2022 Announcement of Related Transactions on Signing of the Financial Services Framework Agreement Framework Agreement on Financing Leasing January 222022 http//www.cninfo.com.cn.Cooperation and Framework Agreement on Cooperation in Insurance and Risk Management Services The 9th meeting of the Tenth Board of August 31 2022 http//www.cninfo.com.cn.Directors The 8th meeting of the Tenth Board of September 172022 http//www.cninfo.com.cn.Directors XV. Significant contracts and execution 1.Entrustments contracting and leasing （1）Entrustment √ Applicable □ Not applicable Statement of Trusteeship Situation : According to the statement of Guangdong Energy Group on fulfilling relevant matters and to avoid the horizontal competition and fulfill the relevant commitment of the horizontal competition the company signed Stock Trusteeship Agreement with Guangdong Energy Group wherein the shareholder's rights within the trusteeship 812022 Annual Report range except the ownership right of earning and right of disposition will be trusted to the company The custody fee collected from each company directly holding the first-class target of Guangdong Energy Group is RMB 100000/year; The custody fee collected from each company indirectly holding the secondary target is RMB 50000/year. published by the company in China Securities Daily Securities Times and http://www.cninfo.com.cn on January 13 2018(Announcement No.2018-04). the custody fee actually collected by the company was RMB 1.6981 million.Gains/losses to the company from projects that reached over 10% in total profit of the company in reporting period □Applicable √ Not applicable No gains or losses to the company from projects that reached over 10% in total profit of the company in reporting period (2) Contract □ Applicable √ Not applicable No any contract for the company in the reporting period. (3) Lease □ Applicable √ Not applicable Note As the lessee the company has incurred a rental fee of RMB 27805836 in this year. 822022 Annual Report Project which generates profit or loss reaching over 10% of total profits of the company during the Reporting Period □ Applicable √ Not applicable There were no leases with a 10% or greater impact on the company’s gross profit in the Reporting Period. 2.Significant Guarantees √Applicable □ Not applicable In RMB 10000 Guarantee of the company for the controlling subsidiaries (Exclude controlled subsidiaries) Relevant Date of Guarantee disclosure Complete Name of the date/No. of Amount happening Actual forof (Date of mount of Guarantee type Guaranty（If Counter-guarantee（Ifcompany any any Guarantee termimplementation associatedthe Guarantee ） ）signing guarantee or not partiesguaranteed agreement) (Yes or no) amount Guangdong Yudean Yangjiang Offshore wind Guangdong Energy power Co. Ltd. provides 23 years and 9 October 292020 200000 November 192020 200000 Guaranteeing of No Yes Group Co. Ltd. joint liabilities. joint and several liability months guarantee counter- guarantee Guangdong Yudean Yunnan Baoshan Yangjiang Offshore wind Binlangjiang Hydroelectricity December Guaranteeing of power Co. Ltd. provides4350 November 302007 0 15 years No No Development Co. 192007 joint liabilities. joint and several liability Ltd. guarantee counter- guarantee Guangdong Yudean Yunnan Baoshan Yangjiang Offshore wind Binlangjiang Hydroelectricity May 272009 9367 June 222009 0 Guaranteeing of power Co. Ltd. provides 18 years No No Development Co. joint liabilities. joint and several liability Ltd. guarantee counter- guarantee 832022 Annual Report Xinjiang Jintai Electric Power Co. Not applicable 3775 December 202019 0 Guaranteeing ofjoint liabilities. 3 Years No No Ltd.Total amount of approved external Total actually amount of guarantee in the report period(A1) 0 external guarantee in the report 29607period(A2) Total amount of approved external Total actually amount of guarantee at the end of the report 425459 external guarantee at the end of 200000 period(A3) the report period(A4) Guarantee of the company for its subsidiaries Relevant Date of Guarantee disclosure happening Actual Complete for Name of the date/No. of Amount company of (Date of mount of Guarantee typeGuaranty（If Counter-guarantee（If implementathe Guarantee any） anyGuarantee term tion associated） signing guarantee or not partiesguaranteed agreement) (Yes or no) amount Zhanjiang Wind Power Generation Guaranteeing ofApril 292009 18572 October 92010 4872 18 years No No Co. Ltd. joint Total of guarantee for subsidiaries 300000 Total of actual guarantee forapproved in the period(B1) subsidiaries in the period (B2) -210 Total of guarantee for subsidiaries 441536 Total of actual guarantee forapproved at period-end(B3) subsidiaries at period-end(B4) 4872 Guarantee of the subsidiaries for the controlling subsidiaries Relevant Date of Guarantee disclosure Amount happening Actual Complete for Name of the date/No. of company of (Date of mount of Guarantee typeGuaranty（If Counter-guarantee（If implementathe Guarantee any） any Guarantee term ） tion associated signing guarantee parties guaranteed or not agreement) (Yes or no) amount The company’s total guarantee(i.e.total of the first three main items) Total amount of guarantee Total guarantee quota approved in the actually incurred in the reporting period A1+B1+C1 300000 29397（ ） reporting period （A2+B2+C2） 842022 Annual Report Total balance of the actual Total guarantee quota already approved guarantee at the end of the at the end of the reporting period 866995 204872 reporting period （A3+B3+C3） （A4+B4+C4） The proportion of the total amount of actually guarantee in the net assets 10.12%of the company (that is A4+B4+C4）% Including： Amount of guarantees provided for shareholders the actual controller and their related parties (D) 200000 Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset ratio over 70% (E) 0 Proportion of total amount of guarantee in net assets of the company exceed 50% 0（F） Total amount of the three kinds of guarantees above (D+E+F) 200000 Note: 1. The new guarantee added to Xinjiang Jintai Electric Power Co. Ltd in 2021 by the company was a joint and several liability guarantee for Xinjiang Jintai Electric Power Co. Ltd due to the company's acquisition of Tushi Thermal Power company. The payment was settled in May 2022 and the guarantee obligation was released; 2. The company's joint and several liability guarantee for Yunnan Baoshan Binglangjiang Hydropower Development Co. Ltd has been lifted in December 2022. 852022 Annual Report 3. Finance management on commission (1)Situation of Entrusted Finance □ Applicable √ Not applicable No any Entrusted Finance for the company in the reporting period.. （2）Situation of Entrusted Loans □ Applicable √ Not applicable No any Entrusted loans for the company in the reporting period.. 4. Other significant contract □ Applicable √ Not applicable No other significant contracts for the company in reporting period.XVI. Explanation on other significant events √ Applicable □Not applicable Summary of important matters Name Website Date of for disclosure disclosur e In order to implement the deployment of aid to Xinjiang deepen strRateesgoilcutions of the Second March http//ww cooperation with key regions further optimize the power supply structure and inmcreeeatsieng of the Tenth Board 262022 w.cninfo.the proportion of clean energy the company's board of directors agreed to the company's wholly-owned establishment of Tumusuke Yudean Hanhai New Energy Coo.f dLitrdectors by com.cn.(hereinafter referred to as "Hanhai New Energy company”) to invest in the constrCucotriroenspondence of 2022 of a 400000-kilowatt photovoltaic power generation project in the 45th Regiment of the Third Division of the Xinjiang Production and Construction Corps. The total investment of the project is 2226851400 yuan and the capital is set at 445370000 yuan according to 20% of the total project investment which will be solved by the company's capital increase to Hanhai New Energy company in batches.In order to meet the heat load demand of Yunfu Industrial Park and peripheralResolutions of the 6th April http//ww enterprises further optimize the company's power supply structure and promotemeeting of the Tenth Board 222022 w.cninfo.the company's sustainable development the board of directors agrees to invest in the construction of Yunhe Power Generation company Natural Gas Cogenerationof directors com.cn.Project (2×460MW) and Guangdong YudeanYunhe Co. Ltd. is responsible for the specific construction and operation of the project. The total investment of the project is 2809.70 million yuan (including the heating network project) and the project capital is calculated as 561.94 million yuan according to 20% of the total project investment. The company invests 505.75 million yuan according to the proportion of 90% equity ratio. The capital required for the project will be solved by the company's capital increase to Yunhe Power Generation company in batches according to the actual construction progress and capital needs of the project.In order to improve the power supply guarantee capacity improve the scaleResolutions of the 6th April http//ww of advanced clean coal-fired power generation and promote the sustainablemeeting of the Tenth Board 222022 w.cninfo.development of the company the Ninth Meeting of the Tenth Board of Directors deliberated and agreed on the following matters: 1. Guangdong Yudean Dabuof directors com.cn.Power Generation Co. Ltd. invested in the construction of Guangdong Yudean Dabu Power Plant Phase II Project with a total investment of RMB 8122320000; 2. Guangdong Yudean Bohe Energy Co. Ltd. invested in the construction of No.3 and No.4 2×1000MW units of Maoming Bohe Power Plant which is a 2×1000MW ultra-supercritical secondary reheat coal-fired generating unit with a total investment of RMB 7483.51 million; 3. Guangdong Yudean Jinghai Power Generation Co. Ltd. invested in the construction of the expansion project of No.5 and No.6 units in Huilai Power Plant which is a 2×1000MW ultra- supercritical secondary reheat coal-fired generating unit with a total investment of 862022 Annual Report RMB 8049.77 million.In order to meet the electricity load growth in Jieyang City and the heat load demand of Dananhai Petrochemical Industrial Zone and further increase the proportion of clean energy of the company the board of directors agrees to invest in the construction of the Jieyang Dananhai Natural Gas Cogeneration Project (2×480MW) and Guangdong Yudean Dananhai Smart Energy Co. Ltd.-a wholly-owned subsidiary-is responsible for the specific construction and operation of the project. The total investment of the project is 2855.45 million yuan (including the heating network project) and the project capital is calculated as 571.09 million yuan according to 20% of the total project investment. The capital required by the project will be solved by the company's capital increase to Dananhai Smart Energy company in batches according to the actual construction progress and capital needs of the project.In order to further increase the company's clean energy ratio and furtherResolutions of the 8th August 31 http//ww optimize the power supply structure the board of directors agreed that themeeting of the Tenth Board 2022 w.cninfo.company will increase capital to Guangdong Wind Power Co. Ltd. to invest in the construction of two photovoltaic projects of 300MW in Qingshuihe in Innerof directors com.cn.Mongolia and 200MW Phase I of Zhuhai Sanzaoin which RMB 314.55 million will be invested for the Qingshuihe 300MW project and RMB 209.7758 million will be invested for the 200MW project of Zhuhai Sanzao Phase I and the capital will be increased in batches according to the actual progress of the project and capital needs.In order to improve the power supply guarantee capacity improve the scale Resolutions of the 9th September http//ww of advanced clean coal-fired power generation and promote the sustainable development of the company the Ninth Meeting of the Tenth Board of Directors meeting of the Tenth Board 172022 w.cninfo.deliberated and agreed on the following matters: 1. Guangdong Yudean Dabu of directors com.cn.Power Generation Co. Ltd. invested in the construction of Guangdong Yudean Dabu Power Plant Phase II Project with a total investment of RMB 8122320000; 2. Guangdong Yudean Bohe Energy Co. Ltd. invested in the construction of No.3 and No.4 2×1000MW units of Maoming Bohe Power Plant which is a 2×1000MW ultra-supercritical secondary reheat coal-fired generating unit with a total investment of RMB 7483.51 million; 3. Guangdong Yudean Jinghai Power Generation Co. Ltd. invested in the construction of the expansion project of No.5 and No.6 units in Huilai Power Plant which is a 2×1000MW ultra- supercritical secondary reheat coal-fired generating unit with a total investment of RMB 8049.77 million In order to fully integrate and enhance the company's management strength Resolutions of the 11th December http//ww and level in Xinjiang and coordinate the development construction production meeting of the Tenth Board 12022 w.cninfo.and operation of new energy and traditional energy in Xinjiang after deliberation of directors com.cn.at the Eleventh Meeting of the Tenth Board of Directors of the company it was agreed to establish a wholly-owned Xinjiang Regional company in Urumqi Xinjiang Uygur Autonomous Region (the name of the company will be subject to industrial and commercial registration) with the initial registered capital of RMB 300 million. In order to further increase the proportion of clean energy and smoothly Resolutions of the 11th December http//ww promote the development strategy after deliberation at the Eleventh Meeting of meeting of the Tenth Board 12022 w.cninfo.the Tenth Board of Directors it was agreed to increase the capital of Guangdong of directors com.cn.Wind Power Generation Co. Ltd. by RMB 380.07 million which will be used to invest in the construction of 50MW Photovoltaic Power Generation Project of Lianjiang Changshan Farm 20MW Photovoltaic Power Generation Project of Lianjiang Liming Farm 50MW Photovoltaic Power Generation Project of Lianjiang Dongsheng Farm and the acquisition of 100% equity of Jianhao Photovoltaic Technology Co. Ltd. of Qinglong Manchu Autonomous County.The capital will be increased in batches according to the actual progress of the project and the capital demand.In order to speed up the development of new energy increase the proportion Resolutions of the 11th December http//ww of clean energy and optimize the power supply structure after deliberation at the meeting of the Tenth Board 12022 w.cninfo.Eleventh Meeting of the Tenth Board of Directors of the company it was agreed of directors com.cn.that a wholly-owned subsidiary Yudean Shache Comprehensive Energy Co. Ltd.(hereinafter referred to as "Yudean Shache company") as the main investor would invest in the construction of a 2 million KW light storage integration project of Guangdong Energy Shache County (with a photovoltaic construction scale of 872022 Annual Report 2000MW and an energy storage construction scale of 500MW/2000MWh). The total investment of the project is RMB 12917064600. Matching transaction click transaction inquiry transaction bidding transaction and negotiation transaction.XVII. Significant event of subsidiary of the Company □ Applicable √Not applicable 882022 Annual Report VII. Change of share capital and shareholding of Principal Shareholders I. Changes in share capital 1. Changes in share capital In shares Before the change Increase/decrease（+，-） After the ChangeAmount Proporti Capitalizatio on Share Bonusallotment shares n of common Other Subtotal Quantity Proportio reserve fund n I. Share with conditional subscription 1897966117 36.15% -2830 1897963287 36.15% 1. State-owned shares 2. State-owned legal person shares 1893342621 36.06% 31896 1893374517 36.06% 3.Other domestic shares 4623496 0.09% -34726 4588770 0.09% Of which：Domestic legal person shares 4620666 0.09% -1084896 3535770 0.07% Domestic natural person shares 2830 0% 1050170 1053000 0.02% 4.Foreign shares Of which：Foreign legal person shares Foreign natural person shares II. Shares with unconditional subscription 3352317869 63.85% 2830 3352320699 63.85% 1.Common shares in RMB 2553909869 48.64% 2830 2553912699 48.64% 2.Foreign shares in domestic market 798408000 15.21% 798408000 15.21% 3.Foreign shares in foreign market 4.Other III. Total of capital shares 5250283986 5250283986 Reasons for share changed √ Applicable □ Not applicable 1.On February 2 2022 the lock-up period of the 2830 restricted shares held by Mr.Wen Lianhe aformer director of the company has expired it has been converted into tradable shares whthout restiiction .therefore the number of restricted shares of the company has also increased accordingly; 2.231896 A restricted shares held by the Trade Union Committee of Guangdong Prison Administration were changed to be held by Guangdong Energy Group Co. Ltd. due to the advance repayment procedures for the share-trading reform; 3.In November 2022 according to the ruling of the People's Court of Changsha County Hunan Province ([2022] X0121Z No. 7422) the 1053000 A restricted shares held by Guangdong Rural Telephone company were changed to be held by Luo Guoliang. By the end of 2022 the share transfer has been completed; Approval of Change of Shares □Applicable √Not applicable Ownership transfer of share changes Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable 892022 Annual Report to common shareholders of company in latest year and period □ Applicable √ Not applicable Other information necessary to disclose for the company or need to disclosed under requirement from security regulators □ Applicable √Not applicable 2. Change of shares with limited sales condition √ Applicable □ Not applicable In RMB Number of Number of Number of restricted restricted Number of restricted restricted Reasons forShareholder Release date ofshares at the shares inincreased this shares released shares at the sales beginning in this period end of the restriction sales restriction period period Wen Lianhe 2830 0 2830 0 Change ofdirector February 22022 Total 2830 0 2830 0 -- -- Ⅱ.Issuing and listing 1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period □Applicable √Not applicable 2.Change of asset and liability structure caused by change of total capital shares and structure □Applicable √Not applicable 3.About the existing employees’ shares □Applicable √Not applicable Ⅲ.Shareholders and actual controlling shareholder 1. Number of shareholders and shareholding In Shares Total The totalTotal number of number of Total preferred common shareholder preferred s at the end shareholders at the end ofsharehold shareholder the month from the date of ers at the 83855 of the 82700 0s voting disclosing the annual 0 end of the month from rights (if report(if any)(See Notes reporting the date of any)(See 8) period disclosing Notes 8) Particulars about shares held above 5% by shareholders or top ten shareholders Proporti Number of share Shareholders Nature of on of Number of Changes in Amount of Amount of un- pledged/frozen shareholde shares shares held at reporting restricted restricted shares r held period -end period shares held held State of （%） share Amount State- Guangdong Energy Group owned Co. Ltd. legal 67.39% 3538037181 31896 1893374517 1644662664 person 902022 Annual Report State- Guangzhou Development owned Group Co. Ltd. legal 2.22% 116693602 0 0 116693602 person State- Guangdong Electric Power owned Development Corporation legal 1.80% 94367341 0 0 94367341 person ICBC－First Seafront fund Domestic New Economy flexible Non-State allocation of hybrid owned 0.96% 50593399 50593399 0 50593399 securities investment fund legalperson Domestic ICBC－Caitong value Non-State momentum hybrid securities owned 0.71% 37076754 37076754 0 37076754 investment fund legal person Domestic Zheng Jianxiang Natural 0.50% 26234500 719600 0 26234500 person Domestic ICBC－Qianhai open Non-State source new economy owned 0.45% 23641155 -21076763 0 23641155 flexible allocation of hybrid legal securities investment fund person Domestic ICBC－Caitong growth Non-State preferred hybrid securities owned 0.39% 20214860 20214860 0 20214860 investment fund legal person State- China Securities Finance owned Co. Ltd. legal 0.35% 18246045 -33781100 0 18246045 person VANGUARD TOTAL Overseas INTERNATIONAL Legal 0.30% 15855512 0 0 15855512 STOCK INDEX FUND person Strategy investors or general legal person becomes top 10 shareholders dueto rights issued (if applicable) See Not applicable（Notes 3） The Third largest shareholder Guangdong Electric Power Development Corporation is the Explanation on associated relationship wholly-owned subsidiaries of the largest shareholder Energy Group. These two companies among the aforesaid shareholders have relationships; whether the other shareholders have relationships or unanimous acting was unknown Above shareholders entrusting or entrusted with voting rights or waiving Not applicable voting rights Top 10 shareholders including the special account for repurchase (if any) Not applicable (see note 10) Shareholding of top 10 shareholders of unrestricted shares Share type Name of the shareholder Quantity of unrestricted shares held atthe end of the reporting period Share type Quantity Guangdong Energy Group Co. Ltd. RMB Common1644662664 1644662664 shares Guangzhou Development Group Co. Ltd. 116693602 RMB Common 116693602 912022 Annual Report shares Guangdong Electric Power Development Corporation RMB Common94367341 94367341 shares ICBC－First Seafront fund New Economy flexible RMB Common allocation of hybrid securities investment fund 50593399 50593399shares ICBC－Caitong value momentum hybrid securities RMB Common 3707675437076754 investment fund shares Foreign shares Zheng Jianxiang placed in26234500 26234500 domestic exchange ICBC－Qianhai open source new economy flexible RMB Common 2364115523641155 allocation of hybrid securities investment fund shares ICBC－Caitong growth preferred hybrid securities RMB Common 2021486020214860 investment fund shares Foreign shares placed in China Securities Finance Co. Ltd. 18246045 18246045 domestic exchange Foreign shares VANGUARD TOTAL INTERNATIONAL STOCK placed in 1585551215855512 INDEX FUND domestic exchange Explanation on associated relationship or consistent action among the top 10 shareholders of non-restricted The Third largest shareholder Guangdong Electric Power Development negotiable shares and that between the top 10 Corporation is the wholly-owned subsidiaries of the largest shareholder shareholders of non-restricted negotiable shares and top Energy Group. These two companies have relationships; whether the 10 shareholders other shareholders have relationships or unanimous acting was unknown. Explanation on shareholders participating in the margin trading business(if any )(See Notes 4) Not applicable Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy- back agreement dealing in reporting period.□ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the company have no buy –back agreement dealing in reporting period. 2.Controlling shareholder Nature of Controlling Shareholders: Local state holding Type of Controlling Shareholders: Legal person Name of the Legal Controlling representativ Date of incorporation Organization code Principal business activities shareholder e/Leader Management and sales of the electricity investment construction operation management，electricitypower(Thermal Power)，Guangdong Energy The industry of transportation Group Co. Ltd. Li Zhuoxian August 32001 91440000730486022G resources environmental protection，new source of energyelectricity investment; investment planning and consulting ; information consulting service; sales of production materials.The equity of the controlling shareholder Unknown in other domestic and 922022 Annual Report foreign listed companies held or partly held by it in the report period Change of the actual controller in the reporting period □Applicable √Not applicable No such cases in the Reporting Period. 3．Information about the controlling shareholder of the company Actual controller nature：Local state owned assets management Actual controller type：Legal person Name of the Legal controlling shareholder representative/pe Date of establishment Organization code Principal business activitiesrson in charge State-owned Assets As the special institution directly supervision and subordinate to Guangdong administration Provincial People's Government Commission of / June 262004 114400007583361658 performed the obligation of Guangdong provincial state-asset contributor Provincial People’s entrusted by the provincial Government government.Equity of other domestic/foreign listed company with share controlling and share Unknown participation by controlling shareholder in reporting period Changes of the actual controller in the reporting period □Applicable √Not applicable No Changes of the actual controller in the reporting period Block Diagram of the ownership and control relations between the company and the actual controller The actual controller controls the company by means of trust or managing the assets in other way □Applicable √Not applicable 932022 Annual Report 4.The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the company and its person acting in concert accounts for 80% of the number of shares held by the company □Applicable √Not applicable 5.Particulars about other legal person shareholders with over 10% share held □Applicable √Not applicable 6.Situation of Share Limitation Reduction of Controlling Shareholders Actual Controllers Restructuring Party and Other Commitment Subjects □Applicable √Not applicable IV. Specific implementation of share repurchase during the reporting period Progress in implementation of share repurchase □ Applicable √Not applicable Implementation progress of reducing repurchased shares by centralized bidding □ Applicable √Not applicable 942022 Annual Report VIII. Situation of the Preferred Shares □Applicable √Not applicable The company had no preferred shares in the reporting period. 952022 Annual Report IX. Corporate Bond √ Applicable □ Not applicable I. Enterprise bond □ Applicable √ Not applicable No such cases in the reporting period.II. Corporate bond √ Applicable □ Not applicable 1). Basic information of corporate bonds In RMB Bond name Bond shortname Bond code Issue day Value date Due day Bond balance Interest (RMB '0000) rate Servicing way Trading Public Issuance of Corporate Using simple interest rate on a Bonds to Qualified Investors in yearly basis regardless of 2020 (Phase I) of Guandong 20 Yudean compound interest. Due Shenzhen Electric Power Development 01 149113.SZ April 292020 April 292020 April 292025 1500000000 2.45% payments once a year maturing Stock Co.Ltd. debt at a time. In the final Exchange phase interest is paid together with the principal redemption.Public Issuance of Corporate Using simple interest rate on a Bonds to Qualified Investors in yearly basis regardless of 2021 (Phase I) of Guandong 21 Yudean compound interest. Due Shenzhen Electric Power Development 01 149369.SZ January 272021 January 272021 January 272024 1000000000 3.57% payments once a year maturing Stock Co.Ltd. debt at a time. In the final Exchange phase interest is paid together with the principal redemption.Public Issuance of Corporate Using simple interest rate on a Bonds to Qualified Investors in yearly basis regardless of 2021 (Phase II) of Guandong 21Yudean Shenzhen Electric Power Development 149418.SZ April 282021 April 282021 April 282026 1500000000 3.50% compound interest. Due Stock 02 payments once a year maturing Co.Ltd. Exchangedebt at a time. In the final phase interest is paid together 962022 Annual Report with the principal redemption.Using simple interest rate on a Public Issuance of Corporate yearly basis regardless of Bonds to Professional Investors in 2021 (Phase I) of Guandong 21Yedean 149711.SZ November 242021 November 242021 November 242021 November compound interest. Due Shenzhen Electric Power Development 03 242026 3.41% payments once a year maturing Stock debt at a time. In the final Exchange Co.Ltd. phase interest is paid together with the principal redemption.Using simple interest rate on a Public Issuance of Corporate yearly basis regardless of Bonds to Professional Investors 21Pinghai compound interest. Due Shanghaiin 2021 (Phase I) of Guandong 01 188197.SH June 42021 June 42021 June 42023 200000000 3.57% payments once a year maturing StockHuizhou Pinghai Power debt at a time. In the final exchange Generation Co.Ltd. phase interest is paid together with the principal redemption.During the reporting period interest payment situation 20 Yudean 01 21 Yudean 01 and 21 Yudean 02 are bonds for qualified investors 21 Yudean 03 and 21 Pinghai 01 are bonds for of the company bonds（If any） professional investors.Applicable trading mechanism Matching transaction click transaction inquiry transaction bidding transaction negotiation transaction Whether there are risks and countermeasures forterminating listing transactions（If any) NoOverdue and unpaid bonds □ Applicable √ Not applicable 972022 Annual Report 2). Trigger and implementation of option clauses and investor protection clauses of the issuer or investor □ Applicable √ Not applicable 3).Information of intermediary agency Contact Name of bond Name of intermediary project agency Office Address Name of signing person of accountant intermedia Tel ry agency China Securities Co. 2/F Block B Kaiheng Ltd. (lead principal Center No.2 underwriter/bookkeepin Chaoyangmennei Street Not applicable Liu 010-86451370 g manager/trustee) Dongcheng District Renshuo Beijing 22/F CITIC Securities CITIC Securities Co. Building No.48 Ltd. (joint lead Liangmaqiao Road Not applicable Song underwriter) Chaoyang District Yilan 010-60836755 Public Issuance of Beijing Corporate Bonds to Qualified 23/F R&F Center Investors in 2020 Beijing Zhong Lun Law No.10 Huaxia Road (Phase I) of Firm Zhujiang New Town Not applicable Ling 020-28261689 Guandong Electric Tianhe District Qinghua Power Guangzhou Development 18/F Wang Bin Li Co.Ltd. PricewaterhouseCooper PricewaterhouseCoopers Yanhua（2019）； s Zhongtian Certified Center No.10 Zhujiang Public Accountants West Road Zhujiang Wang Bin GuoBiyu 2018 Wang Bin 020-38192000(Special General New Town Tianhe （ ）； Partnership) District Guangzhou Wang Bin Chen China Junjun（2017） Building 6 Yinhe China Cheng Xin SOHO No.2 International Credit Nanzhugan Hutong Not applicable FangZibin 010-66428877Rating Co. Ltd. Dongcheng District Beijing China Securities Co. 2/F Block B Kaiheng Ltd. (lead principal Center No.2 underwriter/bookkeepin Chaoyangmennei Street Not applicable Liu 010-86451370 g manager/trustee) Dongcheng District Renshuo Beijing 22/F CITIC Securities CITIC Securities Co. Building No.48 Ltd. (joint lead Liangmaqiao Road Not applicable SongYilan 010-60836755Public Issuance of underwriter) Chaoyang District Corporate Bonds Beijing to Qualified Investors in 2021 23/F R&F Center (Phase I) of Beijing Zhong Lun Law No.10 Huaxia Road Liang Guandong Electric Firm Zhujiang New Town Not applicable 020-28261689 Power Tianhe District Qinghua Development Guangzhou Co.Ltd. 18/F Wamg Bin Li PricewaterhouseCooper PricewaterhouseCoopers Yanhua（2019）； s Zhongtian Certified Center No.10 Zhujiang Public Accountants West Road Zhujiang Wang Bin Guo Wang Bin 020-38192000 (Special General New Town Tianhe Biyu（2018）； Partnership) District Guangzhou Wang Bin Chen China Junjun（2017） China Cheng Xin Building 6 Yinhe International Credit FangSOHO No.2 Not applicable 010-66428877 Rating Co. Ltd. ZibinNanzhugan Hutong 982022 Annual Report Dongcheng District Beijing China Securities Co. 2/F Block B Kaiheng Ltd. (lead principal Center No.2 underwriter/bookkeepin Chaoyangmennei Street Not applicable Liu Renshuo 010-86451370 g manager/trustee) Dongcheng DistrictBeijing 22/F CITIC Securities CITIC Securities Co. Building No.48 Ltd. (joint lead Liangmaqiao Road Not applicable SongYilan 010-60836755underwriter) Chaoyang District Beijing Public Issuance of 23/F R&F Center Corporate Bonds Beijing Zhong Lun Law No.10 Huaxia Roadto Professional Zhujiang New Town Not applicable LiangFirm 020-28261689Investors in 2021 Tianhe District Qinghua (Phase II) of Guangzhou Guandong Electric 18/F Power PricewaterhouseCooper PricewaterhouseCoopers Wng Bin Lis Zhongtian Certified Center No.10 Zhujiang Yanhua（2019-Public Accountants West Road Zhujiang(Special General New Town Tianhe 2020）；Wang Bin Wang Bin 020-38192000 Partnership) District Guangzhou Guo Biyu（2018） China Building 6 Yinhe China Cheng Xin SOHO No.2 International Credit Nanzhugan Hutong Not applicable Fang 010-66428877 Rating Co. Ltd. Dongcheng District Zibin Beijing China Securities Co. 2/F Block B Kaiheng Ltd. (principal Center No.2 underwriter/bookkeepin Chaoyangmennei Street Not applicable Liu 010-86451370 g manager/trustee) Dongcheng District Renshuo Beijing 29/F 10/F and 11/F (01- 04 units) Chow Tai Public Issuance of Fook Finance Centre Corporate Bonds ETR Law Firm NO.6 Zhujiang Dong Not applicable Wang Xing 020-37181333 to Professional Road Tianhe DistrictGuangzhou City Investors in 2021 Guangdong Province (Phase I) of Guandong Electric 18/FPricewaterhouseCooper PricewaterhouseCoopers Power Wang Bin Lis Zhongtian Certified Center No.10 ZhujiangDevelopment Yanhua（2019-Public Accountants West Road Zhujiang Chin 020-38192645Co.Ltd. (Special General New Town Tianhe 2020）；Wang Bin Junjun Partnership) District Guangzhou Guo Biyu（2018） China Building 5 Yinhe China Cheng Xin SOHO No.2 International Credit Nanzhugan Hutong Not applicable Sheng Lei 010-66428877 Rating Co. Ltd. Dongcheng District Beijing Public Issuance of North Block Times Corporate Bonds Square Excellence to Professional CITIC Securities Co. (Phase II) No.8 Ltd Zhongxin Third Road Not applicable Jian 13539997160 Investors in 2021 Futian District Qiongwen (Phase I) of Shenzhen City Guandong Guangdong Province Huizhou Pinghai Zhongxi Certified 11/F Block A Wei Shuzhen Fan Fan Power Generation Public Accountants Xincheng Culture Fengwei Fengwei 18520643032 992022 Annual Report Co.Ltd. (Special General Building No.11 Partnership) Chongwenmenwai Street Beijing Shanghai Brilliance Credit Rating & 14/F Huasheng Investors Service Co. Building No.398 Not applicable Yu Liping 13641825613 Ltd. Hankou Road Shanghai 7/F Block D Beijing Dentons Law Qiaofufang Grassland Offices LLP No.9 Dongdaqiao Road Not applicable Lv Sihui 13692899924Chaoyang District Beijing Whether the above agency changes during the reporting period □ Yes √No 4). Use of raised funds In RMB Rectificati Whether it is Unuse Operation of on of consistent with Total amount d special account illegal use the purpose useName of bond project of raised funds Used amount amoun for raised funds of raised plan and other t (if any) funds (if agreements any) stipulated in theprospectus Public Issuance of Corporate The special Bonds to Qualified Investors fund-raising in 2020 (Phase I) of Guandong 1500000000 1500000000 0 account No Yes Electric Power Development operates Co.Ltd. properly Public Issuance of Corporate The special Bonds to Qualified Investors fund-raising in 2021 (Phase I) of Guandong 1000000000 1000000000 0 account No Yes Electric Power Development operates Co.Ltd. properly Public Issuance of Corporate The special Bonds to Professional fund-raising Investors in 2021 (Phase II) of 1500000000 1500000000 0 account No Yes Guandong Electric Power operates Development Co.Ltd. properly Public Issuance of Corporate The special Bonds to Professional fund-raising Investors in 2021 (Phase I) of 800000000 800000000 0 account No Yes Guandong Electric Power operates Development Co.Ltd. properly Public Issuance of Corporate The special Bonds to Professional fund-raising Investors in 2021 (Phase I) of 200000000 200000000 0 account No Yes Guandong Huizhou Pinghai operates Power Generation Co.Ltd. properly The raised funds are used for construction projects □ Applicable √ Not applicable During the reporting period the company changed the use of funds raised from the above bonds □ Applicable √ Not applicable 1002022 Annual Report 5).Adjustment of credit rating results during the reporting period □ Applicable √ Not applicable 6) The implementation and changes of guarantee debt repayment plan and other debt repayment guarantee measures during the reporting period and their impact on the rights and interests of bond investors √ Applicable □ Not applicable (1). Credit enhancement mechanism: 20 Yudean 01 21 Yudean 01 21 Yudean 02 21 Yudean 03 and 21 Pinghai company 01 bonds are not guaranteed. (2). Debt repayment plan and other debt repayment guarantee measures: 20 Yudean 01 21 Yudean 01 21 Yudean 02 21 Yudean 03 and 21 Pinghai 01 debt repayment plans and other debt repayment guarantee measures have not changed during the reporting period and the payment of their principal and interest will be handled by the bond registration institution and relevant institutions. The specific matters of payment will be elaborated in the announcement disclosed by the issuer in the media specified by China Securities Regulatory Commission Shenzhen Stock Exchange Shanghai Stock Exchange and China Securities Industry Association in accordance with relevant regulations. 1012022 Annual Report III. Debt financing instruments of non-financial enterprises √ Applicable □ Not applicable 1. Debt financing instruments of non-financial enterprises In RMB Bond name Bond short Bond code Issue day Value date Due day Bond balance Interestname rate Servicing way Trading Using simple interest rate on a yearly 2021 MTN (Phase I) of basis regardless of compound interest. 21 Yudean Guangdong Electric Power 102101339.IB July 192021 July 212021 July 212024 1200000000 3.17% Due payments once a year maturing Interbank FaMTN001 debt at a time. In the final phase market Development Co. Ltd. interest is paid together with the principal redemption.Using simple interest rate on a yearly 2021 MTN (Phase II) of basis regardless of compound interest. 21 Yudean November November November Guangdong Electric Power 102102318.IB 2200000000 3.13% Due payments once a year maturing Interbank FaMTN002 152021 172021 172024 debt at a time. In the final phase market Development Co. Ltd. interest is paid together with the principal redemption.Using simple interest rate on a yearly 2022 MTN (Phase I) of basis regardless of compound interest. 22 Yudean August Guangdong Electric Power 102281929.IB August 242022 August 262022 600000000 2.90% Due payments once a year maturing Interbank FaMTN001 262027 debt at a time. In the final phase market Development Co. Ltd. interest is paid together with the principal redemption.Using simple interest rate on a yearly 2023 MTN (Phase I) of basis regardless of compound interest. 23 Yudan Guangdong Electric Power 102380558.IB March 15 2023 March 172023 March 172023 1600000000 3.35% Due payments once a year maturing Interbank FaMTN001 debt at a time. In the final phase market Development Co. Ltd. interest is paid together with the principal redemption.Guangdong Electric Power Development Co. Ltd. Co. 22 Yudean December December One time repayment of principal and Interbank 012284265.IB June 72023 2000000000 2.34% Ltd.2022 III phase Ultra-short FaSCP003 92022 122022 interest due market term financing bills Guangdong Electric Power 22 Yudean December December Development Co. Ltd. Co. 012284408.IB March 232023 1500000000 2.52% One time repayment of principal and Interbank FaSCP004 222022 232022 interest due market Ltd.2022 IV phase Ultra-short 1022022 Annual Report term financing bills Using simple interest rate on a yearly 2021 MTN (Phase I) of basis regardless of compound interest. 21 Pnghai Fa October Guangdong Huizhou Pinghai 102102049.IB October 152021 October 152021 300000000 3.72% Due payments once a year maturing Interbank MTN001 152024 debt at a time. In the final phase market Power Generationt Co. Ltd. interest is paid together with the principal redemption.During the reporting period interest payment situation of the company bonds（If any） No Circulation and transfer in the national inter-bank bond market its listing and circulation will Applicable trading mechanism be carried out in accordance with the relevant regulations promulgate d by the National Interbank Funding CenterWhether there are risks and countermeasures for terminating listing transactions（If any) NoOverdue and unpaid bonds □ Applicable √ Not applicable 1032022 Annual Report 2. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor □ Applicable √ Not applicable 3.Information of intermediary agency Name of bond Name ofintermediary Office Address Name of signing Contact person ofproject accountant intermediary agency Telagency Industry Bank(lead principal No.154 Hudong Zhao Xinle Liu 010-89926570、 underwriter/bookk Road Fuzhou Not applicableFujian Jingyi 020-38160153eeping manager No. 55 ICBC(joint lead Fuxingmennei underwriter) Street Xicheng Not applicable Sheng Xue 010-66106736 District Beijing 3133 36 and 37/F SK 2021 MTN (Phase Beijing Zhong Lun Building A6 I) of Guangdong Law Firm Jianguomenwai Not Applicable Liang Qinghua 020-28262689 Electric Power Street ChaoyangDistrict Beijing Development Co.Ltd. 11/FPricewaterhouseC PricewaterhouseC Wang Bin Lioopers Zhongtian oopers No.2 Yanhua（2019-Certified Public EnterpristAccountants Building No.202 2020）；Wang Li Xiaolei 021-23238888 (Special General Hubin Road Bin Guo Biyu Partnership) Huangpu District （2018） Shanghai Shanghai 14/f Huasheng Brilliance Credit Building No.398 Rating & Investors Hankou Road Not applicable Zhang Jie 18600048666 Service Co. Ltd. Shanghai Industry Bank (lead principal No.154 Hudong Zhao Xinle Ye 010-89926570、 underwriter/bookk Road Not applicableFuzhou Fujian Huishan 020-38160153eeping manager No. 55 ICBC(joint lead Fuxingmennei underwriter) Street Xicheng Not applicable Sheng Xue 010-66106736 District Beijing 2021 MTN (Phase 3133 36 and II) of Guangdong 37/F SK Electric Power Beijing Zhong Lun Building A6 Development Co. Law Firm Jianguomenwai Not Applicable Liang Qinghua 020-28262689 Street Chaoyang Ltd. District Beijing 11/F PricewaterhouseC PricewaterhouseC Wang Bin Lioopers Zhongtian oopers No.2 Yanhua（2019-Certified Public EnterpristAccountants Building No.202 2020）；Wang Li Xiaolei 021-23238888 (Special General Hubin Road Bin Guo Biyu Partnership) Huangpu District （2018） Shanghai 2022 MTN (Phase Industry Bank(lead principal No.154 HudongRoad Not applicable Zhao Xinle Ye 010-89926570、I) of Guangdong underwriter/bookk Huishan 020-38160153 Electric Power eeping manager Fuzhou Fujian Development Co. ICBC(joint lead No. 55 Not applicable Sheng Xue 010-66106736 1042022 Annual Report Ltd. underwriter) Fuxingmennei Street Xicheng District Beijing 3133 36 and 37/F SK Beijing Zhong Lun Building A6 Law Firm Jianguomenwai Not Applicable Liang Qinghua 020-28262689 Street Chaoyang District Beijing 11/F PricewaterhouseC PricewaterhouseC Wang Bin Lioopers Zhongtian oopers No.2 Yanhua（2019-Certified Public EnterpristAccountants Building No.202 2020）；Wang Li Xiaolei 021-23238888 (Special General Hubin Road Bin Guo Biyu Partnership) Huangpu District （2018） Shanghai Industry Bank (lead principal No.154 HudongRoad Not applicable Zhao Xinle Yeunderwriter/bookk 020-38988015Huishan eeping manager Fuzhou Fujian Agricultural Bank of China No.69 Jianguo Corporation Mennei StreetChaoyang Not applicable An Liwei 010-85109045Limited (co-lead underwriter) District Beijing 2023 MTN (Phase 3133 36 and I) of Guangdong 37/F SK Electric Power Beijing Zhong Lun Building A6 Development Co. Law Firm Jianguomenwai Not Applicable Liang Qinghua 020-28262689 Street Chaoyang Ltd. District Beijing 11/F PricewaterhouseC PricewaterhouseC Chen Junjun Li oopers Zhongtian oopers No.2 Xiaolei Certified Public Enterprist Accountants Building No.202 （2021）；Wang Li Xiaolei 021-23238888 (Special General Hubin Road BinLi YanhuaPartnership) Huangpu District （2019-2020)Shanghai China Construction Bank No.25 Finance (lead principal Street Xicheng Not applicable Zhou Peng 010-67596478 underwriter/bookk District Beijing eeping manager Industrial Bank No.154 Hudong Road Not applicable Zhao Xinle Liu 010-89926570、Co. Ltd. (joint Jingyi 020-38160153 lead underwriter) Fuzhou Fujian Guangdong 10 &11/f Chow Electric Power Tai Fook Finance Development Co. Certire No.6 Ltd.2022 III phase ETR Law Firm Zhujiang Dong Not applicable Wang Xing 020-37181333 Ultra-short term Road Tianhe financing bills District Guangzhou PricewaterhouseC 11/F PricewaterhouseC Chen Junjun Lioopers Zhongtian Certified Public oopers No.2 Xiaolei Accountants Enterprist （2021）；Wang Li Xiaolei 021-23238888 (Special General Building No.202 BinLi YanhuaPartnership) Hubin Road （2019-2020)Huangpu District 1052022 Annual Report Shanghai SPD Bank （principal No.12 Zhongshan Not applicable Lin Jie 021-31886388underwriter/bookk 1 Road Shanghaieeping manager） 10 &11/f Chow Tai Fook Finance Guangdong Certire No.6 Electric Power ETR Law Firm Zhujiang Dong Not applicable Wang Xing 020-37181333 Development Co. Road Tianhe Ltd.2022 IV phase District Ultra-short term Guangzhou financing bills 11/F PricewaterhouseC PricewaterhouseC Chen Junjun Li oopers Zhongtian oopers No.2 Xiaolei Certified Public Enterprist Accountants Building No.202 （2021）；Wang Li Xiaolei 021-23238888 (Special General Hubin Road BinLi YanhuaPartnership) Huangpu District （2019-2020)Shanghai No. 55 ICBC(joint lead Fuxingmennei underwriter) Street Xicheng Not applicable Dai Ying 010-66109649 District Beijing Industry Bank (lead principal No.154 Hudong underwriter/bookk Road Not applicable Zhao Xinle 010-89926570 eeping manager Fuzhou Fujian 2021 MTN (Phase 11/F Block AZhongxi II) of Guangdong Xincheng CultureCPAs( Special Wei Shuzhen Fan Huizhou Pinghai Building No.11 Fan Fengwei 18520643032General Fengwei Power Genration ChongwenmenwaiPartnership) Co. Ltd. Street Beijing （Sustainable Shanghai 14/F Huashengpeg） Brilliance Credit Building No.398 Yu Liping Lin Yu Liping 13641825613 Rating & Investors Hankou Road Qiaoyun Service Co. Ltd Shanghai 7/F Block D Qiaofufang Beijing Dentons Grassland No.9 Ni Jieyun Chen Lv Sihui 13692899924 Law Offices LLP Dongdaqiao Road Shiyi Chaoyang District Beijing Whether the above agency changes during the reporting period □ Yes √No 1064. Use of raised funds In RMB Whether it is consistent Total amount Unuse Operation of Rectification with the Name of bond project of raised Used amount d special account of illegal use purpose use funds amount for raised funds of raised plan and other(if any) funds (if any) agreements stipulated in the prospectus The special 2021 MTN (Phase I) of fund-raising Guangdong Electric Power 1200000000 1200000000 0 account No Yes Development Co. Ltd. operates properly 2021 MTN (Phase II) of Guangdong Electric Power 2200000000 2200000000 0 Not applicable No Yes Development Co. Ltd. 2022 MTN (Phase I) of Guangdong Electric Power 600000000 600000000 0 Not applicable No Yes Development Co. Ltd. 2023 MTN (Phase I) of Guangdong Electric Power 1600000000 1600000000 0 Not applicable No Yes Development Co. Ltd.Guangdong Electric Power Development Co. Ltd.2022 III 2000000000 2000000000 0 Not applicable No Yes phase Ultra-short term financing bills Guangdong Electric Power Development Co. Ltd.2022 IV 1500000000 1500000000 0 Not applicable No Yes phase Ultra-short term financing bills 2021 MTN (Phase I) of Guangdong Huizhou Pinghai 300000000 300000000 0 Not applicable No Yes Power Genration Co. Ltd.（Sustainable peg） The raised funds are used for construction projects √ Applicable □Not applicable 21Yudeanfa MTN001 raised RMB 1.2 billion of which RMB 375 million was used to replace the increased capital of its holding subsidiaries that is it was finally used to replace the paid-in capital of key construction projects. RMB 250 million is used to replace the increased capital of Guangdong Yudean Marina Bay Energy Co. Ltd. and finally used for the capital of the alternative power supply project at Ningzhou plant site in Dongguan; RMB 125 million is used to replace the increased capital of Guangdong Yudean Qujie Wind Power Generation Co. Ltd. and finally used for the capital of phase II of Guangdong Yudean Zhanjiang Wailuo Offshore Wind Power Project. In the main building installation project of the alternative power supply project at Ningzhou plant site in Dongguan the first concrete of the main plant foundation was poured in September 2021. The construction of the project is progressing as planned. By February 28 2023 the structure of the main workshop has been built to the roof in which the main structure of No.1 main workshop has been completed and the No.2 and No.3 machine islands have been delivered for installation; The auxiliary transformer and main transformer of Unit #2 have been put in place. It is expected that the first unit will be put into operation in April 2023 and the second and third units will be put into operation in June and September of the same year. The Phase II of Guangdong Yudean Zhanjiang Wailuo Offshore Wind Power Project was put 107into operation in December 2021 and the project was in good operation. In 2022 it realized an operating income of RMB 244873100 and an operating profit of RMB -48906600.During the reporting period the company changed the use of funds raised from the above bonds □ Applicable √ Not applicable 5.Adjustment of credit rating results during the reporting period □ Applicable √ Not applicable 6 The implementation and changes of guarantee debt repayment plan and other debt repayment guarantee measures during the reporting period and their impact on the rights and interests of bond investors √ Applicable □Not applicable 1). 21Yudeanfa MTN001 21Yudeanfa MTN002 and 22Yudeanfa MTN 001 23Yudeanfa MTN00122 Yudeanfa SCP003 22 Yudeanfa SCP004 and 21 Pinghai FD MTN 001 are not guaranteed. 2). The debt repayment plan of the above-mentioned debt financing instruments and other debt repayment guarantee measures of the company have not changed during the reporting period.IV. Convertible bond □ Applicable √ Not applicable No such cases in the reporting period.V. The loss within the scope of consolidated statements in the reporting period exceeded 10% of the net assets at the end of the previous year □Not applicable □Not applicable Influence on the company's Loss situation Reasons for loss operation and solvency With assets of 100 billion yuan and During the reporting period coal strong solvency and gas prices were still high. The company has company actively strived for abundant financing During the reporting period the net profit within the scope of the favorable electricity prices and channels and company's consolidated statement was RMB -4514989124.95 which strictly implemented cost control sufficient credit accounted for 13.70% of the net assets at the end of the previous year but it could not cover the increase and can make full in fuel costs and the thermal power use of internal and business continued to suffer losses. external financial resources to ensure capital needs VI.Overdue interest-bearing debts except bonds at the end of the reporting period □ Applicable √ Not applicable 108VII.Whether there are any violations of rules and regulations during the reporting period □ Yes √ No VIII. Main accounting data and financial indicators of the company in recent two years by the end of the reporting period In RMB10000 Items At the end of the reporting At the end of last year At the same time rate ofperiod change Current ratio 0.61 0.61 0% Debt ratio 78.16% 71.21% 6.95% Quick ratio 0.53 0.53 0% Amount of this period Amount of last period At the same time rate ofchange Net profit after deducting non-recurring profit and loss -446349.23 -375656.56 -18.82% EBITDA total debt ratio 3.43% 1.67% 1.76% Time interest earned ratio -0.94 -2.18 56.94% Cash interest guarantee times 0.66 0.08 725% EBITDATime interest earned ratio 1.30 0.68 91.18% Repayment of debt (%) 100% 100% 0% Payment of interest (%) 100% 100% 0% 109GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. FINANCIAL STATEMENTS AND AUDITOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 [English translation for reference only. Should there be any inconsistency between the Chinese and English versions the Chinese version shall prevail.]Guangdong Electric Power Development Co. Ltd.Financial Statements and Auditor's Report For the Year Ended 31 December 2022 [English translation for reference only] Content Page Auditor’s Report 113 - 120 Financial statements for the year ended 31 December 2022 Consolidated and company balance sheets 121 - 125 Consolidated and company income statements 126 - 127 Consolidated and company cash flow statements 128 - 130 Consolidated statement of changes in shareholders’ equity 131 - 132 Company statement of changes in shareholders’ equity 133 - 134 Notes to the financial statements 135 - 290 Supplementary information to the financial statements 291 - 292 111[English Translation for Reference Only] Auditor’s Report PwC ZT Shen Zi (2023) No. 10033 (Page 1 of 8) To the shareholders of Guangdong Electric Power Development Co. Ltd.Opinion What we have audited We have audited the accompanying financial statements of Guangdong Electric Power Development Co. Ltd. (hereinafter “Guangdong Electric Power”) which comprise: the consolidated and company balance sheets as at 31 December 2022; the consolidated and company income statements for the year then ended; the consolidated and company cash flow statements for the year then ended; the consolidated and company statements of changes in shareholders’ equity for the year then ended; and notes to the financial statements.Our opinion In our opinion the accompanying financial statements present fairly in all material respects the consolidated and company’s financial position of Guangdong Electric Power as at 31 December 2022 and their financial performance and cash flows for the year then ended in accordance with the requirements of Accounting Standards for Business Enterprises (“CASs”).Basis for Opinion We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.We are independent of Guangdong Electric Power in accordance with the Code of Ethics forProfessional Accountants of the Chinese Institute of Certified Public Accountants (“CICPACode”) and we have fulfilled our other ethical responsibilities in accordance with the CICPA Code.Key Audit Matter Key audit matters are those matters that in our professional judgement were of most significance in our audit of the financial statements of the current period. These matters 112were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. 113PwC ZT Shen Zi (2023) No. 10033 (Page 2 of 8) Key Audit Matter (Cont’d) Key audit matters identified in our audit are summarised as follows: (1) Impairment of power related fixed assets (2) Recognition of deferred tax assets related to deductible losses Key Audit Matter How our audit addressed the Key Audit Matter (1) Impairment of power related fixed Our audit procedures for the impairment of assets power related fixed assets mainly include: Refer to Note 2(29)(b)(i) and Note We understood and evaluated the internal 4(10)(a)(iv) to the financial statements. control relevant to the impairment test of fixed assets and tested the operating Certain subsidiaries of Guangdong effectiveness of key control; Electric Power have been experiencing continuous operating losses in recent years. Taking into account possible We involved internal valuers to review future risks such as the instability of and analyse the appropriateness of the electricity demand the unstable price of method applied by management for the coal used in power generation the impairment test; macro-economy and other risk factors management continuously assesses the impairment of the fixed assets of the Based on our understanding of the above subsidiaries. businesses of the subsidiaries as well as the industry in which they operate we As at 31 December 2022 management evaluated the rationality of assumptions conducted impairment tests for the fixed adopted by management in calculation of assets of the aforesaid subsidiaries and the present value of estimated future cash made a provision for impairment at the flows including the discount rate the excess of the carrying amount of asset growth rate of the estimated on-grid price groups of generator units over their the growth rate of the estimated electricity recoverable amount. The recoverable sale and the varability rate of the amount of the asset groups was the estimated price of coal used in power higher of the fair value less costs to sell generation: of the asset groups and the present value of the future cash flows expected to be derived from them. The calculations of - For the discount rate we involved the present value of the future cash flows internal valuers to evaluate the expected to be derived from them appropriateness in combination with involve management’s significant industry situation; estimates and judgements including the - For the growth rate of the estimated discount rate the growth rate of the on-grid electricity price and the estimated on-grid electricity price the varability rate of the estimated price of growth rate of the estimated electricity coal used in power generation we sale and the varability rate of the compared historical varability rates estimated price of coal used in power and industry data and considered generation. market trend; 114PwC ZT Shen Zi (2023) No. 10033 (Page 3 of 8) Key Audit Matter (Cont’d) Key Audit Matter (Cont’d) How our audit addressed the Key Audit Matter (Cont’d) (1) Impairment of power related fixed Our audit procedures for the impairment of assets (Cont’d) power related fixed assets (Cont’d): As the carrying amounts of fixed assets - For the growth rate of the estimated with indication of impairment are electricity sale we have compared significant to the consolidated financial historical data approved budgets and statements of Guangdong Electric business plans and checked the Power and the impairment test of asset corresponding supporting documents; groups of generator units involves management’s significant estimates and judgements impairment of power We checked the input data and formulas related fixed assets is identified as a key used in the calculation of the present value audit matter. of future cash flows expected to be derived from them and evaluated the mathematic accuracy; We compared the key assumptions used by management in estimating the present value of future cash flows in the previous year with the actual operation of the current year to evaluate if there’s any indication of management bias; We conducted sensitivity analysis on the discount rate and other key assumptions applied by management and evaluated how the changes in key assumptions (individually or in aggregate) will give rise to different results to further evaluate if there’s any indication of management bias in selecting parameters of key assumptions.Based on the results of the aforesaid work we found that management's judgements and estimates on the impairment of fixed assets are supported by appropriate evidence. 115PwC ZT Shen Zi (2023) No. 10033 (Page 4 of 8) Key Audit Matter (Cont’d) Key Audit Matter (Cont’d) How our audit addressed the Key Audit Matter (Cont’d) (2) Recognition of deferred tax assets Our audit procedures for the recognition of related to deductible losses deferred tax assets related to deductible losses mainly include: Refer to Note 2(29)(b)(iii) and Note 4(16) to the financial statements. We obtained management's calculation As at 31 December 2022 Guangdong sheet for the financial forecast in future Electric Power recognised the periods checked the input data and corresponding deferred tax assets for the formulas used in the calculation and deductible losses incurred by individual evaluated the mathematic accuracy; subsidiaries at a total of RMB 968337573. Deductible losses that were not recognised as deferred tax assets We obtained supporting documents such totalled RMB 11033478760. as the income tax settlement report tax returns and accounting records of the According to the financial forecast of the aforesaid subsidiaries and reviewed for aforesaid subsidiaries in future periods the existence of deductible losses and the management recognises deferred tax accuracy of the amount and period; assets within the limits of which the aforesaid subsidiaries are likely to obtain Based on our understanding of the future taxable income to offset the businesses of the aforesaid subsidiaries deductible losses. The financial forecast of the aforesaid subsidiaries in future and the industry in which they operate periods involves significant and combined with industry development management’s significant estimates and trend and historical operating judgements including estimated performance we evaluated the key electricity sale estimated on-grid assumptions used by management to electricity price estimated price of coal calculate the expected taxable income for used in power generation and other future periods including the operating expenses. reasonableness of assumptions on estimated electricity sale estimated on- grid electricity price estimated fuel price and other operating expenses; 116PwC ZT Shen Zi (2023) No. 10033 (Page 5 of 8) Key Audit Matter (Cont’d) Key Audit Matter (Cont’d) How our audit addressed the Key Audit Matter (Cont’d) (2) Recognition of deferred tax assets Our audit procedures for the recognition of related to deductible losses (Cont’d) deferred tax assets related to deductible losses mainly include (Cont’d): As the deferred tax assets related to deductible losses are significant to the consolidated financial statements of We compared the taxable income Guangdong Electric Power and the estimated by management last year with financial forecast for future periods the actual taxable income for the current involves management’s significant year to access the historical accuracy of estimates and judgements the management’s forecast; recognition of the deferred tax assets related to deductible losses is identified as a key audit matter. We reviewed whether the deferred tax assets were recognised within the limits of which the taxable income was likely to be obtained in the future to offset deductible losses and deductible temporary differences.Based on the results of the above work we found that management's estimates regarding the recognition of deferred tax assets related to deductible losses were supported by appropriate evidence. 117PwC ZT Shen Zi (2023) No. 10033 (Page 6 of 8) Other Information Management of Guangdong Electric Power is responsible for the other information. The other information comprises all of the information included in 2022 annual report of Guangdong Electric Power other than the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based on the work we have performed we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.Responsibilities of Management and Audit and Compliance Committee for the Financial Statements Management of Guangdong Electric Power is responsible for the preparation and fair presentation of these financial statements in accordance with the CASs and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.In preparing these financial statements management is responsible for assessing Guangdong Electric Power’s ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate Guangdong Electric Power or to cease operations or has no realistic alternative but to do so.The Audit and Compliance Committee is responsible for overseeing Guangdong Electric Power’s financial reporting process.Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether these financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with CSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 118PwC ZT Shen Zi (2023) No. 10033 (Page 7 of 8) Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d) As part of an audit in accordance with CSAs we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on Guangdong Electric Power’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor’s report to the related disclosures in these financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However future events or conditions may cause Guangdong Electric Power to cease to continue as a going concern.Evaluate the overall presentation (including the disclosures) structure and content of the financial statements and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within Guangdong Electric Power to express an opinion on the financial statements. We are responsible for the direction supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with the Audit and Compliance Committee regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit. 119PwC ZT Shen Zi (2023) No. 10033 (Page 8 of 8) Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d) We also provide the Audit and Compliance Committee with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with the Audit and Compliance Committee we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.PricewaterhouseCoopers Zhong Tian LLP Signing CPA Li Xiaolei (Engagement Partner) Shanghai the People’s Republic of China Signing CPA 30 March 2023 Fan Xin 120GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 31 December ASSETS Note 31 December 2022 2021 (Restated) Current assets Cash at bank and on hand 4(1) 11503523618 8105320953 Notes receivables 2644300 165603 Accounts receivables 4(2) 7578636244 7030685357 Advances to suppliers 4(3) 1534982252 892771238 Other receivables 4(4) 934784152 2429475558 Inventories 4(5) 3376868100 2998894539 Contract assets 4910263 4754820 Other current assets 4(6) 875605805 1417985608 Total current assets 25811954734 22880053676 Non-current assets Long-term equity investments 4(7) 9198053183 8074149836 Investments in other equity instruments 4(8) 3058071054 3232028682 Investment properties 4(9) 365285301 378796932 Fixed assets 4(10) 62400175057 57145099423 Construction in progress 4(11) 11768828161 8710691766 Right-of-use assets 4(12) 7352044966 5256124979 Intangible assets 4(13) 3346735496 2658726346 Goodwill 4(14) 128097553 139983037 Long-term prepaid expenses 4(15) 109485746 30335301 Deferred tax assets 4(16) 1359025081 1176841986 Other non-current assets 4(17) 6606518552 4810251634 Total non-current assets 105692320150 91613029922 TOTAL ASSETS 131504274884 114493083598 121GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. CONSOLIDATED BALANCE SHEET (CONT’D) AS AT 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] LIABILITIES AND SHAREHOLDERS’ EQUITY Note 31 December 2022 31 December 2021 (Restated) Current liabilities Short-term borrowings 4(19) 16261444860 12360296429 Notes payables 4(20) 1495778076 1908780000 Accounts payables 4(21) 5938254013 6626567064 Contract liabilities 4960974 5864811 Employee benefits payable 4(22) 447421417 422013230 Taxes payable 4(23) 302484915 502303075 Other payables 4(24) 9403658031 10569763778 Current portion of non-current liabilities 4(25) 3975249970 3697619753 Other current liabilities 4(26) 4174850374 1658449006 Total current liabilities 42004102630 37751657146 Non-current liabilities Long-term borrowings 4(27) 42860932628 28940577856 Debentures payable 4(28) 9094489909 8693083422 Lease liabilities 4(29) 6870820017 4728167142 Long-term payables 4(30) 666297028 121779223 Deferred income 4(31) 142292215 163611515 Long-term employee benefits payable 4(32) 429265269 415480262 Deferred tax liabilities 4(16) 584116265 635754761 Other non-current liabilities 4(33) 129428167 75469729 Total non-current liabilities 60777641498 43773923910 Total liabilities 102781744128 81525581056 Shareholders’ equity Share capital 4(34) 5250283986 5250283986 Capital surplus 4(35) 4257046505 4276952183 Other comprehensive income 4(36) 1629837957 1750011571 Specific reserve 520379 - Surplus reserve 4(37) 8903515135 8903515135 Undistributed profits 4(38) 200668517 3205422561 Total equity attributable to shareholders of the Company 20241872479 23386185436 Minority interests 8480658277 9581317106 Total shareholders’ equity 28722530756 32967502542 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 131504274884 114493083598 The accompanying notes form an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department: Zheng Yunpeng Liu Wei Meng Fei 122GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. COMPANY BALANCE SHEET AS AT 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] ASSETS Note 31 December 2022 31 December 2021 Current assets Cash at bank and on hand 879381053 708028634 Accounts receivables 14(1) 191716383 192707778 Advances to suppliers 26568272 26368250 Other receivables 14(2) 568099765 415990566 Inventories 85079898 216808997 Other current assets 1198615 21453621 Total current assets 1752043986 1581357846 Non-current assets Long-term receivables 1160000000 627000000 Long-term equity investments 14(3) 41709796167 36539978077 Investments in other equity instruments 3057271054 3231228683 Investment properties 5118650 5754247 Fixed assets 340983004 436327041 Construction in progress 1052786 1201126 Right-of-use assets 6443720 8125410 Intangible assets 77808432 80670784 Long-term prepaid expenses 1595480 - Other non-current assets 218100000 136500000 Total non-current assets 46578169293 41066785368 TOTAL ASSETS 48330213279 42648143214 123GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. COMPANY BALANCE SHEET (CONT’D) AS AT 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] LIABILITIES AND OWNERS’ EQUITY Note 31 December 2022 31 December 2021 Current liabilities Short-term borrowings 3522986272 2442508111 Accounts payables 169028547 214080378 Contract liabilities - 1083950 Employee benefits payable 115457391 105045040 Taxes payable 17655588 8288884 Other payables 60615999 2535329957 Current portion of non-current liabilities 751166231 125174953 Other current liabilities 3525551274 1030040123 Total current liabilities 8162461302 6461551396 Non-current liabilities Long-term borrowings 4498800000 - Debentures payable 8794981607 8193949060 Lease liabilities 610527 4251838 Deferred income 9996202 19992404 Long-term employee benefits payable 76074603 68648773 Deferred tax liabilities 520442187 562112354 Total non-current liabilities 13900905126 8848954429 Total liabilities 22063366428 15310505825 Shareholders’ equity Share capital 5250283986 5250283986 Capital surplus 4834675772 4834039575 Other comprehensive income 1640520684 1764421309 Surplus reserve 8903515135 8903515135 Undistributed profits 5637851274 6585377384 Total shareholders’ equity 26266846851 27337637389 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 48330213279 42648143214 The accompanying notes form an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department: Zheng Yunpeng Liu Wei Meng Fei 124GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Item Note 2022 2021 (Restated) Revenue 4(39) 52661088436 44457866542 Less: Cost of sale 4(39) (52852310181) (46827505473) Taxes and surcharges 4(40) (245262277) (293980076) Selling expenses 4(41) (69108603) (65407040) General and administrative expenses 4(42) (1192506931) (1101123287) Research and development expenses 4(43) (1229311572) (584714979) Financial expenses 4(44) (2135900012) (1371365945) Including: Interest expenses 2257705843 1499997783 Interest income 132632800 133800923 Add: Other income 4(48) 80160312 72653517 Investment income 4(49) 1061876396 835945827 Including: Share of profit of associates and joint ventures 960006337 743767471 Credit impairment reversal/(loss) 4(47) 1563130 (21767857) Asset impairment losses 4(46) (173772140) (29330461) Gains on disposals of assets 4(50) 30802837 184589025 Operating loss (4062680605) (4744140207) Add: Non-operating income 4(51) 125490287 139092875 Less: Non-operating expenses 4(52) (443902556) (171458731) Total loss (4381092874) (4776506063) Less: Income tax (expenses)/Credits 4(53) (133896253) 525442914 Net loss (4514989127) (4251063149) Including: Net loss of the acquiree in a business combination under common control before the combination date - (658714842) 125GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. CONSOLIDATED INCOME STATEMENT (CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Item Note 2022 2021 (Restated) Classified by continuity of operations Net loss from continuing operations (4514989127) (4251063149) Net profit from discontinued operations - - Classified by ownership of the equity Net loss attributable to shareholders of the Company (3003916572) (2928171731) Minority interests (1511072555) (1322891418) Other comprehensive income net of tax (118919844) (222990915) Attributable to shareholders of the Company 4(36) (120173614) (206788258) Other comprehensive income that will not be reclassified to profit or loss Changes arising from remeasurement of defined benefit plans - (37296993) Share of other comprehensive income of the investee accounted for using equity method that will not be reclassified to profit or loss 9938693 15609735 Changes in fair value of investments in other equity instruments (131968221) (184768848) Other comprehensive income that will be reclassified to profit or loss Share of other comprehensive income of the investee accounted for using equity method that will be reclassified to profit or loss 1855914 (332152) Attributable to minority interests 1253770 (16202657) Total comprehensive income (4633908971) (4474054064) Attributable to shareholders of the Company (3124090186) (3134959989) Attributable to minority interests (1509818785) (1339094075) Earnings per share Basic earnings per share (RMB Yuan) 4(54) (0.57) (0.56) Diluted earnings per share (RMB Yuan) 4(54) (0.57) (0.56) The accompanying notes form an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department: Zheng Yunpeng Liu Wei Meng Fei 126GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. COMPANY INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Item Note 2022 2021 Revenue 14(4) 1533266982 1593822545 Less: Cost of sale 14(4) (1849774728) (1911951135) Taxes and surcharges (9648354) (7710134) Selling expenses (2412869) (2842664) General and administrative expenses (171586927) (145466208) Research and development expenses (29788257) (20455799) Financial expenses (432576281) (264631340) Including: Interest expenses 441545281 267141416 Interest income 12627185 6119603 Add: Other income 11028484 10117324 Investment income 14(5) 1115058948 3419054733 Including: Share of profit of associates and joint ventures 880732739 697838523 Credit impairment (loss)/reversal (67605) 58102 Asset impairment losses 14(6) (1101203999) (29321084) Operating (loss)/profit (937704606) 2640674340 Add: Non-operating income 11982760 242648802 Less: Non-operating expenses (19485023) (2738153) Total (loss)/profit (945206869) 2880584989 Less: Income tax expenses (2319241) (2319241) Net (loss)/profit (947526110) 2878265748 Classified by continuity of operations Net (loss)/profit from continuing operations (947526110) 2878265748 Net profit from discontinued operations - - Other comprehensive income net of tax (123900625) (181508634) Other comprehensive income that will not be reclassified to profit or loss Changes arising from remeasurement of defined benefit plans - (9126313) Share of other comprehensive income of the investee accounted for using equity method that will not be reclassified to profit or loss 6211682 12718679 Changes in fair value of investments in other equity instruments (131968221) (184768848) Other comprehensive income that will be reclassified to profit or loss Share of other comprehensive income of the investee accounted for using equity method that will be reclassified to profit or loss 1855914 (332152) Total comprehensive income (1071426735) 2696757114 The accompanying notes form an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department: Zheng Yunpeng Liu Wei Meng Fei 127GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Item Note 2022 2021 (Restated) Cash flows from operating activities Cash received from sale of goods or rendering of services 58985187824 48542309080 Refund of taxes and surcharges 2436660341 119312074 Cash received relating to other operating activities 4(55)(a) 262732577 272691582 Sub-total of cash inflows 61684580742 48934312736 Cash paid for goods and services (54729703233) (43630281266) Cash paid to and on behalf of employees (2736395371) (2571733835) Payments of taxes and surcharges (1722416617) (1699308834) Cash paid relating to other operating activities 4(55)(b) (1016200747) (910814133) Sub-total of cash outflows (60204715968) (48812138068) Net cash flows from operating activities 4(56)(a) 1479864774 122174668 Cash flows from investing activities Cash received from disposals of investments 2033756 - Cash received from returns on investments 257724562 388877407 Net cash received from disposals of fixed assets intangible assets and other long-term assets 1734284438 1656570070 Net cash received from disposals of subsidiaries and other business units 2510000 2479531 Cash received relating to other investing activities 4(55)(c) 66792867 - Sub-total of cash inflows 2063345623 2047927008 Cash paid to acquire fixed assets intangible assets and other long-term assets (14599355445) (10732326573) Cash paid to acquire investments (306328518) (343850820) Net cash paid to acquire subsidiaries and other business units 4(56)(c) (93901448) (76574154) Cash paid relating to other investing activities 4(55)(d) (215864319) (188815562) Sub-total of cash outflows (15215449730) (11341567109) Net cash flows used in investing activities (13152104107) (9293640101) 128GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. CONSOLIDATED CASH FLOW STATEMENT (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Item Note 2022 2021 (Restated) Cash flows from financing activities Cash received from capital contributions 466806611 131187000 Including: Cash received from capital contributions by minority shareholders of subsidiaries 466806611 131187000 Cash received from borrowings 50147797975 32180925115 Cash received from issuance of debentures 598290000 7192751240 Sub-total of cash inflows 51212894586 39504863355 Cash repayments of borrowings (30388831183) (25537837322) Cash payments for distribution of dividends profits or interest expenses (2267620075) (4635028385) Including: Dividends or profits paid to minority shareholders by subsidiaries (35299408) (1548524814) Cash paid relating to other financing activities 4(55)(e) (3473513406) (1542497576) Sub-total of cash outflows (36129964664) (31715363283) Net cash flows from financing activities 15082929922 7789500072 Effect of foreign exchange rate changes on cash and cash equivalents 972 (309) Net increase/(decrease) in cash and cash equivalents 4(56)(a) 3410691561 (1381965670) Add: Cash and cash equivalents at the beginning of the year 8023116939 9405082609 Cash and cash equivalents at the end of the year 4(56)(b) 11433808500 8023116939 The accompanying notes form an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department: Zheng Yunpeng Liu Wei Meng Fei 129GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. COMPANY CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Item 2022 2021 Cash flows from operating activities Cash received from sale of goods or rendering of services 1704886911 1751398147 Refund of taxes and surcharges 48773944 - Cash received relating to other operating activities 29357378 33327861 Sub-total of cash inflows 1783018233 1784726008 Cash paid for goods and services (1663501651) (1815409475) Cash paid to and on behalf of employees (313707873) (318336325) Payments of taxes and surcharges (32727086) (38149853) Cash paid relating to other operating activities (58467469) (57513608) Sub-total of cash outflows (2068404079) (2229409261) Net cash flows used in operating activities (285385846) (444683253) Cash flows from investing activities Cash received from disposals of investments 50000000 240000000 Cash received from returns on investments 334042053 2005221164 Net cash received from disposals of fixed assets intangible assets and other long-term assets 262854303 1539098 Sub-total of cash inflows 646896356 2246760262 Cash paid to acquire fixed assets intangible assets and other long-term assets (15738158) (25572026) Cash paid to acquire investments (6403397010) (2771449351) Net cash paid to acquire the subsidiary (2622780791) (2042164731) Sub-total of cash outflows (9041915959) (4839186108) Net cash flows used in investing activities (8395019603) (2592425846) Cash flows from financing activities Cash received from borrowings 16131600000 4838375167 Cash received from issuance of debentures 598290000 6699600000 Sub-total of cash inflows 16729890000 11537975167 Cash repayments of borrowings (7440000000) (7300000001) Cash payments for distribution of dividends profits or interest expenses (434052090) (824679178) Cash paid relating to other financing activities (7983067) (6524929) Sub-total of cash outflows (7882035157) (8131204108) Net cash flows from financing activities 8847854843 3406771059 Effect of foreign exchange rate changes on cash and cash equivalents 976 (309) Net increase in cash and cash equivalents 167450370 369661651 Add: Cash and cash equivalents at the beginning of the year 707707282 338045631 Cash and cash equivalents at the end of the year 875157652 707707282 The accompanying notes form an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department: Zheng Yunpeng Liu Wei Meng Fei 130GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Note Attributable to shareholders of the Company Other Total comprehensiv Specific Surplus Undistributed Minority shareholders’ Share capital Capital surplus e income reserve reserve profits interests equity Balance at 1 January 2022 (Restated) 5250283986 4276952183 1750011571 - 8903515135 3205422561 9581317106 32967502542 Movements for the year ended 31 December 2022 Total comprehensive income Net loss - - - - - (3003916572) (1511072555) (4514989127) Other comprehensive income 4(36) - - (120173614) - - - 1253770 (118919844) Total comprehensive income for the year - - (120173614) - - (3003916572) (1509818785) (4633908971) Capital contribution and withdrawal by shareholders Capital contribution by shareholders - - - - - - 265147196 265147196 Transactions with minority shareholders - (19288105) - - - - 167047220 147759115 Profit distribution Appropriation to surplus reserve 4(37) - - - - - - - - Distribution to shareholders 4(38)(b) - - - - - - (53852929) (53852929) Specific reserve Appropriation in the current year - - - 58277883 - - 22825440 81103323 Utilisation in the current year - - - (57757504) - - (22687361) (80444865) Share of interests in associates in proportion to the shareholding 4(35) - 636197 - - - - - 636197 Acquisition of subsidiaries - - - - - - 32000000 32000000 Others - (1253770) - - - (837472) (1319610) (3410852) Balance at 31 December 2022 5250283986 4257046505 1629837957 520379 8903515135 200668517 8480658277 28722530756 131GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Note Attributable to shareholders of the Company Other comprehensive Undistributed Total shareholders’ Share capital Capital surplus income Specific reserve Surplus reserve profits Minority interests equity Balance at 1 January 2021 5250283986 8014211278 1957175481 - 8515360638 8083048238 11808648219 43628727840 Movements for the year ended 31 December 2021 Total comprehensive income Net loss (Restated) - - - - - (2928171731) (1322891418) (4251063149) Other comprehensive income 4(36) - - (206788258) - - - (16202657) (222990915) Total comprehensive income for the year - - (206788258) - - (2928171731) (1339094075) (4474054064) Capital contribution and withdrawal by shareholders Capital contribution by shareholders - - - - - - 249001517 249001517 Others - 958923 - - - - 411286259 412245182 Business combination involving enterprises under common control - (3743601641) - - - - - (3743601641) Profit distribution Appropriation to surplus reserve 4(37) - - - - 388154497 (388154497) - - Distribution to shareholders - - - - - (1560317476) (1548524814) (3108842290) Share of interests in associates in proportion to the shareholding 4(35) - 5383623 - - - - - 5383623 Transfer within shareholders' equity Transfer from other comprehensive income to retained earnings - - (375652) - - 375652 - - Others - - - - - (1357625) - (1357625) Balance at 31 December 2021 (Restated) 5250283986 4276952183 1750011571 - 8903515135 3205422561 9581317106 32967502542 The accompanying notes form an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department: Zheng Yunpeng Liu Wei Meng Fei 132GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Other Total comprehensive Specific Surplus Undistributed shareholders’ Note Share capital Capital surplus income reserve reserve profits equity Balance at 1 January 2022 5250283986 4834039575 1764421309 - 8903515135 6585377384 27337637389 Movements for the year ended 31 December 2022 Total comprehensive income Net loss - - - - - (947526110) (947526110) Other comprehensive income - - (123900625) - - - (123900625) Total comprehensive income for the year - - (123900625) - - (947526110) (1071426735) Specific reserve Appropriation in the current year - - - 3991586 - - 3991586 Utilisation in the current year - - - (3991586) - - (3991586) Share of interests in associates in proportion to the shareholding 4(35) - 636197 - - - - 636197 Balance at 31 December 2022525028398648346757721640520684-8903515135563785127426266846851 133GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONT'D) FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Other Total comprehensive Specific Undistributed shareholders’ Note Share capital Capital surplus income reserve Surplus reserve profits equity Balance at 1 January 2021 5250283986 5405326643 1946305595 - 8515360638 4724248211 25841525073 Movements for the year ended 31 December 2021 Total comprehensive income Net profit - - - - - 2878265748 2878265748 Other comprehensive income - - (181508634) - - - (181508634) Total comprehensive income for the year - - (181508634) - - 2878265748 2696757114 Capital contribution and withdrawal by shareholders Capital withdrawal by shareholders - (576670691) - - - - (576670691) Profit distribution - Appropriation to surplus reserve 4(37) - - - - 388154497 (388154497) - Distribution to shareholders - - - - - (630034078) (630034078) Share of interests in associates in proportion to the shareholding 4(35) - 5383623 - - - - 5383623 Transfer within shareholders' - equity Transfer from other comprehensive income to retained earnings - - (375652) - - 375652 - Others - - - - - 676348 676348 Balance at 31 December 2021 5250283986 4834039575 1764421309 - 8903515135 6585377384 27337637389 The accompanying notes form an integral part of these financial statements.Legal representative: Principal in charge of accounting: Head of accounting department: Zheng Yunpeng Liu Wei Meng Fei 134GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 1 General information Guangdong Electric Power Development Co. Ltd. (“the Company”) is a limited liability company jointly established by Guangdong Electric Power Holding Company China Construction Bank Guangdong Province Trust Investment Company Guangdong Power Development Co. Ltd.Guangdong International Trust and China Guangfa Bank (currently named as Guangdong Guangkong Group Co. Ltd.). The address of the Company’s registered office and head office is F33~F36 South Tower Building of Yudean Square on 2nd Tianhe East Road Guangzhou Guangdong Province the People’s Republic of China (“the PRC”). The Company’s parent company is Guangdong Energy Group Co. Ltd. (“GEGC”) and its ultimate controlling shareholder is the State-owned Assets Supervision and Administration Commission of the People’s Government of Guangdong Province.The Company’s RMB ordinary shares (“A-share”) and domestic listed foreign shares (“B-share”) issued were listed for transactions in Shenzhen Stock Exchange respectively on 26 November 1993 and 28 June 1995. As at 31 December 2022 the total share capital of the Company was RMB 5250283986 with face value of RMB 1 per share.The Company and its subsidiaries (collectively referred to as “the Group”) are principally engaged in the businesses of developing and operating electric power projects in Guangdong Province Yunnan Province Xinjiang Uygur Autonomous Region Hunan Province and Guangxi Zhuang Autonomous Region of the PRC. For the information of the Company’s major subsidiaries included in the consolidation scope in the current year please refer to Note 6(1).These financial statements were authorised for issue by the Company's Board of Directors on 30 March 2023. 2 Summary of significant accounting policies and accounting estimates The Group determines specific accounting policies and accounting estimates based on the characteristics of production and operation which are mainly reflected in the measurement of expected credit losses (“ECL”) of receivables and contract assets (Note 2(9)) costing of inventory (Note 2(10)) investment properties depreciation of fixed asset and right-of-use assets and amortisation of intangible assets (Notes 2(12) 2(13) 2(25) and 2(16)) impairment of long- term assets (Note 2(18)) timing of revenue recognition (Note 2(22)) deferred tax assets and deferred tax liabilities (Note 2(24)) etc.Details of the Group’s critical judgements critical accounting estimates and key assumptions used in determining significant accounting policies are set forth in Note 2(29). 135GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (1) Basis of preparation The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereinafter collectively referred to as “the Accounting Standards for Business Enterprises” or “CAS”) and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15 – General Rules on Financial Reporting issued by the China Securities Regulatory Commission (“the CSRC”).As at 31 December 2022 the Group’s net current liabilities amounted to RMB 16192 million capital commitments amounted to RMB 27199 million among which the amount expected to be settled within one year was RMB 14199 million. Therefore the Group is to some extent exposed to liquidity risk. The reasons for net current liabilities were that a portion of the Group’s capital expenditure was backed by short-term borrowings and the significant rise of coal prices from 2021 to 2022. In view of the above the Board of Directors of the Company has carefully considered the Group's future working capital operating conditions and available financing sources when assessing the Group's ability to continue as a going concern. The Group has formulated the following plans and measures to reduce pressure of working capital and improve its financial position: (i) The Group maintains good relations of long-term cooperation with financial institutions (includingthe Company’s associate Guangdong Energy Group Finance Co. Ltd. (“Energy Group FinanceCompany”) and Guangdong Energy Finance Leasing Company (“Energy Finance LeasingCompany”)) in order to obtain sufficient financing credit lines. As at 31 December 2022 the Group’s available credit line and approved debt insurance from financial institutions amounted to approximately RMB 76698 million with RMB 26823 million from Energy Group Finance Company RMB 14105 million from Energy Finance Leasing Company RMB 24770 million from other commercial banks RMB 2000 million of corporate debentures approved for issuance by the CSRC and RMB 9000 million of quota of medium-term notes financing obtained after the registration in the Interbank Market in China. Among the Group’s available credit line from financial institutions approximately RMB 3016 million is due before 31 December 2023. In view of the Group’s business operation as well as good and long-term cooperative relationships with financial institutions management expected the credit line due before 31 December 2023 could be renewed for another 12 months.(ii) The Group will actively seek more favourable long-term electricity price and will strive to effectively reduce coal procurement costs by giving full play to its advantages in scale.Management believes that based on the actual trend of coal and electricity prices as at the issue date of the financial statements and the expected gradual implementation of relevant national regulatory policies the coal procurement situation is expected to improve to a certain extent and the Group's cash flows from operating activities in 2023 are expected to improve significantly. 136GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (1) Basis of preparation (Cont’d) The Board of Directors of the Company has reviewed the Group's cash flow forecasting for 2023 prepared by management. The cash flow forecasting is based on management's judgements and assumptions regarding a number of future events and is subject to the successful completion of a series of plans and measures planned and being implemented by the Group including: (1) The Group will continuously monitor the financial indicators of its subsidiaries and improve the operation and financing structure of its subsidiaries through various measures including but not limited to providing financing support and capital injection so that the subsidiaries within the Group can continue to meet the requirements of the borrowing agreements in foreseeable future; (2) the Group can continue to meet the conditions of existing bank financing and obtain necessary borrowing renewals and new borrowings including financing from Energy Group Finance Company and Energy Finance Leasing Company and it can successfully conduct external financing by issuing corporate debentures medium-term notes and ultra-short-term financing bonds when necessary; and (3) the Group will obtain more favourable long-term electricity price and effective adoption to lower fuel procurement costs so as to improve operating cash flows. Taking into full consideration of the above measures being implemented or planned by the Group management believes that the Group can obtain sufficient funds to pay its operating expenses capital commitment within one year and repay its matured debt obligations within the next 12 months from 31 December 2022. Therefore management believes that it is appropriate to prepare these financial statements on a going concern basis. (2) Statement of compliance with the Accounting Standards for Business Enterprises The financial statements of the Group and the Company for the year ended 31 December 2022 are in compliance with the Accounting Standards for Business Enterprises and truly and completely present the consolidated and the company’s financial position of the Group and the Company as at 31 December 2022 and their financial performance cash flows and other information for the year then ended. (3) Accounting year The Company’s accounting year starts on 1 January and ends on 31 December. (4) Recording currency The Company’s recording currency is Renminbi (RMB). 137GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (5) Business combinations (a) Business combinations involving enterprises under common control The consideration paid and net assets obtained by the Group in a business combination are measured at the carrying amount. If the acquiree is acquired from a third party by the ultimate controlling party in a prior year the consideration paid and net assets obtained by the Group are measured based on the carrying amounts of the acquiree’s assets and liabilities (including the goodwill arising from the acquisition of the acquiree by the ultimate controlling party) presented in the consolidated financial statements of the ultimate controlling party. The difference between the carrying amount of the net assets obtained from the combination and the carrying amount of the consideration paid for the combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb the difference the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.(b) Business combinations involving enterprises not under common control For business combinations involving enterprises not under common control the Group adopts concentration test to judge whether the acquired production and operation activities or asset groups constitute a business. If the concentration test is passed the Group conducts accounting treatment according to the relevant asset purchase principle; if the concentration test fails the Group will further judge whether it constitutes a business based on whether the relevant groups obtained in the merger have at least one input and one substantive processing process and the combination of the two has a significant contribution to the output capacity.The cost of combination and identifiable net assets obtained by the Group in a business combination are measured at fair value at the acquisition date. Where the cost of the combination exceeds the Group’s interest in the fair value of the acquiree’s identifiable net assets the difference is recognised as goodwill; where the cost of combination is lower than the Group’s interest in the fair value of the acquiree’s identifiable net assets the difference is recognised in profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities. (6) Preparation of consolidated financial statements The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.Subsidiaries are consolidated from the date on which the Group obtains control and are de- consolidated from the date that such control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control it is included in the consolidated financial statements from the date when it together with the Company comes under common control of the ultimate controlling party. The portion of the net profit realised before the combination date is presented separately in the consolidated income statement.In preparing the consolidated financial statements where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common control the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date. 138GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 139GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (6) Preparation of consolidated financial statements (Cont'd) All significant intra-group balances transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ shareholders’ equity and the portion of subsidiaries’ net profits and losses and comprehensive incomes for the period not attributable to the Company are recognised as minority interests net profit or loss attributable to minority interests and total comprehensive income attributable to minority interests and presented separately in the consolidated financial statements under shareholders’ equity net profit and total comprehensive income respectively. When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders’ portion of the opening balance of owners’ equity of the subsidiary the excess is allocated against the balance of minority interests. Unrealised profits and losses resulting from the sale of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to owners of the parent. Unrealised profits and losses resulting from the sale of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to owners of the parent and net profit attributable to minority interests in accordance with the allocation proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to owners of the parent and net profit attributable to minority interests in accordance with the allocation proportion of the parent in the subsidiary.If the accounting treatment of a transaction is inconsistent in the financial statements at the Group level and at the Company or its subsidiary level adjustment will be made from the perspective of the Group. (7) Cash and cash equivalents Cash and cash equivalents comprise cash on hand deposits that can be readily drawn on demand and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (8) Foreign currency translation Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.At the balance sheet date monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period except for those attributable to foreign currency borrowings that have been taken out specifically for acquisition or construction of qualifying assets which are capitalised as part of the cost of those assets. Non- monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement. 140GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (9) Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. A financial asset or a financial liability is recognised when the Group becomes a party to the contractual provisions of the instrument.(a) Financial assets (i) Classification and measurement Based on the Group’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets financial assets are classified as: (1) financial assets at amortised cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at fair value through profit or loss.At initial recognition the financial assets are measured at fair value. Transaction costs that are incremental and directly attributable to the acquisition of the financial assets are included in the initially recognised amounts except for the financial assets at fair value through profit or loss the related transaction costs of which are expensed in profit or loss for the current period. Accounts receivables arising from sale of products or rendering of services (excluding or without regard to significant financing components) are initially recognised at the consideration that is entitled to be received by the Group as expected.Debt instruments The debt instruments held by the Group refer to the instruments that meet the definition of financial liabilities from the perspective of the issuer and are measured in the following categories: Measured at amortised cost: The objective of the Group’s business model is to hold the financial assets to collect the contractual cash flows and the contractual cash flow characteristics are consistent with a basic lending arrangement which gives rise on specified dates to the contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. The interest income of such financial assets is recognised using the effective interest method. Such financial assets mainly comprise cash at bank and on hand notes receivables accounts receivables other receivables and long-term receivables etc. Long-term receivables that are due within one year (inclusive) as from the balance sheet date are included in the current portion of non-current assets.Equity instruments Investments in equity instruments over which the Group has no control joint control or significant influence are measured at fair value through profit or loss under financial assets held for trading.In addition at initial recognition a portion of certain investments in equity instruments not held for trading are designated as financial assets at fair value through other comprehensive income under other investments in equity instruments. The relevant dividend income of such financial assets is recognised in profit or loss for the current period. 141GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (9) Financial instruments (Cont’d) (a) Financial assets (Cont’d) (ii) Impairment The Group recognises the loss provision on the basis of the ECL for financial assets and contract assets measured at amortised cost.Giving consideration to reasonable and supportable information that is available without undue cost or effort at the balance sheet date on past events current conditions and forecasts of future economic conditions weighted by the probability of default the Group recognises the ECL as the probability-weighted amount of the present value of the difference between the cash flows receivable from the contract and the cash flows expected to collect.For accounts receivables and contract assets arising from sale of goods and rendering of services in the ordinary course of operating activities the Group recognises the lifetime ECL regardless of whether there exists a significant financing component.Except for the above accounts receivables and contract assets at each balance sheet date the ECL of financial instruments at different stages is measured respectively. 12-month ECL is recognised for financial instruments in Stage 1 which don’t have a significant increase in credit risk since initial recognition; lifetime ECL is recognised for financial instruments in Stage 2 which have had a significant increase in credit risk since initial recognition but are not deemed to be credit-impaired; and lifetime ECL is recognised for financial instruments in Stage 3 that are credit- impaired.For the financial instruments with low credit risk as at the balance sheet date the Group assumes there is no significant increase in credit risk since initial recognition. The Group determines them as the financial instruments in Stage 1 and recognises the 12-month ECL.For the financial instruments in Stage 1 and Stage 2 the interest income is calculated by applying the effective interest rate to the book balance (before net of ECL provision). For the financial instrument in Stage 3 the interest income is calculated by applying the effective interest rate to the amortised cost (net of ECL provision).In case the ECL of an individually assessed financial asset cannot be evaluated with reasonable cost the Group classifies the receivables into certain groups on the basis of shared risk characteristics and calculates the ECL for each group respectively. Basis for determining groups and method for provision are as follows: 142GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (9) Financial instruments (Cont’d) (a) Financial assets (Cont’d) (ii) Impairment (Cont’d) Group 1 of notes receivables Notes receivables Group 1 of accounts receivables Receivables from sale of electricity Group 2 of accounts receivables Receivables from related parties Group 3 of accounts receivables Receivables from sale of steam and others Group 1 of contract assets Receivables from related parties Group 2 of contract assets Other contract assets Receivables from business units reserves receivable and Group 1 of other receivables other receivables For accounts receivables that are classified into groups the Group prepares a comparison table of the overdue days of receivables and the lifetime ECL rate and calculates ECL with reference to the historical credit loss experience the current situation and the forecast of future economic conditions. For other receivables that are classified into groups the Group calculates the ECL with reference to historical credit loss experience current conditions and forecasts of future economic conditions and based on the exposure at default and the 12-month or lifetime ECL rates.The Group recognises the loss provision made or reversed into profit or loss for the current period. 143GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (9) Financial instruments (Cont’d) (a) Financial assets (Cont’d) (iii) Derecognition A financial asset is derecognised when one of the following criteria is satisfied: (i) the contractual rights to receive the cash flows from the financial asset are expired (ii) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of ownership of the financial asset to the transferee or (iii) the financial asset has been transferred and the Group has not retained control of the financial asset although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset.When a financial asset is derecognised the difference between the carrying amount and the consideration received as well as the cumulative changes in fair value that are previously recognised directly in other comprehensive income is recognised in profit or loss for the current period except for those measured at fair value through other comprehensive income the difference aforementioned is recognised in retained earnings instead.(b) Financial liabilities Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair value through profit or loss at initial recognition.Financial liabilities of the Group mainly comprise financial liabilities at amortised cost including notes payables accounts payables other payables borrowings and debentures payable etc.Such financial liabilities are initially recognised at fair value net of transaction costs incurred and subsequently measured using the effective interest method. Financial liabilities with maturities of no more than one year (inclusive) are presented as current liabilities and those with maturities of over one year but due within one year (inclusive) as from the balance sheet date are presented as current portion of non-current liabilities; and others are presented as non-current liabilities. 144GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (9) Financial instruments (Cont’d) (b) Financial liabilities (Cont’d) A financial liability is derecognised or partly derecognised when the underlying present obligation is discharged or partly discharged. The difference between the carrying amount of the derecognised part of the financial liability and the consideration paid is recognised in profit or loss for the current period.(c) Determination of fair value of financial instruments The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. In valuation the Group adopts valuation techniques applicable in the current situation and supported by adequate available data and other information selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or liabilities by market participants and gives priority to the use of relevant observable inputs. When relevant observable inputs are not available or feasible unobservable inputs are adopted. (10) Inventories (a) Classification Inventories mainly comprise fuel and spare parts and are measured at the lower of cost and net realisable value.(b) Valuation of inventories Cost of fuel is calculated using the weighted average method. Spare parts are amortised in full amount when issued for use.(c) Basis for determining net realisable values of inventories and method for making provision for decline in the value of inventories Provision for decline in the value of inventories is determined at the excess amount of the carrying amount of the inventories over their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale and related taxes.(d) The Group adopts the perpetual inventory system.(e) Amortisation methods of low-value consumables Low value consumables are amortised in full amount. 145GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (11) Long-term equity investments Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries and the Group’s long-term equity investments in its joint ventures and associates.Subsidiaries are the investees over which the Company is able to exercise control. A joint venture is a joint arrangement which is structured through a separate vehicle over which the Group has joint control together with other parties and only has rights to the net assets of the arrangement based on legal forms contractual terms and other facts and circumstances. An associate is an investee over which the Group has significant influence on its financial and operating policy decisions.Investments in subsidiaries are presented in the Company’s financial statements using the cost method and are adjusted to the equity method when preparing the consolidated financial statements. Investments in joint ventures and associates are accounted for using the equity method.(a) Determination of investment cost For long-term equity investments acquired through a business combination involving enterprises under common control the investment cost shall be the absorbing party’s share of the carrying amount of owners’ equity of the party being absorbed in the consolidated financial statements of the ultimate controlling party at the combination date; for long-term equity investments acquired through a business combination involving enterprises not under common control the investment cost shall be the combination cost.For long-term equity investments acquired not through a business combination: for long-term equity investments acquired by payment in cash the initial investment cost shall be the purchase price actually paid; for long-term equity investments acquired by issuing equity securities the initial investment cost shall be the fair value of the equity securities issued.(b) Subsequent measurement and recognition of profit or loss Long-term equity investments accounted for using the cost method are measured at initial investment cost. Cash dividend or profit distribution declared by the investees is recognised as investment income in profit or loss for the current period.For long-term equity investments accounted for using the equity method where the initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition the investment is initially measured at that cost; where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted upwards accordingly.For long-term equity investments accounted for using the equity method the Group recognises the investment income according to its share of net profit or loss of the investee. The Group does not recognise further losses when the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of the Group’s net investment in the investee is reduced to zero. However if the Group has obligations for additional losses and the criteria with respect to recognition of provisions are satisfied the Group continues recognising the investment losses and the provisions at the amount it expects to undertake. The Group’s share of changes in the investee’s owners’ equity other than those arising from the net profit or loss other comprehensive income and profit distribution is recognised in capital surplus with a corresponding adjustment to the carrying amount of the long-term equity investment. The carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by the investee. Unrealised gains or losses on transactions between the Group and its investees are eliminated to the extent of the Group’s equity interest in the investees based on which the investment income or losses are recognised. Any losses resulting from transactions between the Group and its investees which are attributable to asset 146GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] impairment losses are not eliminated. 2 Summary of significant accounting policies and accounting estimates (Cont’d) (11) Long-term equity investments (Cont’d) (c) Basis for determining existence of control joint control or significant influence over investees Control is the power over investees that can bring variable returns through involvement in related activities of investees and the ability to influence the returns by using such power over investees.Joint control is the agreed sharing of control over an arrangement and the decision of activities relating to such arrangement requires the unanimous consent of the Group and other parties sharing control.Significant influence is the power to participate in making the decisions on financial and operating policies of the investee but is not control or joint control over making those policies.(d) Impairment of long-term equity investments The carrying amounts of long-term equity investments in subsidiaries joint ventures and associates are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 2(18)). (12) Investment properties Investment properties including land use rights that have already been leased out and buildings that are held for the purpose of leasing are measured initially at cost. Subsequent expenditures incurred in relation to an investment property are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise the expenditures are recognised in profit or loss for the period in which they are incurred.The Group adopts the cost model for subsequent measurement of investment properties.Buildings and land use rights are depreciated or amortised to their estimated net residual values over their estimated useful lives. The estimated useful lives the net residual values that are expressed as a percentage of cost and the annual depreciation (amortisation) rates of investment properties are as follows: Estimated net residual Annual depreciation Estimated useful lives values (amortisation) rates Buildings 20 to 40 years 0% to 5% 2.38% to 4.75% Land use rights 60 years 0% 1.67% The investment property’s estimated useful life estimated net residual value and depreciation (amortisation) method applied are reviewed and adjusted as appropriate at each year-end.When an investment property is transferred to owner-occupied property it is reclassified to fixed asset and intangible assets with the carrying amounts determined at the carrying amounts of the investment property at the date of the transfer. 147GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (12) Investment properties (Cont’d) An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal.The net amount of proceeds from sale transfer retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.The carrying amount of an investment property is reduced to the recoverable amount if the recoverable amount is below the carrying amount (Note 2(18)). (13) Fixed assets (a) Recognition and initial measurement of fixed assets Fixed assets comprise buildings power generation equipment motor vehicles and other equipment.Fixed assets are recognised when it is probable that the related economic benefits will flow into the Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition. The fixed assets contributed by the State shareholders at the reorganisation of the Company into a corporation entity are recognised based on the evaluated amounts approved by the state-owned assets administration department.Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss for the period in which they are incurred.(b) Depreciation methods for fixed assets Except for fixed assets purchased using work safety funds (Note 2 (26)) other fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated net residual values over their estimated useful lives. For the fixed assets that have been provided for impairment loss the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.The estimated useful lives the estimated net residual values expressed as a percentage of cost and the annual depreciation rates of fixed assets are as follows: Estimated useful Estimated net lives residual values Annual depreciation rates Buildings 10 to 50 years 0% to 5% 1.90% to 9.50% Power generation equipment 5 to 30 years 0% to 5% 3.17% to 20.00% Motor vehicles 5 to 10 years 0% to 5% 9.50% to 20.00% Other equipment 5 to 22 years 0% to 5% 4.32% to 20.00% The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed and adjusted as appropriate at each year-end. 148GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (13) Fixed assets (Cont’d) (c) The carrying amounts of fixed assets are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 2(18)).(d) Disposals of fixed assets A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds from disposals on sale transfer retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period. (14) Construction in progress Construction in progress is measured at actual cost. Actual cost comprises construction costs installation costs borrowing costs that are eligible for capitalisation and other costs necessary to bring the construction in progress ready for its intended use. Construction in progress is transferred to fixed assets when the asset is ready for its intended use and depreciation is charged starting from the following month. The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below its carrying amount (Note 2(18)). (15) Borrowing costs The borrowing costs that are directly attributable to acquisition and construction of an asset that needs a substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred and the activities relating to the acquisition and construction that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months until the acquisition or construction is resumed.For special borrowings for the acquisition and construction of qualifying assets the capitalised amount of the special borrowings is determined by the interest expenses incurred in the period less interest income of the unused borrowings deposited at bank or investment income from temporary investment. 149GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (15) Borrowing costs (Cont'd) The capitalised amount of general borrowings intended to be used for the acquisition and construction of qualifying assets is determined by the weighted average of the excess of accumulated capital expenditure over capital expenditure of the special borrowings multiplied by the weighted average effective interest rate of the utilised general borrowings. The effective interest rate is the rate at which the future cash flows of the borrowings over the expected lifetime or a shorter applicable period are discounted into the initial recognised amount of the borrowings. (16) Intangible assets Intangible assets include land use rights sea use rights and software and are measured at cost.The intangible assets contributed by the state-owned shareholders upon the reorganisation of the Group into a corporation and favourable contract are recognised based on the evaluated amounts as approved by the state-owned assets administration department.(a) Land use rights and sea use rights Land use rights are amortised on the straight-line basis over their approved use period of 20 to 70 years. If the acquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings all of the acquisition costs are recognised as fixed assets. Allotted land with undetermined useful lives is not amortised.Sea use rights are amortised on the straight-line basis over their approved use period of 25 to 50 years.(b) Other intangible assets Intangible assets other than land use rights and sea use rights are amortised on a straight-line- basis over the expected useful lives of 2 to 60 years.(c) Periodical review of useful life and amortisation method For an intangible asset with a finite useful life review of its useful life and amortisation method is performed at each year-end with adjustment made as appropriate. 150GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (16) Intangible assets (Cont’d) (d) Research and development The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure on the development phase based on its nature and whether there is material uncertainty that the research and development activities can form an intangible asset at the end of the project.Expenditure on the research phase is recognised in profit or loss in the period in which it is incurred. Expenditure on the development phase is capitalised only if all of the following conditions are satisfied: management intends to complete the intangible asset and use or sell it; it can be demonstrated how the intangible asset will generate economic benefits: products with the application of intangible assets or the intangible assets themselves can prove to have market value intangible assets for internal use application can prove to be of usefulness; there are adequate technical financial and other resources to complete the development and the ability to use or sell the intangible asset; it is technically feasible to complete the intangible asset so that it will be available for use or sale; the expenditure attributable to the intangible asset during its development phase can be reliably measured.Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they are incurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalised expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at the date that the asset is ready for its intended use.(e) Impairment of intangible assets The carrying amount of intangible assets is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 2(18)). (17) Long-term prepaid expenses Long-term prepaid expenses include the expenditure for improvements to right-of-use assets 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. 151GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (18) Impairment of long-term assets Fixed assets construction in progress right-of-use assets intangible assets with finite useful lives investment properties that are measured at cost and long-term equity investments in subsidiaries joint ventures and associates are tested for impairment if there is any indication that the assets may be impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount a provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount of an asset is the higher of the fair value less costs to sell and the present value of the future cash flows expected to be derived from it. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.Goodwill that is separately presented in the financial statements is tested at least annually for impairment irrespective of whether there is any indication that it may be impaired. In conducting the test the carrying amount of goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset group or a group of asset groups including the allocated goodwill is lower than its carrying amount the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or group of asset groups and then deducted from the carrying amounts of other assets within the asset group or group of asset groups in proportion to the carrying amounts of assets other than goodwill.Once the above asset impairment loss is recognised it will not be reversed for the value recovered in the subsequent periods. (19) Employee benefits Employee benefits refer to all forms of consideration or compensation given by the Group in exchange for service rendered by employees or for termination of employment relationship which include short-term employee benefits post-employment benefits termination benefits and other long-term employee benefits.(a) Short-term employee benefits Short-term employee benefits include wages or salaries bonus allowances and subsidies staff welfare premiums or contributions on medical insurance work injury insurance and maternity insurance housing funds union running costs and employee education costs and short-term paid absences etc. The short-term employee benefits actually occurred are recognised as a liability in the accounting period in which the service is rendered by the employees with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. Non-monetary benefits are measured at fair value.(b) Post-employment benefits The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period the Group's post-employment benefits mainly include basic pensions unemployment insurance and supplementary pensions and all of them belong to the defined contribution plans; non-planned expenses provided to retired employees fall 152GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] under defined benefit plans. 153GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (19) Employee benefits (Cont'd) (b) Post-employment benefits (Cont'd) Basic pensions The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to the bases and percentage prescribed by the relevant local authorities. When employees retire the relevant local authorities are obliged to pay the basic pensions to them.Supplementary pensions The Group purchases supplementary pensions for employees and pays insurance premium according to the policies of the parent company GEGC.The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.Defined benefit plan For defined benefit plan the Group uses the projected unit credit method and includes the obligation of the defined benefit plan in the accounting period in which the service has been rendered by the employees with a corresponding charge to the profit or loss for the period. The cost of employee benefits arising from defined benefit plans are classified into the following parts: — service cost (including current service cost as well as gains and losses on curtailments and settlements); — net interest expenses on net liabilities of the defined benefit plan (including interest expenses for obligations of the defined benefit plan); and — Changes arising from remeasurement on net liabilities of defined benefit plans.Service cost and net interest expenses on net liabilities of defined benefit plans are included in profit or loss for the current period. Changes arising from remeasurement on net liabilities of defined benefit plans (including actuarial gains or losses) are included in other comprehensive income. 154GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (19) Employee benefits (Cont'd) (c) Termination benefits The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees with a corresponding charge to profit or loss for the current period at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses for a restructuring that involves the payment of termination benefits.Early retirement benefits The Group offers early retirement benefits to those employees who accept early retirement arrangements. The early retirement benefits refer to the salaries and social security contributions to be paid to and for the employees who accept voluntary retirement before the normal retirement date prescribed by the State as approved by the management. The Group pays early retirement benefits to those early retired employees from the early retirement date until the normal retirement date. The Group accounts for the early retirement benefits in accordance with the treatment for termination benefits in which the salaries and social security contributions to be paid to and for the early retired employees from the off-duty date to the normal retirement date are recognised as liabilities with a corresponding charge to the profit or loss for the current period.The differences arising from the changes in the respective actuarial assumptions of the early retirement benefits and the adjustments of benefit standards are recognised in profit or loss in the period in which they occur.The termination benefits expected to be settled within one year since the balance sheet date are classified as employee benefits payable. (20) Dividend distribution Cash dividends are recognised as liabilities in the period in which the dividends are approved by the shareholders’ meeting. (21) Provisions Provisions for product warranties 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. 155GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Loss provision for financial guarantee contracts which are recognised on the basis of ECL are presented as provisions.The provisions expected to be settled within one year since the balance sheet date are classified as current liabilities. 2 Summary of significant accounting policies and accounting estimates (Cont’d) (22) Revenue recognition The Group recognises revenue at the amount of the consideration which the Group expects to be entitled to receive when the customer obtains control over relevant goods or services.(a) Revenue from sale of electricity and heat energy Revenue is recognised when electricity and heat energy are supplied to grid companies or customers and they obtain control over electricity.(b) Revenue from sale of by-products Revenue from the sale of goods is recognised when the Group transfers by-products (such as coal ash) produced by electricity generations to the designated delivery place pursuant to the contract or agreement the resource utilisation enterprise confirms receipt and obtains control over the by-products.(c) Provision of electric power transaction service For the electric power transaction service provided by the Group to external parties upon the receipt of the service revenue is recognised based on the difference between the purchase price and the selling price of electricity.(d) Rendering of services The Group provides maintenance services to external parties. The related revenue is recognised based on the stage of completion within a certain period which is determined based on proportion of costs incurred to date to the estimated total costs. On the balance sheet date the Group re- estimates the stage of completion to reflect the actual status of contract fulfilment.When the Group recognises revenue based on the stage of completion the amount with unconditional collection right obtained by the Group is recognised as accounts receivables and the rest is recognised as contract assets. Meanwhile loss provisions for accounts receivables and contract assets are recognised on the basis of ECL (Note 2(9)). If the contract price received or receivable exceeds the amount for the completed service the excess portion will be recognised as contract liabilities. Contract assets and contract liabilities under the same contract are presented on a net basis.Contract costs include contract fulfilment costs and contract acquisition costs. Costs incurred for provision of maintenance services are recognised as contract fulfilment costs which is recognised as the cost of sale of main operations based on the stage of completion when recognising revenue. 156GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (23) Government grants Government grants refer to the monetary or non-monetary assets obtained by the Group from the government including tax return and financial subsidy etc.Government grants are recognised when the grants can be received and the Group can comply with all attached conditions. If a government grant is a monetary asset it will be measured at the amount received or receivable. If a government grant is a non-monetary asset it will be measured at its fair value. If it is unable to obtain its fair value reliably it will be measured at its nominal amount.Government grants related to assets refer to government grants which are obtained by the Group for the purposes of purchase construction or acquisition of the long-term assets. Government grants related to income refer to the government grants other than those related to assets.Government grants related to assets are recorded as deferred income and recognised in profit or loss on a reasonable and systemic basis over the useful lives of the assets.Government grants related to daily operation that compensate future costs expenses or losses are recorded as deferred income and recognised in profit or loss in reporting the related costs expenses or losses; government grants related to income that compensate incurred costs expenses or losses are recognised in profit or loss directly in the current period. For other government grants related to income that compensate the future costs expenses or losses are recorded as deferred income and deducted against related costs in reporting the related costs expenses or losses; government grants related to income that compensate the incurred costs expenses or losses are deducted against related costs.The Group applies the presentation method consistently to the similar government grants in the financial statements.Government grants that are related to ordinary activities are included in operating profit otherwise they are recorded in non-operating income or expenses. 157GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (24) Deferred tax assets and deferred tax liabilities Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for a temporary difference arising from the initial recognition of assets or liabilities due to a transaction other than a business combination which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.Deferred tax assets are only recognised for deductible temporary differences deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences deductible losses and tax credits can be utilised.Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries associates and joint ventures except where the Group is able to control the timing of reversal of the temporary differences and it is probable that the temporary differences will not be reversed in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries associates and joint ventures will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised the corresponding deferred tax assets are recognised.Deferred tax assets and liabilities are offset when: the deferred tax assets and liabilities are related to the same taxpayer within the Group and the same taxation authority; and that taxpayer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities. 158GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (25) Leases A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.The Group as the lessee At the lease commencement date the Group recognises the right-of-use asset and measures the lease liability at the present value of the lease payments that are not paid at that date. Lease payments include fixed payments the exercise price of a purchase option or termination penalty if the lessee is reasonably certain to exercise that option etc. Variable lease payments in proportion to sales are excluded from lease payments and recognised in profit or loss as incurred. Lease liabilities that are due within one year (inclusive) as from the balance sheet date are included in the current portion of non-current liabilities.Right-of-use assets of the Group comprise leased land use rights buildings machinery and equipment motor vehicles etc. Right-of-use assets are measured initially at cost which comprises the amount of the initial measurement of lease liabilities any lease payments made at or before the commencement date and any initial direct costs less any lease incentives received. If there is reasonable certainty that the Group will obtain ownership of the underlying asset by the end of the lease term the asset is depreciated over its remaining useful life; otherwise the asset is depreciated over the shorter of the lease term and its remaining useful life. The carrying amount of the right-of-use asset is reduced to the recoverable amount when the recoverable amount is below the carrying amount.For short-term leases with a term of 12 months or less and leases of an individual asset (when new) of low value the Group chooses to include the lease payments in the cost of the underlying assets or in the profit or loss for the current period on a straight-line basis over the lease term instead of recognising right-of-use assets and lease liabilities.The Group accounts for a lease modification as a separate lease if both: (1) the modification increases the scope of the lease by adding the right to use one or more underlying assets; (2) the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the contract.For a lease modification that is not accounted for as a separate lease the Group redetermines the lease term at the effective date of the lease modification and remeasures the lease liability by discounting the revised lease payments using a revised discount rate except that the contract changes directly resulting from situations prescribed by the Ministry of Finance that can be used the simplified method. For a lease modification which decreases the scope of the lease or shortens the lease term the Group decreases the carrying amount of the right-of-use asset and recognises in profit or loss any gain or loss relating to the partial or full termination of the lease.For other lease modifications which lead to the remeasurement of lease liabilities the Group correspondingly adjusts the carrying amount of the right-of-use asset. 159GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (25) Leases (Cont'd) The Group as the lessor A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. An operating lease is a lease other than a finance lease.(a) Operating leases Where the Group leases out self-owned buildings and land use rights under operating leases rental income therefrom is recognised on a straight-line basis over the lease term. Variable rental that is linked to a certain percentage of sales is recognised in rental income as incurred.For the rent concessions agreed on existing lease contracts the Group applies the practical expedient to account for the concessions as variable lease payments and record the concessions in profit or loss during the waiving period when the Group selects the simplified method.Except that the above contract changes prescribed by the Ministry of Finance that can be used the simplified method for a lease modification the Group accounts for it as a new lease from the effective date of the modification and considers any lease payments received in advance and receivable relating to the lease before modification as receivables of the new lease. (26) Work safety funds Subsidiaries of the Group engaged in power generation business shall appropriate work safety funds based on the actual revenue in the previous year and at the following percentages: 3% for the proportion of revenue up to RMB 10 million in the previous year; 1.5% for the proportion of revenue between RMB 10 million and RMB 100 million in the previous year; 1% for the proportion of revenue between RMB 100 million and RMB 1000 million in the previous year; 0.8% for the proportion of revenue between RMB 1000 million and RMB 5000 million in the previous year; 0.6% for the proportion of revenue between RMB 5000 million and RMB 10000 million in the previous year; 0.2% for the proportion of revenue exceeding RMB 10000 million in the previous year. Work safety funds are mainly used for the improvement modification and maintenance of safety protection facilities as well as safety production inspection evaluation consultation standardised construction etc. Work safety funds are recognised in profit or loss as the "Special reserve" item for the current period when appropriated. When using the special reserve if the expenditures are expenses in nature the expenses incurred are offset against the special reserve directly when incurred. If the expenditures are capital expenditures when projects are completed and transferred to fixed assets the special reserve should be offset against the cost of fixed assets and a corresponding accumulated depreciation is recognised. Such fixed assets are not depreciated in subsequent periods. 160GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (27) Carbon emission use rights Categorised as an Enterprise with High Emissions the Group needs to fulfil its emission reduction obligations and recognise carbon emission related assets and expenditures per relevant regulations: (i) The present obligations incurred by the Group in fulfilling its emission reduction obligations are measured at the best estimate of the expenditure required and recognised as other payables and non-operating expenses.(ii) The Group purchases carbon emission allowances and recognises related carbon emission rights assets based on the cost paid or payable at the acquisition date and the balance is included in other current assets; the Group makes no accounting treatment for carbon emission allowances purchased at nil consideration; (iii) The Group uses the purchased carbon emission allowances to fulfil its emission reduction obligations and recognises the book balance of the allowances used as a reduction of carbon emission rights assets; the Group makes no accounting treatment if it uses carbon emission allowances purchased at nil consideration to fulfil its obligations; (iv) The Group sells carbon emission allowances and recognises related non-operating income or non-operating expenses based on the difference between the amount received or receivable at the date of sale and the book balance of the allowances sold. (28) Segment information The Group identifies operating segments based on the internal organisation structure management requirements and internal reporting system and discloses segment information of reportable segments which is determined on the basis of operating segments.An operating segment is a component of the Group that satisfies all of the following conditions: (a) the component is able to earn revenue and incur expenses from its ordinary activities; (b) 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 (c) for which the information on financial position operating results and cash flows is available to the Group. Two or more operating segments that have similar economic characteristics and satisfy certain conditions can be aggregated into one single operating segment. 161GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (29) Critical accounting estimates and judgements The Group continually evaluates the critical accounting estimates and key judgements applied based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances.(a) Critical judgements in applying the accounting policies (i) Classification of financial assets Significant judgements made by the Group in the classification of financial assets include analysis on business models and contractual cash flow characteristics.The Group determines the business model for financial asset management at the level of different groups and factors to be considered include the methods of evaluation on financial asset performance and reporting of financial asset performance to key management personnel risks affecting financial asset performance and management methods for such risks the ways in which related business management personnel are remunerated etc.When assessing whether contractual cash flow characteristics of financial assets are consistent with basic lending arrangement key judgements made by the Group include: the possibility of changes in timing or amount of the principal during the duration due to reasons such as early repayment; whether interest only include time value of money credit risks other basic lending risks and considerations for costs and profits. For example whether the amount of prepayment only reflects the principal outstanding and the interest based on the principal outstanding as well as the reasonable compensation due to the early termination of the contract.(ii) Determination of significant increase in credit risk When the Group classifies financial instruments into different stages its criteria for significant increase in credit risk and credit-impaired are as follows: Judgement of the Group for significant increase in credit risk is mainly based on whether one or more of the following indicators changed significantly: business environment of the debtor internal and external credit rating significant changes in actual or expected operating results significant decrease in value of collateral or credit rate of guarantor etc.Judgement of the Group on the occurred credit impairment is mainly based on whether it meets one or more of the following conditions: the debtor is suffering significant financial difficulties engaged in other debt restructuring or it is probable that the debtor will enter bankruptcy etc. 162GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (29) Critical accounting estimates and judgements (Cont’d) (a) Critical judgements in applying the accounting policies (Cont’d) (iii) Timing of revenue recognition With regard to sale of electricity to grid companies the Group supplies electricity to grid companies in accordance with the contract. Thereafter the grid companies have the right to sell electricity and the discretion in pricing and take the risks of any price fluctuation or loss of the products. The Group believes that the grid companies obtain control over electric power upon the receiving of the electric power. Therefore revenue is recognised upon the receiving of the electric power of grid companies.(b) Critical accounting estimates and key assumptions The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below: (i) Assessment on impairment of fixed assets A fixed asset is tested for impairment by the Group if there is any indication that it may be impaired at the balance sheet date by calculating and comparing the recoverable amount of the fixed asset with its carrying amount to check the difference. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount a provision for impairment and an asset impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. The determination of the recoverable amount involves accounting estimates.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 disposals 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.The calculation of the present value of future cash flows involves management’s significant estimates and judgements including the discount rate the growth rate of the estimated on-grid electricity price the growth rate of the estimated electricity sale and the varability rate of the estimated price of coal used in power generation. Changes in these assumptions 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. 163GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (29) Critical accounting estimates and judgements (Cont’d) (b) Critical accounting estimates and key assumptions (Cont’d) (ii) Measurement of ECL The Group calculates ECL through exposure at default and ECL rates and determines the ECL rates based on probability of default and loss given default. In determining the ECL rates the Group uses data such as internal historical credit loss experience etc. and adjusts historical data based on current conditions and forward-looking information.When considering forward-looking information the Group considered different macroeconomic scenarios. Significant macroeconomic assumptions and parameters related to the estimation of ECL include the risk of economic downturn external market environment technological environment changes in customer conditions Gross Domestic Product (“GDP”) and Consumer Price Index (“CPI”) etc. The Group regularly monitors and reviews assumptions and parameters related to the calculation of ECL.(iii) Income taxes and deferred income taxes The Group is subject to income taxes in numerous jurisdictions. There are some transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income tax in each of these jurisdictions. Where the final tax outcomes of these matters are different from the amounts that were initially recorded such differences will impact the income tax and deferred income tax provisions in the period in which such determination is made.As stated in Note 3(2) some subsidiaries of the Group are high-tech enterprises. The high-tech enterprise certificate is effective for three years. Upon expiration application for high-tech enterprise identification should be submitted again to the relevant government authorities. Based on the historical experience of reassessment for high-tech enterprise upon expiration and the actual condition of the subsidiaries the Group considers that the subsidiaries are able to obtain the qualification for high-tech enterprises in future years and therefore a preferential tax rate of 15% is used to calculate the corresponding deferred income tax. If some subsidiaries cannot obtain the qualification for high-tech enterprise upon expiration then the subsidiaries are subject to a statutory tax rate of 25% for the calculation of the income tax which further influences the recognised deferred tax assets deferred tax liabilities and income tax expenses. 164GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (29) Critical accounting estimates and judgements (Cont’d) (b) Critical accounting estimates and key assumptions (Cont’d) (iii) Income taxes and deferred income taxes (Cont’d) A deferred tax asset is recognised for the carryforward of unused deductible losses to the extent that it is probable that future taxable profits will be available against which the deductible losses can be utilised. Future taxable profits include taxable profits that can be achieved through normal operations and the increase in taxable profits due to the reversal of taxable temporary differences arising from previous period in future period. The Group determines the future taxable profits based on the future financial forecast which requires management’s significant estimates and judgements including the estimated electricity sale estimated on-grid electricity price the estimated price of coal used in power generation and other operating expenses. If there is any difference between the actual and the estimates adjustment may be made to the carrying amount of deferred tax assets. (30) Significant changes in accounting policies The Ministry of Finance released the Circular on Issuing Interpretation No. 15 of Accounting Standards for Business Enterprises (Interpretation No. 15) in 2021 and Q&A on Implementation of Accounting Standards for Business Enterprises and other documents in 2022. The financial statements for the year ended 31 December 2022 have been prepared by the Group and the Company in accordance with the above circulars and Q&A. The revisions have no significant impacts on the financial statements of the Group and the Company except for the following.(a) Fixed assets - Accounting treatment of sales proceeds before intended use The Group and the Company applied the Interpretation No. 15 related to fixed assets - accounting treatment of sales proceeds before intended use from 1 January 2022. For the sale proceeds before intended use occurred between 1 January 2021 and the implementation date the Group applied the amendments retrospectively and the comparative financial statements of 2021 have been restated accordingly. The above changes in accounting policies have no impact on the balance sheet as of 1 January 2021.The Company had no sale proceeds before intended use occurred between 1 January 2021 and the implementation date and the above changes in accounting policies have no impact on the financial statements of the Company for the year ended 31 December 2021. 165GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Summary of significant accounting policies and accounting estimates (Cont’d) (30) Significant changes in accounting policies (Cont’d) (a) Fixed assets - Accounting treatment of sales proceeds before intended use (Cont’d) The amounts affected (i) The line items affected 31 December 2021 The Group (positive numbers for debit and negative numbers for credit) The Group’s wind power plant projects Long-term equity were tested for its intended use in 2021. investments 1941486 The Group recognised the sale Fixed assets 201973167 proceeds and related cost incurred Construction in progress 75964697 before intended use in revenue and cost Deferred tax assets (58247231) of sale respectively and adjusted Capital surplus 18476872 construction in progress accordingly. Undistributed profits (219582503) The wind power plant projects became Minority interests (20526488) available for use in June 2021. For projects transferred to fixed assets in 2021 2021 the Group adjusted fixed assets Revenue (290642655) and charged depreciation expenses accordingly. The Group retrospectively Cost of sale 12704791 amended investment income and long- Investment income (1941486) term equity investments for associates’ Income tax expenses 58247231 sale proceeds before intended use accounted for using the equity method.For equity dilution caused by minority shareholders’ capital increase while preparing the production line for its intended use the Group adjusted capital surplus accordingly based on retrospectively adjusted net assets.In addition to the above adjustments the Group also reclassified the cash inflow and outflow derived from the proceeds before intended use of fixed assets from cash flows from investing activities to cash flows from operating activities in 2021 of which the cash received from sale of goods or rendering of services increased by RMB 162478679. 166GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 3 Taxation (1) The main categories and rates of taxes applicable to the Group are set out below: Category Tax base Tax rate/levying rate Value-added tax Taxable value-added amount (Tax payable is 5% 6% 9% and 13% (“VAT”) (a) calculated using the taxable sale amount multiplied by the applicable tax rate less deductible input VAT of the current period) Revenue from hydropower sales 3% City maintenance Amount of VAT paid 5% to 7% and construction tax Educational Amount of VAT paid 3% surcharge Local educational Amount of VAT paid 2% surcharge Enterprise income Taxable income 12.5% 15% 20% and tax 25% Property tax Real estate’s rental income or the residual 12% and 1.2% value from original value less the deducting proportion Environmental Calculated and paid based on the pollution Calculated and paid protection tax equivalent values or the discharge of based on the (b) taxable pollutants multiplied by the applicable tax applicable tax amounts amounts of different pollutants (a) Pursuant to the Announcement on Relevant Policies for Deepening the Value-added Tax Reform (Cai Shui Haiguan [2019] No. 39) jointly issued by the Ministry of Finance the State Taxation Administration and the General Administration of Customs and relevant regulations the Group’s revenue from sale of electricity sale of by-products maintenance and repair services etc. and revenue arising from sale of heat energy is subject to VAT at the rate of 13% and 9% from 1 April 2019. The Group’s revenue from entrusted loan business among companies and training service is subject to VAT at the rate of 6%. The operating leases of the real estates under simplified taxation method is subject to VAT at a rate of 5%.Pursuant to Notice on the Policy of Streamlining and Combination of Value-added Tax Levy Rates jointly issued by the Ministry of Finance and the State Taxation Administration revenue from sale of electricity generated from small hydropower units at the county level or below is subject to VATat the rate of 3%. Three small hydropower plants of Lincang Yudean Energy Co. Ltd. (“LincangEnergy”) a subsidiary of the Group are subject to VAT at the rate of 3%.Pursuant to the provisions including the Circular on Enterprise Income Tax Policy concerning Deductions for Equipment and Appliances (Cai Shui [2018] No. 54) and the Announcement on Extending the Implementation Period of Certain Preferential Tax Policies (Cai Shui [2021] No. 6) issued by the State Taxation Administration during the period from 1 January 2018 to 31 December 2023 the cost of equipment with the original cost less than RMB 5000000 newly purchased by Guangdong Yudean Power Sales Co. Ltd. (“Power Sales”) a subsidiary of the Group can be fully deducted against taxable profit in the next month after the asset is put into use instead of being depreciated annually for tax filing. 167GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 3 Taxation (Cont’d) (1) The main categories and rates of taxes applicable to the Group are set out below (Cont’d): (b) According to the Environmental Protection Tax Law of the People’s Republic of China the Group has applied the environmental protection tax since 1 January 2018. The taxation objects include air pollutants water pollutants solid waste and noise. Taxation is based on the amount of pollutants’ emissions. (2) Tax preference (a) Pursuant to the approval documents (Cai Shui [2008] No. 46 and Guo Shui Fa [2009] No. 80) the Company and several subsidiaries are approved to engage in wind power projects and photovoltaic projects since 1 January 2008 and are exempted from enterprise income tax in the first three years counting from the year when revenue from production and operations of those projects is recorded for the first time and can enjoy half rate reduction in the following three years (“three-year exemptions and three-year halves”).Pursuant to the Supplementary Notice on Issues Concerning the Preferential Enterprise Income Tax Policies for Public Infrastructure Projects (Cai Shui [2014] No. 55) enterprises invest and operate public infrastructure projects in compliance with the List of Public Infrastructure Projects Enjoying Enterprise Income Tax Preferential those which adopt one-off approval and are subject to construction in batches (such as terminals berths airport terminals runways sections generator units etc.) are subject to income tax calculated in units of each batch and enjoy the tax preferential policy of “three-year exemptions and three-year halves” when the following conditions are satisfied: (i) different batches are space-independent; (ii) each batch has its own revenue function; (iii) they are accounted for in units of each batch and are subject to income tax individually while the period expenses are allocated rationally. In 2022 the Group’s subsidiary Guangdong Yudean Qujie Wind Power Co. Ltd. (“Qujie Wind Power”) and Guangdong Yudean Pingyuan Wind Power Co. Ltd. (“Pingyuan Wind Power”) met the above conditions. Therefore Qujie Youhao wind power project (the first time for which revenue from sale of power was posted was 2017) Qujie Wailuo offshore wind power project (Phase I) (the first time for which revenue from sale of power was posted was 2019) Qujie Wailuo offshore wind power project (Phase II) (the first time for which revenue from sale of power was posted was 2021) and Xinliao offshore wind power project (the first time for which profits were posted was 2021) Pingyuan maoping project (the first time for which revenue from sale of power was posted was 2020) and Pingyuan Sishui project (the first time for which revenue from sale of power was posted was 2021) of QujieWind Power System and Pingyuan Wind Power are entitled to the tax preferential policy of “three-year exemptions and three-year halves” respectively according to each wind power project. 168GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 3 Taxation (Cont’d) (2) Tax preference (Cont’d) (b) In 2020 and 2022 Zhanjiang Electric Co. Ltd. (“Zhanjiang Electric”) and Guangdong Yudean Zhanjiang Biomass Power Generation Co. Ltd. (“Biomass Power Generation”) subsidiaries of the Group were granted High-tech Enterprise Certificate (Certificate No. GR202044010003 and Certificate No. GR202244008597) by the Department of Science and Technology of Guangdong Province Department of Finance of Guangdong Province and Guangdong Provincial Office of the State Taxation Bureau on 9 December 2020 and 22 December 2022 respectively. The certificates are valid for three years. Under Article 28 of the Enterprise Income Tax Law of the People’s Republic of China the enterprise income tax rate applicable to Zhanjiang Electric and Biomass Power Generation for the year of 2022 is 15%.(c) In accordance with regulations of the Notice on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13) Announcement of the State Taxation Administration on Matters Concerning the Implementation of Preferential Income Tax Policies Supporting the Development of Small Low-Profit Enterprises and Individual Industrial and Commercial Households (STA Announcement [2021] No. 8) and Announcement on Further Implementing Preferential Income Tax Policies for Small and Micro Enterprises ([2022] No. 13) for a small enterprise with low profits for the part of the annual taxable income not exceeding RMB 1000000 the amount of taxable income is reduced to 12.5% of income and is subject to the enterprise income at the tax rate of 20%; for the part between RMB 1000000 and RMB 3000000 the amount of taxable income is reduced to 25% of income and is subject to the enterprise income at the tax rate of 20%. The aforementioned small low-profit enterprise engages in industries not restricted or prohibited by the state and concurrently meet the three conditions that is the annual taxable amount is not more than RMB 3000000 the number of its employees is not more than 300 and their total assets do not exceed RMB 50000000. In 2022 some of the Company's subsidiaries were entitled to the aforesaid preferential tax policy.(d) Pursuant to Notice on Issues Concerning the Implementation of the Preferential Catalogue of Enterprise Income Tax for Integrated Utilisation of Resources (Cai Shui [2008] No. 47) since 1 January 2008 enterprises use the resources listed in the Preferential Catalogue of Enterprise Income Tax for Integrated Utilisation of Resources (2008 Edition) as the main raw materials to produce products in the above catalogue that meet national or industry related standards and the income from above products is reduced to 90% of the total income of the enterprises for the year.The Group’s subsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power Plant Co.Ltd. (“Pinghai Power Plant”) use coal ash to produce commercial coal ash which meets the above-mentioned preferential tax conditions for integrated utilisation of resources. The Group’ssubsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power Plant Co. Ltd. (“PinghaiPower Plant”) use coal ash to produce commercial coal ash which meets the above-mentioned preferential tax conditions for integrated utilisation of resources. Therefore in 2022 revenue from sale of coal ash from Zhanjiang Electric and Ping Hai Power Plant was reduced to 90% of the total income for the year.(e) Pursuant to the Notice on Issuing the Catalogue of Value-Added Tax Preferences for Products and Labour Services Involving the Comprehensive Utilisation of Resources (Cai Shui [2015] No. 78) VAT levied on self-produced products and services for comprehensive utilisation of resources will be refunded immediately to which Biomass Power Generation’s VAT after offsetting output VAT from revenue against input VAT from cost of sale from main operations is entitled to.Biomass Power Generation is a subsidiary mainly engaged in power generation using biomass materials.In addition 50% of VAT levied on the sale of electricity generated by Guangdong Yudean Shibeishan Wind Power Co. Ltd. (“Shibeishan Wind Power”) Guangdong Yudean Zhanjiang Wind Power Generation Co. Ltd. (“Zhanjiang Wind Power”) Guangdong Yudean Xuwen Wind Power Electricity Co. Ltd. (“Xuwen Wind Power”) Guangdong Yudean Dianbai Wind Power Co.Ltd. (“Dianbai Wind Power”) Huilai Wind Power Co. Ltd. (“Huilai Wind Power”) and Guangdong Yueneng Wind Power Co. Ltd. (“Yueneng 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). 169GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (1) Cash at bank and on hand 31 December 2022 31 December 2021 Cash on hand 46435 83108 Cash at bank 2705136812 1554213074 Energy Group Finance Company (b) 8777022027 6514354377 - Deposits 8728625253 6468820757 - Interest receivable 36396774 39533620 - Other cash balances (c) 12000000 6000000 Other cash balances (c) 21318344 36670394 115035236188105320953 (a) As at 31 December 2022 the Group had no offshore deposit (31 December 2021: Nil).(b) Deposits with Energy Group Finance Company refer to the deposits placed in Energy Group Finance Company (Note 8(6)). Energy Group Finance Company is a financial institution established with the approval of the People’s Bank of China. Both the Company and Energy Group Finance Company are controlled by GEGC.(c) As at 31 December 2022 other cash balances of RMB 33318344 (31 December 2021: RMB 42670394) mainly represented deposits for ecological protection and performance guarantees among which other cash balances placed in Energy Group Finance Company was RMB 12000000 (31 December 2021: RMB 6000000) (Note 8(6)). (2) Accounts receivables 31 December 2022 31 December 2021 Accounts receivables 7579203103 7030948863 Less: Provision for bad debts (566859) (263506) 75786362447030685357 (a) The ageing of accounts receivables is analysed as follows: 31 December 2022 31 December 2021 Within 1 year 6943600556 6602371992 1 to 2 years 364750508 306931561 2 to 3 years 243473499 119940421 Over 3 years 27378540 1704889 75792031037030948863 170GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (2) Accounts receivables (Cont’d) (b) As at 31 December 2022 the five largest accounts receivables aggregated by debtors are analysed as follows: Provision for % of total Balance bad debts balance Total amount of the five largest accounts receivables 7436142873 - 98.11% (c) Provision for bad debts For accounts receivables the Group recognises the lifetime ECL regardless of whether there exists a significant financing component.As at 31 December 2022 provision for bad debts made on a collective basis for accounts receivables is analysed as follows: Group 1: As at 31 December 2022 the Group’s receivables from sale of electricity amounted to RMB 7491837601 (31 December 2021: RMB 6974790832) which mainly comprised receivables of RMB 7357403891 from China Southern Power Grid Co. Ltd. and its subsidiaries (collectively referred to as “China Southern Power Grid”) and RMB 134433710 from State Grid Corporation of China (“State Grid”) and its subsidiaries. Considering the favourable credit history of China Southern Power Grid and State Grid the Group held that there was no significant credit risk arising from receivables from sale of electricity. Since the possibility of material losses due to the default by China Southern Power Grid and State Grid was extremely low the Group made no provision for the ECL of the receivables from sale of electricity (31 December 2021: Nil).Group 2: As at 31 December 2022 the Group’s receivables from related parties amounted to RMB 39546687 (31 December 2021: RMB 32237080) and the historical loss rate was extremely low. Therefore The Group held that there was no significant credit risk arising from receivables from related parties. Since the possibility of material losses due to the default by related parties was extremely low the Group made no provision for the ECL for the receivables from related parties (31 December 2021: Nil). 171GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (2) Accounts receivables (Cont’d) (c) Provision for bad debts (Cont’d) Group 3: 31 December 2022 31 December 2021 Book Book balance Provision for bad debts balance Provision for bad debts Lifetime ECL Lifetime ECL Amount rates Amount Amount rates Amount Within 1 year 46948057 0.95% (445712) 23836136 0.97% (231175) 1 to 2 years 805943 10.00% (80594) 35568 10.00% (3557) 2 to 3 years 35568 31.79% (11306) 29247 30.00% (8774) Over 3 years 29247 100.00% (29247) 20000 100.00% (20000) 47818815(566859)23920951(263506) (d) As at 31 December 2022 the right to collect electric charges of the Group’s certain subsidiaries were pledged to banks to obtain long-term borrowings of RMB 6052250122 including current portion of long-term borrowings of RMB 512741564 (31 December 2021: long-term borrowings of RMB 6002119898 including current portion of long-term borrowings of RMB 386056214). 172GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (3) Advances to suppliers 31 December 2022 31 December 2021 Advances to suppliers 1535097252 892886238 Less: Provision for impairment (115000) (115000) 1534982252892771238 (a) The ageing of advances to suppliers is analysed as follows: 31 December 2022 31 December 2021 Amount % of total balance Amount % of total balance Within 1 year 1532647170 99.84% 890361044 99.72% 1 to 2 years 1525236 0.10% 1256263 0.14% 2 to 3 years 370407 0.02% 563276 0.06% Over 3 years 554439 0.04% 705655 0.08% 1535097252100.00%892886238100.00% As at 31 December 2022 advances to suppliers with ageing over one year amounted to RMB 2450082 (31 December 2021: RMB 2525194) mainly including prepayments for spare parts and materials.(b) Provision for impairment accrued in the current year 20222021 Opening balance (115000) (803017) Write-off in the current year - 688017 Reversal in the current year - - Ending balance (115000) (115000) (c) As at 31 December 2022 the five largest advances to suppliers aggregated by debtors are analysed as follows: Amount % of total balance Total amount of advances to five largest debtors 1420215456 92.52% 173GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (4) Other receivables 31 December 2022 31 December 2021 Land withdrawal receivable 285763798 302530718 Current accounts receivables from related parties (Note 8(6)) 258446096 1740236196 Receivables from sale of by-products 142602487 95418898 Including: Receivables from related parties (Note 8(6)) 131141189 76772719 Supplementary medical insurance fund receivable 102914387 98784664 Receivables from business units 75047046 118932979 Land deposits receivable 23446000 23446000 Compensation receivable for electricity charges during the demolition and construction period 7099200 15824336 Petty cash receivable 3460868 2646600 Others 71308102 69403144 9700879842467223535 Less: Provision for bad debts (35303832) (37747977) 9347841522429475558 (a) The ageing of other receivables is analysed as follows: 31 December 2022 31 December 2021 Within 1 year 512250821 2226475458 1 to 2 years 249175803 168657304 2 to 3 years 153072185 5694340 Over 3 years 55589175 66396433 9700879842467223535 174GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (4) Other receivables (Cont’d) (b) Loss provision and changes in book balance Stage 1 Stage 3 Lifetime ECL (credit 12-month ECL (group) 12-month ECL (individual) Sub-total impaired) Total Provision for Provision for Provision for Book Provision for Provision for Book balance bad debts Book balance bad debts bad debts balance bad debts bad debts 31 December 2021 135587452 (18131497) 2312019603 - (18131497) 19616480 (19616480) (37747977) Increase in the current year 80560005 (6252264) 4129723 - (6252264) - - (6252264) Reversal in the current year (60565705) 7787920 (1520351085) - 7787920 (330827) 330827 8118747 Write-off in the current year (27250) 27250 - - 27250 (550412) 550412 577662 Transfer to Stage 3 (2926022) 2926022 - - 2926022 2926022 (2926022) - 31 December 2022 152628480 (13642569) 795798241 - (13642569) 21661263 (21661263) (35303832) 175GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (4) Other receivables (Cont’d) (b) Loss provision and changes in book balance (Cont’d) As at 31 December 2022 and 31 December 2021 the Group did not have other receivables at Stage 2. Other receivables at Stage 1 and Stage 3 are analysed as follows: (i) As at 31 December 2022 other receivables for which the related provision for bad debts was provided on the individual basis are analysed as follows: Provision Book 12-month for bad balance ECL rates debts Reason Stage 1 The counterparty is a related party with Receivables from a historical loss rate of 0% ; therefore related parties 389587285 - - the risk of ECL is extremely low.Land withdrawal The counterparty is a government unit receivable 271989298 - - and the risk of ECL is extremely low.The counterparty is Taikang Pension Co. Ltd. Guangdong Branch (“Taikang Pension”) which mainly provides custody services for the Group’s supplementary medical Supplementary insurance fund. The historical loss rate medical insurance is 0% and the risk of ECL is extremely fund receivable 102914387 - - low.Land deposits The counterparty is a government unit receivable 23446000 - - and the risk of ECL is extremely low.Compensation receivable for The demolition and construction project electricity charges is initiated by the state-owned during the industrial park which pays demolition and compensation expenses and the risk construction period 7099200 - - of ECL is extremely low.The counterparty is a government unit with a historical loss rate of 0%; therefore the risk of ECL is extremely Others 762071 - - low. 795798241- Book Lifetime Provision for balance ECL rates bad debts Reason Stage 3 Receivables from Unrecoverable by estimation since the business units 16591996 100% (16591996) counterparty is financially difficult.Unrecoverable by estimation since the Others 5069267 100% (5069267) counterparty is financially difficult. 21661263(21661263) 176GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (4) Other receivables (Cont’d) (b) Loss provision and changes in book balance (Cont’d) (i) As at 31 December 2021 other receivables for which the related provision for bad debts was provided on the individual basis are analysed as follows (Cont’d): Provision 12-month for bad Book balance ECL rate debts Reason Stage 1 The counterparty is a related party with a historical loss rate of 0% ; Receivables from therefore the risk of ECL is extremely related parties 1817008915 - - low.Land withdrawal The counterparty is a government unit receivable 288756218 - - and the risk of ECL is extremely low.The counterparty is Taikang Pension which mainly provides custody Supplementary services for the Group’s medical supplementary medical insurance insurance fund fund. The historical loss rate is 0% receivable 98784664 - - and the risk of ECL is extremely low.The amount has the performance Receivables from guarantee issued by bank with an business units 58920000 - - extremely low risk of ECL.Land deposits The counterparty is a government unit receivable 23446000 - - and the risk of ECL is extremely low.Compensation receivable for electricity charges during The demolition and construction the demolition project is initiated by the state-owned and industrial park which pays construction compensation expenses and the risk period 15824336 - - of ECL is extremely low.The counterparty is a government unit with a historical loss rate of 0%; therefore the risk of ECL is extremely Others 9279470 - - low. 2312019603- Lifetime Book ECL Provision for balance rates bad debts Reason Stage 3 Unrecoverable by estimation since Receivables from the counterparty is financially business units 13889589 100% (13889589) difficult.Unrecoverable by estimation since the counterparty is financially Others 5726891 100% (5726891) difficult. 19616480(19616480) 177GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (4) Other receivables (Cont’d) (b) Loss provision and changes in book balance (Cont’d) (ii) As at 31 December 2022 and 31 December 2021 other receivables for which the related provision for bad debts was provided on a collective basis are all within Stage 1 which are analysed as follows: 31 December 2022 Book balance Loss provision Amount Amount Provision ratio Group 1 Within 1 year 77606733 (4014982) 5.17% 1 to 2 years 63120629 (1263279) 2.00% 2 to 3 years 2357477 (466557) 19.79% Over 3 years 9543641 (7897751) 61.40% 152628480(13642569)8.94% 31 December 2021 Book balance Loss provision Amount Amount Provision ratio Group 1 Within 1 year 112414194 (909472) 0.81% 1 to 2 years 6183553 (807222) 13.05% 2 to 3 years 860422 (288519) 33.53% Over 3 years 16129283 (16126284) 99.98% 135587452(18131497)13.37% (c) The amount of provision for bad debts of other receivables in the current year was RMB 6252264 (2021: RMB 22488667) and the amount of reversed provision for bad debts of other receivables in the current year was RMB 8118747 (2021: RMB 692002) with corresponding book balance of RMB 60896532 (2021: RMB 54151642).The balance of other receivables that were written off in the current year was RMB 577662 and the provision for bad debts was RMB 577662. 178GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (4) Other receivables (Cont’d) (d) As at 31 December 2022 the five largest other receivables aggregated by debtors are analysed as follows: % of total Provision for Nature Balance Ageing balance bad debts Current accounts Energy Financial Leasing receivables from Within 2 Company related parties 240453119 years 24.79% - People’s Government of Chengjiang Town Meixian District Land withdrawal 2 to 3 Meizhou City receivable 136885400 years 14.11% - Guangdong Yudean Environmental Protection Co. Ltd. Receivables from sale(“Yudean of by-products to Within 1Environmental”) related parties 131141189 year 13.52% - People’s Government of Yamen Town Xinhui Land withdrawal 1 to 2 District Jiangmen City receivable 109094018 years 11.25% - Supplementary medical insurance Within 5 Taikang Pension fund receivable 102914387 years 10.61% - 72048811374.27%- (5) Inventories (a) Inventories are summarised by categories as follows: 31 December 2022 31 December 2021 Provision for Provision for decline in the decline in the value of Carrying value of Carrying Book balance inventories amount Book balance inventories amount Fuel 2451751083 - 2451751083 2189710739 - 2189710739 Spare parts 930548565 (34044608) 896503957 817710542 (34044608) 783665934 Others 28613060 - 28613060 25517866 - 25517866 3410912708(34044608)33768681003032939147(34044608)2998894539 179GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (5) Inventories (Cont’d) (b) Provision for decline in the value of inventories is analysed as follows: Written off in the 31 December 2021 current year 31 December 2022 Spare parts (34044608) - (34044608) (c) Provision for decline in the value of inventories is as follows: Specific basis for determining net realisable value Reason for write-off The carrying amount is higher than the amount of net realisable value of the disposal proceeds less costs Spare parts to sell Nil (6) Other current assets 31 December 2022 31 December 2021 Input VAT to be deducted 822610159 1238295329 Carbon emission rights assets (a) 35890568 295315 Prepayment of income tax 15213902 174867263 Others 1891176 4527701 8756058051417985608 (7) Long-term equity investments 31 December 2022 31 December 2021 (Restated) Joint ventures (a) 891570923 654820514 Associates (b) 8423629394 7536476456 93152003178191296970 Less: Provision for impairment of long-term equity investments (117147134) (117147134) 91980531838074149836 180GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (7) Long-term equity investments (Cont’d) (a) Joint ventures Movements in the current year Share of net Ending balance profit/(loss) Share of other Cash of provision for 31 December Increase in under equity comprehensive dividends 31 December impairment 2021 investments method income declared Others 2022 loss Industry Fuel 645470514 - 64928489 - - - 710399003 - China Aviation Shenxin Wind Power Co. Ltd.(“China AviationShenxin”) (i) - 174328518 - - - - 174328518 - Zhanjiang Yuexin Distributed Energy and Technique Co. Ltd.(“Yuexin Energy”) 9350000 - (2506598) - - - 6843402 - 65482051417432851862421891---891570923- Please refer to Note 6(2) for related information of interest in joint ventures.(i) On 29 December 2022 the Group's subsidiary Guangdong Wind Power Generation Co Ltd. ("Provincial Wind") acquired 51% equity of China Aviation Shenxin at a consideration of RMB 174328518 which was originally held by China Aviation Industry Renewable Energy Corporation ("Aviation Industry Renewable Energy"). As at 31 December 2022 the Group's subsidiary Provincial Wind held 51% equity of China Aviation Shenxin. According to the articles of association of China Aviation Shenxin the resolution of the shareholders' meeting must be unanimously adopted by shareholders representing more than 2/3 of the voting rights. Therefore China Aviation Shenxin is jointly controlled by the Group's subsidiary Provincial Wind and Inner Mongolia Electric Power Survey&Design Institute Co. Ltd. which holds 49% equity. 181GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (7) Long-term equity investments (Cont’d) (b) Associates Movements in the current year Ending Share of net Share of other Share of balance of profit/(loss) comprehensive other Cash dividends provision for 31 December Increase in Decrease in under equity income (Note changes in or profits 31 December impairment 2021 investments investments method 4(36)) equity (ii) declared 2022 loss (Restated) Shanxi Yudean Energy Co.Ltd. (“Shanxi YudeanEnergy”) (i) 2363177253 130000000 - 526175689 - - - 3019352942 - Guangdong Guohua Yudean Taishan Electric Co. Ltd.(“Taishan Electric”) 1784468086 - - 116886446 - - - 1901354532 - Energy Group Finance Company 1666774664 - - 151630673 9938693 - (123894709) 1704449321 - Energy Financial Leasing Company 532306787 - - 23242646 - - (18292179) 537257254 - GEG Property&Casualty Captive Insurance Co. Ltd.(“GEG Property Insurance”) 276532777 - - 11597609 - - (2426770) 285703616 - Guangdong Yudean Shipping Co. Ltd. (“Yudean Shipping”) 247954895 - - 26726321 1855914 636197 - 277173327 - Guizhou Yueqian Power Co.Ltd. (“Yueqian Power”) 161325870 - - 70648616 - - - 231974486 - South Sea Wind Electricity Development Co. Ltd.(“South Sea Wind Electricity”) 169753693 - - 25405459 - - (102550) 195056602 - Yunnan Energy InvestmentWeixin Co. Ltd. (“WeixinYuntou”) 138810051 - - (52510020) - - - 86300031 (96327854) Sub-total for next page 7341104076 130000000 - 899803439 11794607 636197 (144716208) 8238622111 (96327854) 182GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (7) Long-term equity investments (Cont’d) (b) Associates (Cont’d) Movements in the current year Ending Share of net Share of other Share of balance of profit/(loss) comprehensive other Cash dividends provision for Increase in Decrease in under equity income (Note changes in or profits 31 December impairment 31 December 2021 investments investments method 4(36)) equity (ii) declared 2022 loss (Restated) Huaneng Shantou WindPower Co. Ltd. (“HuanengShantou Wind Power”) 60691152 - - 5061794 - - (5530034) 60222912 - Yunfu Power Plant (B Power Plant) Co. Ltd. (“Yunfu B”) 9596285 - - (9596285) - - - - (20819280) Others 7937809 - (2033756) 2315498 - - (582314) 7637237 - Total 7419329322 130000000 (2033756) 897584446 11794607 636197 (150828556) 8306482260 (117147134) Please refer to Note 6(2) for related information of equity in associates. 183GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (7) Long-term equity investments (Cont’d) (b) Associates (Cont’d) (i) As at 29 August 2022 the Company and GEGC increased a capital of RMB 325000000 to Shanxi Yudean Energy in proportion of the shareholding for the investment in wind farm phase II 100MW project in Xiyan Town Mengxian Wuxiang 100MW integrated photovoltaic energy integration project Qinshui 100MW parity photovoltaic project Dabu Xianeng 100MW agricultural photovoltaic complementary project Dongfeng Yueda KIA 36 MW distributed photovoltaic power generation project in Yancheng City Jiangsu Province among which the Company contributed RMB 130000000 at the shareholding proportion of 40%.(ii) In 2022 other changes in equity from long-term equity investments in associates were changes in capital surplus of RMB 636197 (2021: changes in capital surplus of RMB 5383623). (8) Investments in other equity instruments Cash dividends in 31 December 2022 31 December 2021 the current year Investments in equity instrument not held for trading - Equity of listed companies 2105271054 547728682 66846450 - Equity of unlisted companies 952800000 2684300000 34416139 30580710543232028682101262589 184GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (8) Investments in other equity instruments (Cont’d) Including: % of Cash dividends 31 December Movements in the 31 December shareholding in the current 2021 current year 2022 in investee year Investments in other equity instruments - cost - Shanghai Shenergy Co. Ltd. (“Shanghai Shenergy”) (a) 235837988 - 235837988 1.13% 11106450 - Sunshine Insurance (e) 356000000 - 356000000 3.04% 52500000 - Shenzhen Capital Group Co. Ltd. (“SCG”) (c) 328034000 - 328034000 3.67% 34416139 - Others 20290628 2000000 22290628 - 3240000 9401626162000000942162616101262589 Investments in other equity instruments - accumulated changes in fair value - Shanghai Shenergy (a) 173434694 (104400630) 69034064 - Sunshine Insurance (e) 1297500000 42203802 1339703802 - SCG (c) 701966000 (80000000) 621966000 - Others 118965372 (33760800) 85204572 2291866066(175957628)2115908438 Total 3232028682 (173957628) 3058071054 The Group does not participate in or influence the financial and operating decisions of the above investees in any ways. Therefore the Group has no significant influence on the above investees and accordingly they are accounted for as investments in other equity instruments. 185GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (8) Investments in other equity instruments (Cont’d) (a) As at 31 December 2022 the Company held 55532250 tradable A shares in Shanghai Shenergy with fair value of RMB 304872052 and the investment cost was RMB 235837988. The investment was stated at fair value with reference to the market price. During the year losses on fair value amounted to RMB 104400630 (2021: Gains of RMB 119394337) and other comprehensive income was adjusted downwards accordingly.(b) As at 31 December 2022 the Company held 350000000 tradable H shares in Sunshine Insurance with fair value of RMB 1695703802 and the investment cost was RMB 356000000.The investment was stated at fair value with reference to the market price. During the year gains on fair value amounted to RMB 42203800 (2021: Losses of RMB 382500000) and other comprehensive income was adjusted upwards accordingly.(c) As at 31 December 2022 the fair value of the equity that the Company held in SCG amounted to RMB 950000000 and the investment cost was RMB 328034000. During the year losses on fair value amounted to RMB 80000000 (2021: Losses of RMB 18000000) and other comprehensive income was adjusted downwards accordingly. 186GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (9) Investment properties Buildings Land use rights Total Cost - Opening balance 508730777 46042801 554773578 - Additions in the current year 438747 - 438747 - Transfer out in the current year (6646703) - (6646703) - Ending balance 502522821 46042801 548565622 Accumulated depreciation - Opening balance (164834616) (11142030) (175976646) - Increase in the current year (a) (8382937) (903659) (9286596) - Transfer out in the current year 1982921 - 1982921 - Ending balance (171234632) (12045689) (183280321) Carrying amount - Ending balance 331288189 33997112 365285301 - Opening balance 343896161 34900771 378796932 (a) In 2022 depreciation charged to investment properties amounted to RMB 9286596 (2021: RMB 9980869) among which depreciation expenses charged to cost of sale and general and administrative expenses were RMB 8650998 and RMB 635598 (2021: RMB 9345271 and RMB 635598) respectively. (10) Fixed assets 31 December 2022 31 December 2021 (Restated) Fixed assets (a) 62273985182 57047122800 Disposals of fixed assets (b) 126189875 97976623 6240017505757145099423 187GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (10) Fixed assets (Cont’d) (a) Fixed assets Power generation Buildings equipment Motor vehicles Other equipment Total Self-use Self-use Self-use Self-use Cost 31 December 2021 (restated) 30461761423 89377001367 662435852 1477718227 121978916869 Increase in the current year Purchase 134349033 592158863 30097302 39528359 796133557 Transfers from construction in progress (ii) 4242193676 5602827775 16329419 24673176 9886024046 Transfers from investment properties in the current year 6646703 - - - 6646703 Adjustment due to differences in project settlement - - - 344828 344828 Decrease in the current year Disposal and scrap (54322334) (1010811239) (23399532) (27594568) (1116127673) Decrease in disposals of subsidiaries in the current year - (589568) (946774) (155678) (1692020) Adjustment due to differences in project settlement (173882730) (373906790) (1318463) - (549107983) 31 December 2022 34616745771 94186680408 683197804 1514514344 131001138327 188GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (10) Fixed assets (Cont’d) (a) Fixed assets Power generation Buildings equipment Motor vehicles Other equipment Total Self-use Self-use Self-use Self-use Accumulated depreciation 31 December 2021 (restated) (11937538940) (50281958185) (477541422) (1064855631) (63761894178) Increase in the current year Provision (i) (788100674) (3684084079) (36843550) (109796801) (4618825104) Transfers from investment properties in the current year (1982921) - - - (1982921) Decrease in the current year Disposal and scrap 26147085 712018401 21891122 26026064 786082672 Decrease in disposals of subsidiaries in the current year - 406884 908682 152422 1467988 31 December 2022 (12701475450) (53253616979) (491585168) (1148473946) (67595151543) 189GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (10) Fixed assets (Cont’d) (a) Fixed assets Power generation Buildings equipment Motor vehicles Other equipment Total Self-use Self-use Self-use Self-use Provision for impairment 31 December 2021 (236527567) (932674173) (422918) (275233) (1169899891) Increase in the current year Provision (iii) (155592876) - - - (155592876) Others (4519416) - - - (4519416) Decrease in the current year - - - Disposal and scrap 1277211 192205656 - 8298 193491165 Other decreases - 4519416 - - 4519416 31 December 2022 (395362648) (735949101) (422918) (266935) (1132001602) Carrying amount 31 December 2022 21519907673 40197114328 191189718 365773463 62273985182 31 December 2021 (restated) 18287694916 38162369009 184471512 412587363 57047122800 190GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (10) Fixed assets (Cont’d) (a) Fixed assets (Cont’d) As at 31 December 2021 and 31 December 2022 no power generation equipment or buildings were pledged as collateral for long-term borrowings.(i) In 2022 depreciation of fixed assets charged into cost of sale general and administrative expenses construction in progress research and development expenses and selling expenses are set out as follows: 20222021 (Restated) Cost of sale 4404866139 3916896479 Research and development expenses 145433531 36944538 General and administrative expenses 66063836 63638815 Construction in progress 1929448 4583607 Selling expenses 532150 737724 46188251044022801163 (ii) The costs of fixed assets transferred from construction in progress in the current year amounted to RMB 9886024046 (2021: RMB 9445047480) (Note 4(11)(a)(i)). 191GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (10) Fixed assets (Cont’d) (a) Fixed assets (Cont’d) (iii) Impairment of fixed assets In 2022 movements of provision for impairment of fixed assets are as follows: Increase in Decrease in 31 December the current the current 31 December 2021 year year 2022 Guangdong Yuehua Power Co. Ltd. ("Yuehua Power") (Note 1) 538763955 - (164847347) 373916608 Guangdong Yudean Bohe Energy Co. Ltd. ("Bohe Energy") (Note 2) 208000000 - - 208000000 Lincang Energy (Note 3) 200601657 - (461200) 200140457 Guangdong Yudean Shaoguan Power Plant Co. Ltd.(Shaoguan Power Plant) (Note 4) 39598360 75133692 (108588) 114623464 Guangdong Yudean Yangjiang Offshore Wind Power Co.Ltd. (“Yangjiang Wind Power”) (Note 5) - 80459184 - 80459184 Guangdong Electric Power Development Co. Ltd. Shajiao A Power Plant (“Shajiao A Power Plant”) 50656655 - (8298) 50648357 Guangdong Energy Maoming Thermal Power Station Co.Ltd. (“Maoming Thermal”) 29751684 - - 29751684Guangdong Red Bay Power Generation Co. Ltd. (“Red BayPower”) 45049547 - (23821407) 21228140Guangdong Yudean Jinghai Power Co. Ltd. (“JinghaiPower”) 22228873 - (2856886) 19371987 Zhanjiang Electric 18822875 - - 18822875 Guangdong Yudean Yunhe Power Co. Ltd. ("Yunhe Power") 10388437 - - 10388437Guangdong Huizhou Natural Gas Power Co. Ltd. (“HuizhouNatural Gas”) 3230570 - - 3230570 Zhanjiang Zhongyue Energy Co. Ltd. (“Zhongyue Energy”) 2807278 - (1387439) 1419839 1169899891155592876(193491165)1132001602 Note 1 Yuehua Power shut down 5# generator unit at the end of 2019 and 6# generator unit at the end of November 2020. The Group tested the recoverable amount of the asset groups of 5# and 6# generator units that had been shut down and made provision for impairment accordingly. At the end of 2019 a provision for impairment of the related asset group of 5# generator unit amounting to RMB 317686700 and a provision for impairment of the related asset group of 6# generator unit amounting to RMB 251426700 were made. In 2022 Yunhua Power partly disposed of the related assets of 5# and 6# generator units that had been shut down the accumulated provision for impairment written off on such disposals amounted to RMB 164847347 and the balance of provision for impairment amounted to RMB 373916608.Note 2 In 2020 Bohe Energy obtained approval from Guangdong Provincial Development and Reform Committee. As the alternative capacity of some generator units could not be approved management expected that the alternative capacity of these units would not be available for subsequent project construction or sale. Therefore a provision of RMB 208000000 for impairment of fixed assets was made to the capitalised acquisition cost of the alternative capacity of these generator units.Note 3 Due to the fierce competition in the hydroelectric power market in Yunnan Province Lincang Energy a subsidiary of the Group suffered from continuous operating loss. In previous years the Group had made a provision of RMB 200601657 for the impairment of fixed assets for the relevant asset groups of generator units of Lincang Energy.Note 4 In 2022 the asset group of the special railway line docking station for transferring coal for boiler combustion in Shaoguan Power Plant was expected to be unable to be used for future operation because of the gradual decline of railway coal transport capacity. Therefore a provision of RMB 75133692 for impairment of this asset group was made in 2022. 192GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (10) Fixed assets (Cont’d) (a) Fixed assets (Cont’d) (iii) Impairment of fixed assets Note 5 In 2022 part of wind turbine generator units of Yangjiang Wind Power were hit by typhoons and part of their infrastructure was seriously damaged and could not operate normally. Management evaluated the recoverable value of this part of the damaged assets and made a provision for impairment amounting to RMB 80459184 according to the evaluation results.(iv) Impairment of related asset groups of certain subsidiaries that have suffered continuous operating loss in recent years In recent years certain subsidiaries of the Group suffered continuous operating loss and indications of impairment of related asset groups were observed. Taking into consideration risks that may exist in the future such as the instability of electricity demand and price of coal for power generation macro economy and other factors the Group continuously assessed the impairment of the above-mentioned subsidiaries’ power generation asset groups (mainly including fixed assets) in 2022 (refer to Note 2(29)(b)(i) for the assessment method and accounting estimtates involved). The assessment results indicated that the estimated recoverable amounts of the above asset groups were higher than their carrying amounts. Therefore management considered that no provision for impairment should be made.(iv) Fixed assets with pending certificates of ownership: Reasons for not obtaining certificates Carrying amount of ownership Buildings 2121250891 Awaiting government approval As at 31 December 2022 after consulting the Group’s legal consultant management believed that there were no substantial legal obstacles in obtaining the certificates and no material adverse impact on normal operation of the Group would occur.(b) Disposals of fixed assets 31 December 2022 31 December 2021 Parts of power generation equipment 124038520 93602122 Other equipment 2151355 4374501 12618987597976623 (11) Construction in progress 31 December 2022 31 December 2021 (Restated) Construction in progress (a) 11766944424 8707685036 Construction materials 1883737 3006730 117688281618710691766 193GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (11) Construction in progress (Cont’d) (a) Construction in progress 31 December 2022 31 December 2021 (Restated) Provision for Provision for Book balance impairment Carrying amount Book balance impairment Carrying amount Qingzhou offshore wind power project 2342070500 - 2342070500 27475461 - 27475461 Shajiao Ningzhou gas power project 1969185872 - 1969185872 253652368 - 253652368 Guangdong Energy Xinjiang 400000 kW photovoltaic project 1448198206 - 1448198206 - - - Dacheng wind power project 683097937 - 683097937 - - - Yuehua Power substitution of natural gas for coal power project 616219696 - 616219696 57514981 - 57514981 Zhaoqing Dinghu natural gas thermal power cogeneration project 582964452 - 582964452 120337569 - 120337569 Daya Bay petrochemical western thermal power cogeneration project 504579892 - 504579892 37759737 - 37759737 Inner Mongolia Yuefeng 300MW photovoltaic park project 409218078 - 409218078 - - - Dabu Phase II Expansion Project 238826677 - 238826677 25214002 - 25214002 Jinchang Muhong Jinchang District West Slope 100MW photovoltaic power generation project 216333499 - 216333499 - - - Hongdong County 200MW centralised photovoltaic power generation project 207718654 - 207718654 2559959 - 2559959 Qiantang 100MW fishery and solar complementary project in Potou Zhanjiang 194269709 - 194269709 72146 - 72146 Jinchang Mujin Jinchang District West Slope 100MW photovoltaic power generation project 179642763 - 179642763 - - - Laishui Conservancy Energy Laishui County 80MW affordable on-grid photovoltaic power generation project 149824672 - 149824672 - - - Wuhua Huangnizhai Project 130793897 - 130793897 - - - Dongsheng Farm agricultural photovoltaic power generation project (Phase I) in Lianjiang Zhanjiang 122913806 - 122913806 2825114 - 2825114 Changshan Farm agricultural photovoltaic power generation project in Lianjiang Zhanjiang 109540517 - 109540517 2532711 - 2532711 Huadu thermal and power cogeneration project 100715497 - 100715497 1054889800 - 1054889800 Sub-total for next page 10206114324 - 10206114324 1584833848 - 1584833848 194GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 195GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (11) Construction in progress (Cont’d) (a) Construction in progress (Cont’d) 31 December 2022 31 December 2021 (Restated) Provision for Provision for Book balance impairment Carrying amount Book balance impairment Carrying amount Hunan Tongdao Dagaoshan wind power plant project - - - 320622384 - 320622384 Wuxuan Hequn project - - - 413866414 - 413866414 Yangjiang Shapa offshore wind power project - - - 4417942531 - 4417942531 Other infrastructure construction projects 1254443125 (273214618) 981228507 1423911853 (272760361) 1151151492 Technology improvement and other projects 588231904 (8630311) 579601593 827898678 (8630311) 819268367 12048789353(281844929)117669444248989075708(281390672)8707685036 196GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (11) Construction in progress (Cont’d) (a) Construction in progress (Cont’d) (i) Movements of major construction in progress Proportion of Including: Transfer to fixed investment to Capitalised Capitalisation 31 December Increase in the assets in the current Provision for Other 31 December the budget Project Capitalised borrowing costs for rate of Project name Budget 2021 current year year (Note 4(10)(a)(ii)) impairment movements (i) 2022 (%) progress borrowing costs the year borrowing cost Source of fund (Restated) Qingzhou offshore wind power Borrowing and project 17107250000 27475461 2314595039 - - - 2342070500 15.13% 24.90% 30900081 30900081 2.75% own funds Shajiao Ningzhou gas power Borrowing and project 5927600000 253652368 1716265813 - - (732309) 1969185872 33.25% 68.63% 50614908 42963316 3.27% own funds Guangdong Energy Xinjiang 400000 kW photovoltaic Borrowing and project 2226851400 - 1448198206 - - - 1448198206 71.73% 65.03% 11502012 11502012 2.94% own funds Borrowing and Dacheng wind power project 800000000 - 683097937 - - - 683097937 96.00% 100.00% - - - own funds Yuehua Power substitution of natural gas for coal power Borrowing and project 1532190000 57514981 558704715 - - - 616219696 35.36% 36.50% 13558332 13558332 4.18% own funds Zhaoqing Dinghu Natural Gas Thermal Power Borrowing and Cogeneration Project 2998180000 120337569 462626883 - - - 582964452 57.94% 49.86% 35172647 30462326 3.77% own funds Daya Bay petrochemical western thermal power Borrowing and cogeneration project 3820000000 37759737 466820155 - - - 504579892 32.15% 37.86% 10861422 10861422 2.92% own funds Inner Mongolia Yuefeng 300MW photovoltaic park Borrowing and project 1572760000 - 409218078 - - - 409218078 25.16% 22.42% 1726696 1726696 2.45% own funds Dabu Phase II Expansion Borrowing and Project 8134220000 25214002 217448925 - - - 242662927 5.58% 4.02% 3836250 3836250 3.10% own funds Jinchang Muhong Jinchang District West Slope 100MW photovoltaic power Borrowing and generation project 598705600 - 216333499 - - - 216333499 41.09% 47.00% 502510 502510 2.45% own funds Hongdong County 200MW centralised photovoltaic Borrowing and power generation project 516560000 2559959 205158695 - - - 207718654 41.31% 43.86% 1904053 1904053 3.10% own funds Qiantang 100MW fishery and solar complementary project Borrowing and in Potou Zhanjiang 500232000 72146 194197563 - - - 194269709 42.90% 43.55% 2565207 2565207 3.37% own funds Sub-total for next page 524586223 8892665508 - - (732309) 9416519422 163144118 150782205 197GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (11) Construction in progress (Cont’d) (a) Construction in progress (Cont’d) (i) Movements of major construction in progress (Cont’d) Transfer to fixed Including: assets in the Proportion of Capitalised Capitalisation Increase in the current year (Note Provision for Other movements investment to Project Capitalised borrowing costs for rate of Project name Budget 31 December 2021 current year 4(10)(a)(ii)) impairment (i) 31 December 2022 the budget (%) progress borrowing costs the year borrowing cost Source of fund (Restated) Jinchang Mujin Jinchang District West Slope 100MW photovoltaic power Borrowing and generation project 598705600 - 179642763 - - - 179642763 34.03% 44.00% 668245 668245 2.42% own funds Laishui Conservancy Energy Laishui County 80MW affordable on-grid photovoltaic power Borrowing and generation project 376000000 - 149824672 - - - 149824672 38.27% 38.26% 533607 533607 3.00% own funds Borrowing and Wuhua Huangnizhai project 336020000 - 130793897 - - - 130793897 46.00% 41.67% 721326 721326 3.44% own funds Dongsheng Farm agricultural photovoltaic power generation project (Phase I) Borrowing and in Lianjiang Zhanjiang 299020000 2825114 120088692 - - - 122913806 45.40% 65.74% 3420954 3420954 3.10% own funds Changshan Farm agricultural photovoltaic power generation project in Borrowing and Lianjiang Zhanjiang 294690000 2532711 107007806 - - - 109540517 41.18% 62.93% 1980810 1980810 3.10% own funds Huadu thermal and power Borrowing and cogeneration project 3536710000 1054889800 485867256 (1440041559) - - 100715497 69.94% 97.80% 92845058 54388944 3.94% own funds Hunan Tongdao Dagaoshan Borrowing and wind power plant project 531740000 320622384 50942006 (371564390) - - - 96.61% 100.00% 19727145 10010879 4.12% own funds Borrowing and Wuxuan Hequn Plant Project 485000000 413866414 12239666 (426106080) - - - 99.66% 100.00% 20264009 8245177 4.28% own funds Yangjiang Shapa offshore wind Borrowing and power project 5963270000 4417942531 1199702277 (5617644808) - - - 95.29% 100.00% 221735731 65673558 3.25% own funds Other infrastructure Borrowing and construction projects - 1151151492 886127085 (1059432063) (454257) - 977392257 - - 56036231 35931335 - own funds Technology improvement and Borrowing and other projects - 819268367 765199514 (971235146) - (33631142) 579601593 - - 1335162 - - own funds 870768503612980101142(9886024046)(454257)(34363451)11766944424582412396332357040 198GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (11) Construction in progress (Cont’d) (a) Construction in progress (Cont’d) (i) Movements of major construction in progress (Cont’d) Other movements of construction in progress for the year mainly include construction in progress of RMB 34363451 that was completed and transferred to intangible assets.(ii) Provision for impairment of construction in progress Increase in the Item 31 December 2021 current year 31 December 2022 Reason for provision (Restated) Humen Electric 2*1000MW project (137373040) - (137373040) Stoppage of construction Impairment of upfront Impairment of upfront expenses for 5# and expenses for 6# generator units of Jinghai (55389093) - (55389093) construction in progress Impairment of upfront Impairment of upfront expenses for expenses for Guangdong wind power project (43138231) - (43138231) construction in progress Impairment of upfront Impairment of upfront expenses for 5# and expenses for 6# generator units of Red Bay (26446447) - (26446447) construction in progress Impairment of upfront expenses for Others (19043861) (454257) (19498118) construction in progress (281390672)(454257)(281844929) 199GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (12) Right-of-use assets Land use Machinery and Motor rights Buildings equipment vehicles Total Cost 31 December 2021 - 59726188 5800549982 8434545 5868710715 Increase in the current year New lease contracts 361855746 10328178 2087418765 7797726 2467400415 Decrease in the current year Modification of leases - (909835) (854267) (5421630) (7185732) Leases transferred out upon maturity - (6656395) - (1434787) (8091182) 31 December 2022 361855746 62488136 7887114480 9375854 8320834216 Accumulated depreciation 31 December 2021 - (17358410) (593074160) (2153166) (612585736) Increase in the current year Provision (a) (8387293) (21791767) (331125537) (2249943) (363554540) Decrease in the current year Modification of leases - 504728 676138 978488 2159354 Leases transferred out upon maturity - 6656395 - 1434787 8091182 31 December 2022 (8387293) (31989054) (923523559) (1989834) (965889740) Provision for impairment 31 December 2021 - - - - - Increase in the current year Provision - - (2899510) - (2899510) 31 December 2022 - - (2899510) - (2899510) Carrying amount 31 December 2022 353468453 30499082 6960691411 7386020 7352044966 31 December 2021 - 42367778 5207475822 6281379 5256124979 (a) In 2022 depreciation charged to right-of-use assets was RMB 363554540 (2021: RMB 244546772) among which depreciation expenses charged to cost of sale general and administrative expenses selling expenses and construction in progress were RMB 294975923 RMB 18031393 RMB 2736644 and RMB 47810580 (2021: RMB 168487776 RMB 11428272 RMB 2747235 and RMB 61883489) respectively. 200GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (13) Intangible assets Use rights of associated projects for electricity Non-patent Land use rights and transmission and technology and sea use rights transformation Software others Total Cost 31 December 2021 3155681252 260331315 214052599 91714579 3721779745 Increase in the current year Purchase 738127331 - 18999616 101145 757228092 Transfers from construction in progress - - 33631142 732309 34363451 Decrease in the current year Disposal - - (4581951) - (4581951) 31 December 2022 3893808583 260331315 262101406 92548033 4508789337 Accumulated amortisation 31 December 2021 (575637956) (260331315) (138064496) (32517259) (1006551026) Increase in the current year Provision (a) (77523591) - (19748237) (5901618) (103173446) Decrease in the current year Disposal - - 4173004 - 4173004 31 December 2022 (653161547) (260331315) (153639729) (38418877) (1105551468) 201GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (13) Intangible assets (Cont’d) Use rights of associated projects for electricity Non-patent Land use rights and transmission and technology and sea use rights transformation Software others Total Provision for impairment 31 December 2021 (56502373) - - - (56502373) Decrease in the current year - - - - - 31 December 2022 (56502373) - - - (56502373) Carrying amount 31 December 2022 3184144663 - 108461677 54129156 3346735496 31 December 2021 2523540923 - 75988103 59197320 2658726346 (a) In 2022 amortisation charged to intangible assets was RMB 103173446 with cost of sale of RMB 13917919 general and administrative expenses of RMB 71440393 construction in progress of RMB 15582846 and research and development expenses of RMB 2232288 respectively (In 2021 amortisation charged to intangible assets was RMB 83576878 with cost of sale of RMB 4225762 general and administrative expenses of RMB 71354033 and construction in progress of RMB 7581319 and research and development expenses of RMB 415764 respectively). (b) As at 31 December 2022 for the land use rights with a carrying amount of RMB 224004105 (31 December 2021: RMB 40485578) and a cost of RMB 233461861 (31 December 2021: RMB 48689959) the certificates had not been obtained due to incomplete filing documents or the registration procedures were under processing.(c) In 2022 the Group’s expenditures on research and development amounting to RMB 1229311572 (2021: RMB 584714979) were all recognised as research and development expenses in the current period (Note 4(43)). As at 31 December 2022 there were no intangible assets arising from internal research and development of the Group. 202GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (14) Goodwill 31 December 2022 31 December 2021 Goodwill - Tumxuk Thermal Power Co. Ltd.(“Tumxuk Thermal Power”) 119488672 119488672 Others 45531259 45531259 165019931165019931 Less: Provision for impairment - Others (36922378) (25036894) 128097553139983037 (15) Long-term prepaid expenses 31 December Increase in the Amortisation in 31 December 2021 current year the current year 2022 Improvements to right- of-use assets 7965121 9577332 (12845788) 4696665 Insurance expenses - 79363798 (23051376) 56312422 Road use rights - 32028855 (850181) 31178674 Others 22370180 38720 (5110915) 17297985 30335301121008705(41858260)109485746 203GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (16) Deferred tax assets and deferred tax liabilities (a) Deferred tax assets before offsetting 31 December 2022 31 December 2021 (Restated) Deductible Deductible temporary temporary differences and differences and deductible tax Deferred tax deductible tax losses assets losses Deferred tax assets Deductible losses 4176626660 968337573 3189847440 758900259 Provision for asset impairment 392229114 96899577 444961087 109842258 Depreciation of fixed assets 291680433 71206998 309188451 74032411 Unrealised profits from intra-group transactions 656830968 164207742 685896928 171474232 Employee benefits payable 293456521 70088187 305163061 73089625 Government grants 76328527 18673466 95459260 23306593 Amortisation of intangible assets 3328432 832108 4028407 1007101 5890480655139024565150345446341211652479 Including: Expected to be recovered within 1 year (inclusive) 89773324 115084638 Expected to be recovered after 1 year 1300472327 1096567841 13902456511211652479 (b) Deferred tax liabilities before offsetting 31 December 2022 31 December 2021 Taxable temporary Deferred tax Taxable temporary Deferred tax differences liabilities differences liabilities Changes in fair value of investments in other equity instruments included in other comprehensive income (2115908438) (528977110) (2291866066) (572966517) Depreciation of fixed assets (85028556) (21257139) (92116411) (23029104) Revaluation reserve of business combinations involving enterprises not under common control (235501692) (58875422) (272521240) (68130309) Amortisation of land use rights (15302244) (3825561) (15685439) (3921360) Interest receivable (9606414) (2401603) (10071856) (2517964) (2461347344)(615336835)(2682261012)(670565254) Including: Expected to be recovered within 1 year (inclusive) (12535987) (10368799) Expected to be recovered after 1 year (602800848) (660196455) (615336835)(670565254) 204GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (16) Deferred tax assets and deferred tax liabilities (Cont’d) (c) Deductible temporary differences and deductible losses that are not recognised as deferred tax assets are analysed as follows: 31 December 2022 31 December 2021 (Restated) Deductible temporary differences 1987366998 1831235286 Deductible losses 11033478760 5808689992 130208457587639925278 (d) Deductible tax losses that are not recognised as deferred tax assets will expire in following years: 31 December 2022 31 December 2021 2022-679470193 20231171683402810630290 2024173024661173024661 2025760600486598674880 202639920214303546889968 20274936148781- 110334787605808689992 Management believed that as at the maturity date for the above deductible losses the relevant subject of tax payment has no sufficient taxable profits to deduct the above deductible losses; therefore no related deferred tax asset was recognised.(e) The net balances of deferred tax assets and deferred tax liabilities after offsetting are as follows: 31 December 2022 31 December 2021 (Restated) Offsetting Balance after Offsetting Balance after amount offsetting amount offsetting Deferred tax assets (31220570) 1359025081 (34810493) 1176841986 Deferred tax liabilities 31220570 (584116265) 34810493 (635754761) 205GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (17) Other non-current assets 31 December 2022 31 December 2021 Advances for engineering and equipment 4483822263 2294733606 Input VAT to be deducted 1813240967 2207784437 Prepayment for land use rights 198089693 166211424 Deposits prepaid for equity acquisition (a) 93426000 80000000 Prepayments for purchase of buildings 11623305 58318764 Others 6316324 3203403 66065185524810251634 (a) In August 2022 Guangdong Wind Power and Shanxi Hengyang New Energy Co. Ltd.("Hengyang New Energy") signed the Framework Agreement for Acquiring Equity of Wuxiang Lvheng 100MW Photovoltaic Power Generation Project and Guangdong Wind Power paid a deposit of RMB 52200000 as agreed in the agreement.In September 2022 Guangdong Wind Power and Shandong Fengxu New Energy Co. Ltd.("Shandong Fengxu") signed the Framework Agreement for Acquiring 100% Equity of Gaotang Fengxu New Energy Co. Ltd. and Guangdong Wind Power paid a deposit of RMB 41226000 as agreed in the agreement. 206GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (18) Provision for asset impairment and losses Increase in the Reversal in the Write-off/Charge-off 31 December 2021 current year current year in the current year 31 December 2022 Provision for bad debts of accounts receivables (263506) (546710) 243357 - (566859) Including: Provision for bad debts on a collective basis (263506) (546710) 243357 - (566859) Provision for bad debts of other receivables (37747977) (6252264) 8118747 577662 (35303832) Sub-total (38011483) (6798974) 8362104 577662 (35870691) Provision for impairment of advances to suppliers (115000) - - - (115000) Provision for decline in the value of inventories (34044608) - - - (34044608) Provision for impairment of contract assets (21889) - 9360 - (12529) Provision for impairment of long-term equity investments (117147134) - - - (117147134) Provision for impairment of fixed assets (1169899891) (155592876) - 193491165 (1132001602) Provision for impairment of construction in progress (281390672) (454257) - - (281844929) Provision for impairment of right-of-use assets - (2899510) - - (2899510) Provision for impairment of intangible assets (56502373) - - - (56502373) Provision for impairment of goodwill (25036894) (11885484) - - (36922378) Sub-total (1684158461) (170832127) 9360 193491165 (1661490063) (1722169944)(177631101)8371464194068827(1697360754) 207GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (19) Short-term borrowings 31 December 2022 31 December 2021 Credit loan 16201278600 12062948533 Guaranteed loan 60166260 297347896 1626144486012360296429 (a) As at 31 December 2022 the annual interest rates of the short-term borrowings ranged from 2.00% to 3.85% (31 December 2021: 2.77% to 3.85%). (b) As at 31 December 2022 the principal of short-term credit loan provided by related party Energy Group Finance Company amounted to RMB 5723903012 (31 December 2021: RMB 4977136729) (Note 8(6)). Interest payable of short-term borrowings to Energy Group Finance Company amounted to RMB 5323466 (31 December 2021: RMB 3142408).(c) As at 31 December 2022 short-term borrowings of RMB 60000000 (31 December 2021: RMB 297000000) were guaranteed by Xinjiang Jintai Electric Power Co. Ltd. a minority shareholder of the subsidiary Tumxuk Thermal Power. (20) Notes payables 31 December 2022 31 December 2021 Bank acceptance notes 1019206000 1728780000 Trade acceptance notes 476572076 180000000 14957780761908780000 208GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (21) Accounts payables 31 December 2022 31 December 2021 Fuel payable 5182454648 5731957639 Materials and spare parts payable 417506141 501756882 Repair expenses payable 98126083 99748099 Desulfurisation and denitrification expenses payable 67846620 50427110 Contracted operation expenses payable 62414344 166296490 Management fees payable for frequency modulation and energy storage 25898303 319986 Others 84007874 76060858 59382540136626567064 (a) As at 31 December 2022 accounts payables with ageing over one year amounted RMB 56448384 (31 December 2021: RMB 51399876) mainly including unsettled fuel payable and materials payable. (22) Employee benefits payable 31 December 2022 31 December 2021 Short-term employee benefits payable (a) 368880069 348069102 Defined contribution plans payable (b) 3128825 3092268 Early retirement benefits payable (c) 67170982 62450865 Defined benefit plans payable (c) 8241541 8400995 447421417422013230 209GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (22) Employee benefits payable (Cont’d) (a) Short-term employee benefits 31 December Increase in the Decrease in the 31 December 2021 current year current year 2022 Wages and salaries bonus allowances and subsidies 11143810 1715775659 (1723132997) 3786472 Staff welfare 5035644 180750141 (181390687) 4395098 Social security contributions 184406723 163862622 (142101008) 206168337 Including: Medical insurance 184406603 157254700 (135541925) 206119378 Work injury insurance 120 4243006 (4242888) 238 Maternity insurance - 2364916 (2316195) 48721 Housing funds 4800 179950828 (179929654) 25974 Labour union funds and employee education funds 140396647 66507488 (61901191) 145002944 Other short-term employee benefits 7081478 100314325 (97894559) 9501244 3480691022407161063(2386350096)368880069 (b) Defined contribution plans 31 December Increase in the Decrease in the 31 December 2021 current year current year 2022 Basic pensions 4800 214025762 (213975805) 54757 Unemployment insurance 150 5245900 (5239042) 7008 Enterprise annuity contribution 3087318 124098888 (124119146) 3067060 3092268343370550(343333993)3128825 (c) The remuneration for early retirement and the Group’s special retirement pensions that are expected to be paid within one year from the date of the balance sheet are listed as the early retirement benefits payable and the defined benefit plan payable respectively. Please refer to Note 4(32)(a) and (b) for details. 210GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (23) Taxes payable 31 December 2022 31 December 2021 Enterprise income tax payable 142673955 91420743 Land VAT payable 80216700 80216700 Unpaid VAT 33926459 145874436 Individual income tax payable 28187414 29777458 City maintenance and construction tax payable 1306426 16340357 Educational surcharge payable 1088906 12684138 Property tax payable 924458 77307640 Land use tax payable 217542 21588871 Others 13943055 27092732 302484915502303075 (24) Other payables 31 December 2022 31 December 2021 Construction and equipment expenses payable 8097497010 7210562333 Carbon emission allowances payable 382721278 103819285 Generator unit capacity payable (b) 249056604 219849057 Project warranty payable 236415770 228942252 Advances payable to third parties 98388118 - Payables for equity acquisition (c) 68180122 2501436910 Dividends payable (d) 18553521 - Administrative fines payable 11531700 11531700 Others 241313908 293622241 940365803110569763778 (a) As at 31 December 2022 other payables of RMB 2403143193 (31 December 2021: RMB 2564331490) aged over one year mainly represented construction and equipment expenses payable and warranty payable not being settled because the comprehensive acceptance and settlement of relevant projects were yet to be completed or projects were still within their warranty periods. 211GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (24) Other payables (Cont’d) (b) As at 31 December 2022 1# and 2# generator units of Bohe Energy had been completed and were temporarily transferred to fixed assets. Generator unit capacity payable by Bohe Energy was estimated to be RMB 249056604 based on the capacity index of thermal power generator units.(c) In 2022 the Company acquired 100% equity of Gaotang Shihui New Energy Co. Ltd. ("Gaotang New Energy") 80% equity of Dacheng County Dun'An New Energy Co. Ltd. ("Dun'An New Energy") and 100% equity of Jiuzhou New Energy (Zhaoqing) Co. Ltd. ("Jiuzhou New Energy") with the transaction price of RMB 178000000 in total (see Note 5(1) for details). As at 31 December 2022 there were still payables for equity acquisition amounting to RMB 68180122 that had not yet been paid. According to the equity acquisition agreement the remaining equity acquisition payment will be made within one year.(d) In 2022 Guangdong Yudean Zhuhai Offshore Wind Power Co. Ltd. (“Zhuhai Wind Power”) a subsidiary of the Group declared to distribute a dividend of RMB 18553521 to the minority shareholder Zhuhai Special Economic Zone Power Development Group Co. Ltd. at a resolution of the shareholders' meeting. As at 31 December 2022 the dividend was still not paid. (25) Current portion of non-current liabilities 31 December 2022 31 December 2021 Current portion of long-term borrowings (Note 4(27))26855408722705229515 Current portion of long-term payables (Note 4(30)) 18508453 - Current portion of debentures payable 334056607 121526171 Current portion of lease liabilities (Note 4(29)) 937144038 870864067 39752499703697619753 212GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (26) Other current liabilities 31 December 2022 31 December 2021 Short-term debentures payable 3503496438 1007871233 Output VAT to be written off 671353936 650577773 41748503741658449006 Related information of short-term debentures payable is as follows: Amortisation Issuance Maturity Issuance 31 December Issued in the Interest at of discounts Repayments for 31 December Face value date period amount 2021 current year face value or premium the year 2022 Second batch of super short-term financing notes issued by Guangdong Electric Power Development Co. Ltd. 2021 1000000000 23/8/2021 178 days 1000000000 1007871233 - 2906301 - (1010777534) - First batch of super short-term financing notes issued by Guangdong Electric Power Development Co. Ltd. 2022 1000000000 14/2/2022 178 days 1000000000 - 1200000000 11762630 - (1211762630) - Second batch of super short-term financing notes issued by Guangdong Electric Power Development Co. Ltd. 2022 1000000000 16/6/2022 178 days 1000000000 - 1500000000 14630137 - (1514630137) - Third batch of super short-term financing notes issued by Guangdong Electric Power Development Co. Ltd. 2022 2000000000 9/12/2022 177 days 2000000000 - 2000000000 2564383 - - 2002564383 Fourth batch of super short-term financing notes issued by Guangdong Electric Power Development Co. Ltd. 2022 1500000000 22/12/2022 90 days 1500000000 - 1500000000 932055 - - 1500932055 650000000065000000001007871233620000000032795506-(3737170301)3503496438 In 2022 the interest rate of super short-term financing notes issued by the Company was from 2.00% to 2.52% (2021: 1.80% to 2.21%). 213GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (27) Long-term borrowings 31 December 2022 31 December 2021 Credit loan 36895757247 23906374506 Pledged loan (a) 6067812048 6007416837 Guaranteed loan (b) 2582904205 1732016028 4554647350031645807371 Less: Current portion of long-term borrowings (Note 4(25)) Credit loan (2004935172) (2181560334) Pledged loan (528303490) (391353153) Guaranteed loan (152302210) (132316028) 4286093262828940577856 (a) Pledged loan As at 31 December 2022 the charge right for electricity was treated as pledge for long-term pledged loan for some subsidiaries.(b) Guaranteed loan As at 31 December 2022 the principal balance of the Group’s subsidiary Xuwen Wind Power’s long-term borrowings from Energy Group Finance Company was RMB 6400000 including current portion of long-term borrowings amounting to RMB 1400000 which was secured by Zhanjiang Wind Power (2021: RMB 7100000 including current portion of long-term borrowings amounting to RMB 1400000). The annual interest rate of the loan is 4.06% (2021: 4.26%) and the remaining principal will mature in installments by 28 November 2031.As at 31 December 2022 the principal balance of the Group’s subsidiary Qujie Wind Power’s long-term borrowings from China Clean Development Mechanism Fund was RMB 69000000 (2021: 69000000) which was guaranteed by Energy Group Finance Company. The annual interest rate of the loan is 3.26% (2021: 3.26%) and these borrowings will mature in installments by 7 May 2025. 214GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (27) Long-term borrowings (Cont’d) (b) Guaranteed loan (Cont'd) As at 31 December 2022 the principal balance of the Group’s subsidiary Dun'An New Energy’s long-term borrowings from Industrial Bank Co. Ltd. Hohhot Branch was RMB 529386987 including current portion of long-term borrowings amounting to RMB 13234675 which was secured by Beijing Guangdun New Energy Co. Ltd. (2021: Nil). The annual interest rate of the loan is 4.40% (2021: Nil) and the remaining principal will mature in installments by 11 December 2037. As at 31 December 2022 the principal balance of the Group’s subsidiary Guangdong Yudean Xinhui Power Generation Co. Ltd. (“Xinhui Power”)’s long-term borrowings from China Clean Development Mechanism Fund was RMB 69000000 (2021: 69000000) which was guaranteed by Energy Group Finance Company. The annual interest rate of the loan is 3.21% (2021: 3.26%) and these borrowings will mature in installments by 27 July 2025.As at 31 December 2022 the principal balance of the Group's subsidiary Tumxuk Thermal Power’s long-term borrowings from Shanghai Pudong Development Bank China Guangfa Bank and Urumqi was RMB 1375000000 including current portion of long-term borrowings amounting to RMB 130000000 (2021: RMB 1500000000 including current portion of long-term borrowings amounting to RMB 125000000) which was guaranteed by the Third Division of Xinjiang Production and Construction Corps. The annual interest rate of the loan is 4.90% (2021: 4.90%) and the remaining principal will mature in installments by 27 June 2032. As at 31 December 2022 the principal balance of the Group's subsidiary Tumxuk Thermal Power’s long-term borrowings from Bank of China was RMB 32649966 including current portion of long-term borrowings amounting to RMB 6200000 (2021: Nil) which was guaranteed by Xinjiang Jintai Electric Power Co. Ltd. The annual interest rate of the loan is 4.30% (2021: Nil) and the remaining principal will mature in installments by 15 December 2031.(c) As at 31 December 2022 the annual interest rates of long-term borrowings ranged from 0.75% to 4.90% (31 December 2021: 0.80% to 4.90%). 215GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (28) Debentures payable Transferred to Amortisation of current portion of 31 December Issued in the current discounts or non-current 31 December 2021 year premium liabilities 2022 21 Pinghai Bond 01 (a) 199921484 - 60679 (199982163) - 21 Pinghai Power MTN001 (b) 299212878 - 295424 - 299508302 20 Yudean Bond 01 (c) 1499648572 - 105660 - 1499754232 21 Yudean Bond 01 (d) 999924528 - 37736 - 999962264 21 Yudean Bond 02 (e) 1499855660 - 33962 - 1499889622 21 Yudean Bond 03 (f) 799635220 - 75472 - 799710692 21 Yudean Faneng MTN001 (g) 1198296858 - 1075472 - 1199372330 21 Yudean Faneng MTN002 (g) 2196588222 - 1183019 - 2197771241 22 Yudean Faneng MTN001(g) - 600000000 (1478774) - 598521226 86930834226000000001388650(199982163)9094489909 (a) As approved by CSRC Circular SFC License [2020] No. 1771 the Group’s subsidiary Pinghai Power issued 2-year book-entry corporate debentures in real-name system with face value of RMB 200000000 (“21 Pinghai Bond 01”) to the public on 4 June 2021. The Group altogether raised RMB 199880000 after deducting an issue expense of RMB 120000. The debenture is subject to an annual interest rate of 3.57% starting from 4 June 2021 and should be payable annually on simple interest. As at 31 December 2022 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 3.60% (31 December 2021: 3.60%). 216GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (28) Debentures payable (Cont’d) (b) On 15 October 2021 Pinghai Power issued 3-year middle-term notes with face value of RMB 300000000 in the interbank market (“21 Pinghai Power MTN001”). The Group altogether raised RMB 299100000 after deducting an issue expense of RMB 900000. The debenture is subject to an annual interest rate of 3.72% starting from 15 October 2021 and should be payable annually on simple interest. As at 31 December 2022 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 3.83% (31 December 2021: 3.83%). (c) As approved by CSRC Circular SFC License [2019] No. 2477 the Company issued 5-year book-entry corporate debentures in real-name system with face value of RMB 1500000000 (“20Yudean Bond 01”) to the public on 29 April 2020. The Company altogether raised RMB 1499471698 after deducting an issue expense of RMB 528302. The debenture is subject to an annual interest rate of 2.45% starting from 29 April 2020 and should be payable annually on simple interest. As at 31 December 2022 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 2.46% (31 December 2021: 2.46%). (d) As approved by CSRC Circular SFC License [2019] No. 2477 the Company issued 3-year book-entry corporate debentures in real-name system with face value of RMB 1000000000 (“21Yudean Bond 01”) to the public on 27 January 2021. The Company altogether raised RMB 999848386 after deducting an issue expense of RMB 151614. The debenture is subject to an annual interest rate of 3.57% starting from 27 January 2021 and should be payable annually on simple interest. As at 31 December 2022 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 3.58% (31 December 2021: 3.58%). (e) As approved by CSRC Circular SFC License [2019] No. 2477 the Company issued 5-year book-entry corporate debentures in real-name system with face value of RMB 1500000000 (“21Yudean Bond 02”) to the public on 28 April 2021. The Company altogether raised RMB 1499791783 after deducting an issue expense of RMB 208217. The debenture is subject to an annual interest rate of 3.50% starting from 28 April 2021 and should be payable annually on simple interest. As at 31 December 2022 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 3.50% (31 December 2021: 3.50%). (f) As approved by CSRC Circular SFC License [2021] No. 3142 the Company issued 5-year book-entry corporate debentures in real-name system with face value of RMB 800000000 (“21Yudean Bond 03”) to the public on 24 November 2021. The Company altogether raised RMB 799565033 after deducting an issue expense of RMB 434967. The debenture is subject to an annual interest rate of 3.41% starting from 24 November 2021 and should be payable annually on simple interest. As at 31 December 2022 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 3.42% (31 December 2021: 3.42%). 217GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (28) Debentures payable (Cont’d) (g) The Company’s application for registration of middle-term notes has been accepted by the National Association of Financial Market Institutional Investors at its 51st meeting in 2021. The registered amount of RMB 4000000000 would be valid for 2 years starting from 29 June 2021.On 19 July 2021 the Company issued 3-year middle-term notes with face value of RMB 1200000000 in the interbank market ("21 Yudean Faneng MTN001"). The Company altogether raised RMB 1197948000 after deducting an issue expense of RMB 2052000 which should be paid in three years. In 2022 the issue expense of RMB 684000 was paid. The debenture is subject to an annual interest rate of 3.17% starting from 21 July 2021 and should be payable annually on simple interest. As at 31 December 2022 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 3.23% (31 December 2021: 3.23%).On 15 November 2021 the Company issued 3-year middle-term notes with face value of RMB 2200000000 in the interbank market ("21 Yudean Faneng MTN002"). The Company altogether raised RMB 2196238000 after deducting an issue expense of RMB 3762000 which should be paid in three years. In 2022 the issue expense of RMB 1254000 was paid. The debenture is subject to an annual interest rate of 3.13% starting from 17 November 2021 and should be payable annually on simple interest. As at 31 December 2022 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 3.19% (31 December 2021: 3.19%). On 24 August 2022 the Company issued 5-year middle-term notes with face value of RMB 600000000 in the interbank market (“22 Yudean Faneng MTN001”). The Company altogether raised RMB 598290000 after deducting an issue expense of RMB 1710000 which should be paid in five years. In 2022 the issue expense of RMB 342000 was paid. The debenture is subject to an annual interest rate of 2.90% starting from 26 August 2022 and should be payable annually on simple interest. As at 31 December 2022 debentures payable were measured at amortised cost using effective interest method with the effective interest rate of 2.96%. 218GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (29) Lease liabilities 31 December 2022 31 December 2021 Lease liabilities 7807964055 5599031209 Less: Current portion of non-current liabilities (Note 4(25)) (937144038) (870864067) 68708200174728167142 (a) As at 31 December 2022 the future minimum lease payments of short-term leases and low value asset leases adopting the practical expedient according to the new lease standard were RMB 5449828 and RMB 387098 (31 December 2021: RMB 3339680 and RMB 102983) respectively which should be paid within one year. (30) Long-term payables 31 December 2022 31 December 2021 Sea area usage fee payable 389004362 - Equipment and construction expenses payable 270841119 96819223 Others 24960000 24960000 Less: Current portion of long-term payables (18508453) - 666297028121779223 (31) Deferred income 31 December Increase in the Decrease in the 31 December 2021 current year current year 2022 Government grants (a) 163611515 7156948 (28476248) 142292215 219GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (31) Deferred income (Cont’d) (a) Government grants Recognised in 31 December Increase in the other income in 31 December Asset related/ Government grants 2021 current year the current year 2022 Income related Special funds for 1-3# generators’ desulfurisation project 15107198 - (1303568) 13803630 Asset related Special financial funds for energy conservation 12407220 - (1383567) 11023653 Asset related Special treasury bond-based government grants for desulfurisation projects 12079169 - (1342130) 10737039 Asset related Compensation for relocation and renovation of Shajiao A Zhenkou pump house 11122717 - (5561358) 5561359 Asset related Tax refund for PRC-made equipment 8036728 - (2296208) 5740520 Asset related Environmental grants for SCR denitration project 7559528 - (1764615) 5794913 Asset related Provincial special funds for enterprises’ technology improvement 7707105 - (2997831) 4709274 Asset related Comprehensive technology upgrading for the energy saving of 1&2# generator units turbine by Zhongyue Energy 6923077 - (769230) 6153847 Asset related Second incentives for comprehensive and typical demonstration projects under financial policies of energy saving 6300000 - (450000) 5850000 Asset related Development and competitiveness funds from SASAC 6000000 - (666666) 5333334 Asset related Post rewarding subsidies for ultra-low emissions of 1&2# generators 5012766 - (633191) 4379575 Asset related Grants for energy saving and consumption reduction of 6# generator flow reconstruction 4698723 - (478188) 4220535 Asset related Grants for comprehensive technical transformation project for generator transformation and upgrading 4200416 - (526385) 3674031 Asset related Incentives for energy efficiency of power plant by Dongguan 3295375 - (1647687) 1647688 Asset related Special funds for technical transformation of ultra-low emissions of 5&6# generators - 5133400 (311115) 4822285 Asset related Others 53161493 2023548 (6344509) 48840532 Asset related 1636115157156948(28476248)142292215 220GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (32) Long-term employee benefits payable 31 December 2022 31 December 2021 Early retirement benefits payable (a) 366776366 343077437 Defined benefit plans payable (b) 91612969 100097967 Other long-term employee benefits payable (c) 61903987 55536676 Less: Payable within one year (91028053) (83231818) 429265269415480262 The employee benefits payable within one year are included in the employee benefits payable (Note 4(22)).(a) According to the Group’s regulations for early retirement of employees the employees whose early retirement requests are approved by the Group could have early retirement before statutory retirement age. Employees can obtain salary on a monthly basis by a certain ratio of the original salary until they reach the statutory retirement age. Management expects the termination benefits to be paid in the future are determined by the present value of cash flow when accrued the above termination benefits. As at 31 December 2022 the Group calculated the expected expense for each employee eligible for early retirement in each year before the statutory retirement age in accordance with the related regulations for early retirement taking into account local salary growth rate and estimated the present value of future termination benefits by treasury bond interest rate of 3.22% (2021: 3.57%) of the same period. As at 31 December 2022 the Group accrued termination benefits of RMB 366776366 (31 December 2021: RMB 343077437) and recognised them in long-term employee benefits payable. The actual termination benefits due within one year totalling RMB 67170982 (31 December 2021: RMB 62450865) were recognised in employee benefits payable.(b) In accordance with the FAQ on Social Management of Retired Employees in State-owned Enterprises (Guo Zi Ting Fa Gai Ge [2020] No. 36) issued by the State-owned Assets Supervision and Administration Commission of the State Council the Group made a one-time provision for the expected payments to retired employees eligible for the Group’s special retirement pensions in 2020 and made the payment on a monthly basis. The expected present values of cash flows of the Group’s special retirement pensions during the expected remaining life of the retired employees are recognised as long-term employee benefits payable and recorded in profit or loss for the current period. The Group’s special retirement pensions mainly include retirement subsidies military transfer subsidies and living allowances for retired primary and secondary school teachers. As at 31 December 2022 the Group calculated the expected special retirement pensions each year during retirees’ expected remaining life and estimated the present value of special retirement pensions in the future by treasury bond interest rate of 3.22% (2021: 3.57%) of the same period. As at 31 December 2022 the Group accrued defined benefit plans of RMB 91612969 and recognised them in long-term employee benefits payable (31 December 2021: RMB 100097967). The actual defined benefit plans due within one year totalling RMB 8241541 are recognised in employee benefits payable (31 December 2021: RMB 8400995). 221GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (32) Long-term employee benefits payable (Cont’d) (b) (Cont’d) As at 31 December 2022 and 31 December 2021 significant actuarial assumptions for the determination of the present value of the obligations of the defined benefit plan are as follows: 31 December 2022 31 December 2021 Discount rates 3.22% 3.57% Growth rates on military transfer subsidies 2% to 12% 2% to 12% Estimated average life 76 75 The sensitivity analysis below has been carried out based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period while all other assumptions are held constant: If the discount rate decreases by 0.5% the present value of the Group’s obligations of the defined benefit plan would decrease by RMB 5139168.The sensitivity analysis presented above may not reflect the actual changes in the obligations of the defined benefit plan because it is unlikely that changes in one assumption would occur in isolation of one another as some of the assumptions may be correlated. 222GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (32) Long-term employee benefits payable (Cont’d) (c) According to relevant regulations on social medical insurance in places where the subsidiaries of the Company and the Group locate if individual employees participating basic medical insurance for urban residents are under their statutory ages of retirement but their estimated contribution years fail to meet the local standards the Group needs to make continuous contribution for the employees per annum till the standards are met even after their retirement. The expected present values of cash flows that shall be paid for medical insurance for the remaining contribution years of retired employees are recognised as long-term employee benefits payable and recorded in profit or loss for the current period. As at 31 December 2022 the balance of the Group’s other long-term employee benefits payable was mainly the additional payment of medical insurance made for retired employees. The Group calculated the expected expenses for each year from the end of the current year to regulated contribution years based on the local monthly average salary of the year and estimated the present value of cash expenses made by retired employees for medical insurance in the future with a treasury bond interest rate of 3.22% (2021: 3.57%) as discount rate. As at 31 December 2022 the Group accrued other long-term employee benefits payable of RMB 61903987 (31 December 2021: RMB 55536676) with actual payment of other long-term employee benefits payable due within one year of RMB 15615530 (31 December 2021: RMB 12379958) recognised in employee benefits payable. (d) Long-term employee benefits payable included in profit or loss for the current period in 2022 and 2021 are as follows: 20222021 General and administrative expenses 121071303 188816127 (33) Other non-current liabilities 31 December 2022 31 December 2021 Capital injection (a) 128400000 74499700 Housing working fund 1028167 970029 12942816775469729 (a) In 2018 the Group’s subsidiary Qujie Wind Power received a capital injection of RMB 50000000 from GEGC. The capital will be used for Qujie Wailuo offshore wind power plant project. As at 31 December 2022 as Qujie Wind Power’s registration for changes of business license had not been completed the capital increase was recognised in other non-current liabilities.In 2022 the Group’s subsidiary Yuehua Power received a capital injection of RMB 78400000 from China Huaneng Group Co. Ltd. The capital will be used for construction of substitution of natural gas for coal power project. The second project capital will be injected in the first quarter of 2023. As at 31 December 2022 as Yuehua Power’s registration for changes of business license had not been completed the capital increase was recognised in other non-current liabilities. 223GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (34) Share capital Movements in the current year Housing fund transferred 31 December 2021 Issuance of new shares Bonus shares to shares Others Sub-total 31 December 2022 Shares subject to trading restriction - Shares held by domestic state- owned legal person 1893342621 - - - - - 1893342621 - Other domestic shares Including: Shares held by domestic non-state- owned legal person 4620666 - - - - - 4620666 Shares held by domestic natural person 5659 - - - - - 5659 Shares not subject to trading restriction - RMB-denominated ordinary shares 2553907040 - - - - - 2553907040 - Domestically-listed foreign shares 798408000 - - - - - 798408000 5250283986-----5250283986 Movements in the current year Housing fund transferred 31 December 2020 Issuance of new shares Bonus shares to shares Others Sub-total 31 December 2021 Shares subject to trading restriction - Shares held by domestic state- owned legal person 1893342621 - - - - - 1893342621 - Other domestic shares Including: Shares held by domestic non-state- owned legal person 4620666 - - - - - 4620666 Shares held by domestic natural person 5659 - - - - - 5659 Shares not subject to trading restriction - RMB-denominated ordinary shares 2553907040 - - - - - 2553907040 - Domestically-listed foreign shares 798408000 - - - - - 798408000 5250283986-----5250283986 224GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (35) Capital surplus Increase in Decrease in 31 December the current the current 31 December 2021 year year 2022 (Restated) Capital premium (a) 3991835030 - (19288105) 3972546925 Revaluation reserve 119593718 - - 119593718 Investment from GEGC 395000000 - - 395000000 Share of interests in the investee in proportion to the shareholding (b) (174299153) 636197 - (173662956) Transfer of capital surplus recognised under the previous accounting system 20474592 - - 20474592 Others (75652004) - (1253770) (76905774) 4276952183636197(20541875)4257046505 Increase in 31 December the current Decrease in the 31 December 2020 year current year 2021 (Restated) (Restated) Capital premium 7734477748 958923 (3743601641) 3991835030 Revaluation reserve 119593718 - - 119593718 Investment from GEGC 395000000 - - 395000000 Share of interests in the investee in proportion to the shareholding (b) (179682776) 5383623 - (174299153) Transfer of capital surplus recognised under the previous accounting system 20474592 - - 20474592 Others (75652004) - - (75652004) 80142112786342546(3743601641)4276952183 (a) In 2022 the capital surplus of the Group decreased by RMB 19288105 due to the dilution of the proportion of equity held by the Group arising from capital increase by minority shareholders of certain subsidiaries of the Group.(b) In 2022 capital surplus of associates calculated based on proportion of equity acquired increased by RMB 636197 (Note 4(7)(b)). 225GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (36) Other comprehensive income Other comprehensive income in the income statement for the year ended 31 Other comprehensive income in the balance sheet December 2022 Transfer of other comprehensive Attributable to the 31 December Attributable to the parent income to retained 31 December Amount incurred Less: Income parent company Attributable to minority 2021 company after tax earnings 2022 before tax tax expenses after tax shareholders after tax Other comprehensive income that will not be reclassified to profit or loss Share of other comprehensive income of the investee accounted for using equity method that will not be reclassified to profit or loss 69199467 9938693 - 79138160 9938693 - 9938693 1253770 Changes in fair value of investments in other equity instruments 1718622133 (131968221) - 1586653912 (175957628) 43989407 (131968221) - Changes arising from remeasurement of defined benefit plans (37296993) - - (37296993) - - - - Other comprehensive income that will be reclassified to profit or loss Share of other comprehensive income of the investee accounted for using equity method that will be reclassified to profit or loss (513036) 1855914 - 1342878 1855914 - 1855914 - 1750011571(120173614)-1629837957(164163021)43989407(120173614)1253770 Other comprehensive income in the income statement for the year ended 31 Other comprehensive income in the balance sheet December 2021 Transfer of other comprehensive Attributable to the 31 December Attributable to the parent income to retained 31 December Amount incurred Less: Income parent company Attributable to minority 2020 company after tax earnings 2021 before tax tax expenses after tax shareholders after tax Other comprehensive income that will not be reclassified to profit or loss Share of other comprehensive income of the investee accounted for using equity method that will not be reclassified to profit or loss 53589732 15609735 - 69199467 15609735 - 15609735 - Changes in fair value of investments in other equity instruments 1903766633 (184768848) (375652) 1718622133 (246358463) 61589615 (184768848) - Changes arising from remeasurement of defined benefit plans - (37296993) - (37296993) (53499650) - (37296993) (16202657) Other comprehensive income that will be reclassified to profit or loss Share of other comprehensive income of the investee accounted for using equity method that will be reclassified to profit or loss (180884) (332152) - (513036) (332152) - (332152) - 1957175481(206788258)(375652)1750011571(284580530)61589615(206788258)(16202657) 226GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (37) Surplus reserve 31 December Increase in the Decrease in the 31 December 2021 current year current year 2022 Statutory surplus reserve 3016893870 - - 3016893870 Discretionary surplus reserve 5886621265 - - 5886621265 8903515135--8903515135 31 December Increase in the Decrease in the 31 December 2020 current year current year 2021 Statutory surplus reserve 2905992585 110901285 - 3016893870 Discretionary surplus reserve 5609368053 277253212 - 5886621265 8515360638388154497-8903515135 In accordance with the Company Law of the People's Republic of China and the Company’s Articles of Association the Company should appropriate 10% of net profit for the year to the statutory surplus reserve and the Company can cease appropriation when the statutory surplus reserve accumulates to more than 50% of the registered capital. The Company appropriates for the discretionary surplus reserve after the shareholders’ meeting approves the proposal from the Board of Directors. The surplus reserve can be used to make up for the loss or increase the share capital after approval from the appropriate authorities. As at 31 December 2022 the accumulated statutory surplus reserve of the Company exceeded 50% of the registered capital.According to the resolution at the shareholders’ meeting dated 20 May 2022 no appropriation of statutory surplus reserve and discretionary surplus reserve is appropriated (2021: the Company appropriated 10% of net profit for 2020 amounting to RMB 110901285 to the statutory surplus reserve and 25% of net profit for 2020 amounting to RMB 277253212 to the discretionary surplus reserve). (38) Undistributed profits 20222021 (Restated) Undistributed profits at the beginning of the year 3205422561 8083048238 Add: Net profit attributable to equity owners of the Company (3003916572) (2928171731) Less: Appropriation to statutory surplus reserve (Note 4(37)) - (110901285) Appropriation to discretionary surplus reserve (Note 4(37)) - (277253212) Dividends payable on ordinary shares (b) - (630034078) Allocated to GEGC (c) - (930283398) Others (837472) (981973) Undistributed profits at the end of the year 200668517 3205422561 227GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (38) Undistributed profits (Cont’d) (a) As disclosed in Note 2(30) the amount of undistributed profits as at 31 December 2021 has been restated as a result of application of the Interpretation No. 15 related to fixed assets – accounting treatment of sale proceeds before intended use.(b) In accordance with the resolution at the shareholders’ meeting dated 20 May 2022 the Company did not distribute cash dividend to the shareholders.(c) As the business combination under common control was completed in 2021 the dividends allocated by the purchased subsidiary to GEGC in 2021 were deemed to have been distributed by the Company to GEGC while preparing the consolidated financial statements. (39) Revenue and cost of sale 20222021 (Restated) Revenue from main operations 52220743337 43864972613 Revenue from other operations 440345099 592893929 5266108843644457866542 20222021 (Restated) Cost of sale from main operations 52819129582 46798109870 Cost of sale from other operations 33180599 29395603 5285231018146827505473 228GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (39) Revenue and cost of sale (Cont’d) (a) Revenue and cost of sale from main operations 2022 2021 (Restated) Cost of sale Cost of sale Revenue from from main Revenue from from main main operations operations main operations operations Revenue from sale of electricity 51889521596 52503713101 43568666575 46554479693 Revenue from steam 202658611 202979909 167971843 137147673 Rendering of services 128563130 112436572 128334195 106482504 52220743337528191295824386497261346798109870 (b) Revenue and cost of sale from other operations 2022 2021 (Restated) Cost of sale Cost of sale Revenue from from other Revenue from from other other operations operations other operations operations Revenue from integrated utilisation of coal ash 365533200 4741667 495095811 7603191 Rental income 42581955 14431892 48557619 14560409 Others 32229944 14007040 49240499 7232003 4403450993318059959289392929395603 229GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (39) Revenue and cost of sale (Cont’d) (c) The Group's revenue is broken down as follows: 2022 Sale of electricity steam and coal ash Services Rent Others Total Revenue from main operations Including: Recognised at a point in time 52092180207 3389244 - - 52095569451 Recognised over a period of time - 125173886 - - 125173886 Revenue from other operations Including: Recognised at a point in time 365533200 - - 31527646 397060846 Recognised over a period of time - - - 702298 702298 Rental income - - 42581955 - 42581955 52457713407128563130425819553222994452661088436 2021 (Restated) Sale of electricity steam and coal ash Services Rent Others Total Revenue from main operations Including: Recognised at a point in time 43736638418 3099971 - - 43739738389 Recognised over a period of time - 125234224 - - 125234224 Revenue from other operations Including: Recognised at a point in time 495095811 - - 46929178 542024989 Recognised over a period of time - - - 2311321 2311321 Rental income - - 48557619 - 48557619 44231734229128334195485576194924049944457866542 As at 31 December 2022 the amount of revenue corresponding to the performance obligation of the Group that has been contracted but not yet performed or not fulfilled was RMB 114186101 of which RMB 23537608 was expected to be recognised in 2023.(d) In 2022 the Group's revenue and cost of sale incurred from selling products produced while preparing the production line for its intended use were RMB 458713027 and RMB 135577216 (2021: RMB 290642655 and RMB 12704791) respectively. 230GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (40) Taxes and surcharges 2022 2021 Tax base Property tax 109180727 96327360 Note 3 Stamp tax 37493970 36790843 Land use tax 30161901 26564472 City maintenance and construction tax 26958505 62927128 Note 3 Environmental protection tax 20789155 21251165 Note 3 Educational surcharge 20352881 49811245 Note 3 Others 325138 307863 245262277293980076 (41) Selling expenses 20222021 Employee benefits 44598614 41365789 Labour insurance 10044506 8106497 Entertainment expenses 3591287 2921288 Depreciation expenses 3268794 3484959 Travelling expenses 1315065 1431025 Others 6290337 8097482 6910860365407040 231GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (42) General and administrative expenses 20222021 Employee benefits 589588003 576664439 Labour insurance 123747304 93526218 Depreciation expenses 84730831 75702685 Amortisation of intangible assets 71440393 71354033 Fire safety expenses 47415882 43910145 Property management expenses 46166694 38807702 Agency fee 45804592 41705254 Office expenses 34911351 30729609 Rental expenses 16814722 9419598 Afforestation fee 11755686 11640359 Labour costs 11402499 10690272 Traffic expenses 11050160 9687185 Maintenance cost 9723877 7593392 Travelling expenses 8796255 7928361 Entertainment expenses 8373023 5888643 Insurance expenses 5254017 5281139 Others 65531642 60594253 11925069311101123287 (43) Research and development expenses 20222021 Material expenses 824545759 332438285 Employee benefits 210632851 176230301 Depreciation and amortisation expenses 147665819 37360302 Outsourced research and development expenses 41811591 26650129 Others 4655552 12035962 1229311572584714979 232GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (44) Financial expenses 20222021 Interest costs 2283281355 1652673654 Add: Interest costs on lease liabilities 306781528 182484109 Less: Amounts capitalised on qualifying assets (332357040) (335159980) Subtotal of interest expenses 2257705843 1499997783 Amortisation of discounts or premium of debentures payable 3001857 2202952 Less: Interest income (132632800) (133800923) Exchange gains - net (971955) (1001673) Bank charges and others 8797067 3967806 21359000121371365945 233GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (45) Expenses by nature The cost of sale selling expenses general and administrative expenses and research and development expenses in the income statement are listed as follows by nature: 20222021 (Restated) Consumed fuel low value consumables etc. 44076541204 39046440428 Depreciation and amortisation expenses 4741747341 4120630665 Employee benefits 2764337661 2721685066 Maintenance repair and operation expenses 1819598659 1252369160 Depreciation of right-of-use assets 315743960 179638516 Transaction costs 315386943 165684575 Insurance expenses 208434264 147982370 Management fees for frequency modulation and energy storage 94379327 82235157 Utility fees 85575194 88367556 Outsourcing fees for maintenance projects 74999608 51215122 Fire safety expenses 58324674 55247715 Property management expenses 53252538 38807702 Channel dredging and sanitary charges 50670983 44062837 Office expenses 41905156 35559262 Traffic expenses 37545497 33409825 Desulfurisation expenses 32305213 3127647 Leased labour expenses 28198187 23705386 Rental expenses 27805836 17146349 Tug service fees 25313710 35804563 Operation expenses of ultra-low emissions 19013423 761947 Other expenses 472157909 434868931 5534323728748578750779 (i) The Group directly recognises the daily maintenance and repair expenses of fixed assets that do not meet the criteria of capitalisation as the cost of sale and included the costs related to the research and development department the administrative department and the sale department in research and development expenses general and administrative expenses and selling expenses respectively.(ii) As disclosed in Note 2(25) the Group directly recognises the lease payments of short-term leases and low value leases in profit or loss for the current period. In 2022 the amount was RMB 27805836 (2021: RMB 17146349). 234GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (46) Asset impairment losses 20222021 Impairment of fixed assets 158542249 29321084 Impairment of goodwill 11885484 - Impairment of construction in progress 454257 - Other asset impairment losses 2890150 9377 17377214029330461 (47) (Reversal of)/Losses on credit impairment 20222021 (Reversal of)/Losses on bad debts of other receivables (Note 4(4)(b)) (1866483) 21796665 Losses on/(Reversal of) bad debts of accounts receivables (Note 4(2)(c)) 303353 (28808) (1563130)21767857 235GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (48) Other income Asset related/ 2022 2021 Income related Income from VAT refund upon collection 28893040 28991960 Income related Compensation for relocation and renovation of Shajiao A Zhenkou pump house 5561358 5561358 Asset related Subsidies for employment stabilisation provided by unemployment insurance 5136757 2058912 Income related Provincial special funds for enterprises’ technology improvement 2997831 2997831 Asset related Production incentives for production expansion of industrial enterprises 2680000 - Income related One-time subsidy for retained workers 2638271 - Income related Incentives for production stabilisation increase and expansion of industrial enterprises 2520000 - Income related Tax refund for PRC-made equipment 2296208 2296208 Asset related Environmental grants for SCR denitration project 1764615 1764615 Asset related Incentives for energy efficiency of power plant by Dongguan 1647687 1647687 Asset related Other government grants related to assets 14208549 13626883 Asset related Other government grants related to income 9815996 13708063 Income related 8016031272653517 (49) Investment income 20222021 (Restated) Investment income from long-term equity investments under equity method (Note 4(7)) 960006337 743767471 Dividend income earned during the holding period of investments in other equity instruments (Note 4(8)) 101262589 87731408 Others 607470 4446948 1061876396835945827 There was no significant restriction on remittance of investment income of the Group. (50) Gains on disposals of assets Amount recognised in non- recurring profit or loss in 202220212022 Gains on disposals of fixed assets 30527957 90856371 30527957 Gains on disposals of intangible assets - 84060264 - Others 274880 9672390 274880 3080283718458902530802837 236GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (51) Non-operating income Amount recognised in non-recurring profit 2022 2021 or loss in 2022 Gains on scrap of non-current assets 47885412 95182637 47885412 Waived payables 20398518 3896128 20398518 Claims and compensation income 20345920 6505940 20345920 Tax reduction and exemption for those having difficulty in paying taxes 6846367 - 6846367 Compensation for electricity charges during the demolition and construction period 6533120 18040851 6533120 Income from penalties and fines 4100221 8005031 4100221 Income from sales of waste products 3259709 785225 3259709 Others 16121020 6677063 16121020 125490287139092875125490287 (52) Non-operating expenses Amount recognised in non-recurring 2022 2021 profit or loss in 2022 Carbon emission allowances used to fulfil the emission reduction obligation (a) 306786693 135013051 - Losses on scrap of non-current assets 73508692 25804195 73508692 Penalties and overdue fines 59233310 5859197 59233310 Others 4373861 4782288 4373861 443902556171458731137115863 (a) In accordance with the Interim Provisions on the Accounting Treatment Regarding Carbon Emissions Right Trading and the Interim Measures for the Administration of Trading of Carbon Emission Rights (Cai Kuai [2019] No. 22) subsidiaries within the Group that were identified as key emission units recognised the expected performance obligations of carbon emission in 2022 as non-operating expenses on an accrual basis and included related provision for carbon emission allowances payable in other payables. 237GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (53) Income tax expenses/(credits) 20222021 (Restated) Current income tax calculated based on tax law and related regulations 323728437 144706928 Deferred income tax (189832184) (670149842) 133896253(525442914) The reconciliation from income tax calculated based on the applicable tax rates and total profit presented in the consolidated income statement to the income tax expenses is listed below: 20222021 (Restated) Total loss (4381092874) (4776506063) Income tax calculated at applicable tax rates (1095273219) (1194126516) Effect of preferential tax rates of subsidiaries (50514396) (81523102) Effect of change in the tax rates (155561) 4530204 Income not subject to tax (270470833) (210039107) Costs expenses and losses not deductible for tax purposes 92867591 53267075 Deductible losses for which no deferred tax asset was recognised 1233642457 892481832 Transfer-out of deductible losses for which deferred tax asset was recognised 241960423 12702380 Deductible temporary differences for which no deferred tax asset was recognised 65687623 34804647 Utilisation of previously unrecognised deductible losses (4499885) (9829508) Utilisation of previously unrecognised deductible temporary differences (57301647) (12792715) Others (22046300) (14918104) Income tax expenses/(credits) 133896253 (525442914) 238GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (54) Earnings per share (a) Basic earnings per share Basic earnings per share are calculated by dividing consolidated net profit attributable to ordinary shareholders of the parent company by the weighted average number of ordinary shares outstanding: 20222021 (Restated) Consolidated net loss attributable to ordinary shareholders of the parent company (3003916572) (2928171731) Weighted average number of outstanding ordinary shares of the Company 5250283986 5250283986 Basic earnings per share (0.57) (0.56) Including: - Basic earnings per share from continuing operations: (0.57) (0.56) - Basic earnings per share for discontinued operations: - - (b) Diluted earnings per share Diluted earnings per share are calculated by dividing consolidated net profit attributable to ordinary shareholders of the parent company adjusted based on the dilutive potential ordinary shares by the adjusted weighted average number of ordinary shares outstanding. In 2022 there were no dilutive potential ordinary shares (2021: Nil) and hence diluted earnings per share are equal to basic earnings per share. 239GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (55) Notes to the cash flow statement (a) Cash received relating to other operating activities 20222021 Interest income 131645194 139255889 Rental income 42581955 48557619 Government grants 29947972 23486977 Income from claims and fines 24446141 14510971 Others 34111315 46880126 262732577272691582 (b) Cash paid relating to other operating activities 20222021 Insurance expenses 220648827 153146648 Utility fees 85575194 92086938 Administrative penalties and overdue fines 59233310 5859197 Fire safety expenses 58324674 55247715 Property management expenses 53252538 43911232 Carbon emission allowances 50784414 70390672 Sewage and sanitary charges 50670983 44087589 Outsourced research and development expenses 46467143 38686091 Agency fee 45804592 41705254 Office expenses 41905156 35524383 Traffic expenses 37545497 34651955 Rental expenses 27805836 17146349 Travelling expenses 17958287 17201473 Others 220224296 261168637 1016200747910814133 240GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (55) Notes to the cash flow statement (Cont’d) (c) Cash received relating to other investing activities 20222021 (Restated) Recovery of advances for project payment 58920000 - Others 7872867 - 66792867- (d) Cash paid relating to other investing activities 20222021 Deposits prepaid for equity acquisition 93426000 - Advances for business units 122438319 188784979 Deposits for ecological protection - 30583 215864319188815562 (e) Cash paid relating to other financing activities 20222021 Consideration paid for business combinations involving enterprises under common control (i) 2501436910 1242164731 Repayments of lease liabilities and long-term payables 969796495 300181939 Agency fee for debenture issuance 2280001 150906 34735134061542497576 In 2022 total cash outflows for leases paid by the Group amounted to RMB 971977756 except for the repayments of lease liabilities classified as cash paid relating to financing activities the remaining was classified as cash paid relating to operating activities.(i) In 2022 the Group paid consideration of RMB 2501436910 for acquisition of the remaining equity arising from the prior year’s business combinations involving enterprises under common control. 241GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (56) Supplementary information to the cash flow statement (a) Supplementary information to the cash flow statement Reconciliation from net profit to cash flows from operating activities 20222021 (Restated) Net loss (4514989127) (4251063149) Add: Losses on provision for asset impairment 173772140 29330461 (Reversal of)/Provision for credit impairment loss (1563130) 21767857 Depreciation of right-of-use assets 315743960 179638516 Depreciation of fixed assets 4626792756 4034654237 Depreciation of investment properties 9286596 9980869 Amortisation of intangible assets 87590600 75995559 Amortisation of long-term prepaid expenses 18077389 4716826 Amortisation of deferred income (28476248) (27894582) Gains on disposals of fixed assets intangible assets and other long- term assets (30802837) (184589025) Losses/(Gains) on scrapping of non- current assets 25623280 (69378442) Financial expenses 2255611293 1501349968 Investment income (1061876396) (835945827) Increase in deferred income taxes (189832184) (670149843) Increase in inventories (377923028) (1283963976) Increase in operating receivables (1246175995) (1721046384) Increase in operating payables 1417526522 3318079673 Decrease/(Increase) in restricted cash 1479183 (9308070) Net cash flows from operating activities 1479864774 122174668 242GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (56) Supplementary information to the cash flow statement (Cont’d) (a) Supplementary information to the cash flow statement (Cont’d) Significant operating investing and financing activities that do not involve cash receipts and payments 20222021 Right-of-use assets and sea use rights increased in the current period 2523522827 2042941963 Long-term equity investments increased in the current period - 245776161 25235228272288718124 Net increase/(decrease) in cash and cash equivalents 20222021 Cash at the end of the year 11433808500 8023116939 Less: Cash at the beginning of the year (8023116939) (9405082609) Net increase/(decrease) in cash and cash equivalents 3410691561 (1381965670) (b) Cash and cash equivalents 31 December 2022 31 December 2021 Cash 11503523618 8105320953 Less: Restricted cash at bank (33318344) (42670394) Less: Interest receivable (36396774) (39533620) Cash and cash equivalents at the end of the year (i) 11433808500 8023116939 (i) Cash and cash equivalents at the end of the year 31 December 2022 31 December 2021 Cash on hand 46435 83108 Cash at bank that can be readily drawn on demand 11433762065 8023033831 114338085008023116939 243GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 4 Notes to the consolidated financial statements (Cont’d) (56) Supplementary information to the cash flow statement (Cont’d) (c) Acquisition of the subsidiaries (i) Acquisition of the subsidiaries 2022 Cash and cash equivalents paid in the current year for business combinations incurred in the current yearIncluding: Xiangtan XEMC Changshan Wind Power Co. Ltd. (“ChangshanWind Power”) 89524002 Jiuzhou New Energy 29819878 Others 956065 Less: Cash and cash equivalents held by subsidiaries at the acquisition date Including: Changshan Wind Power (22982426) Jiuzhou New Energy (976937) Others (2439134) Net cash paid to acquire the subsidiaries 93901448 (57) Monetary items denominated in foreign currency 31 December 2022 Balance in foreign currencies Exchange rate Balance in RMB Long-term borrowings - USD 6020090 6.9646 41927519 Current portion of non-current liabilities - USD 975681 6.9646 6795228 244GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 5 Changes of consolidation scope (1) Subsidiaries established during the year: Major business Place of Nature of Acquisition Subsidiaries location registration business Registered capital Shareholding (%) method Direct Indirect Zhanjiang Shangyang Energy Technology Co. Electricity Acquisition of Ltd. (“Shangyang Energy”) Zhanjiang Zhanjiang generation RMB 1000000 - 100.00% assets Zhanjiang Potou District Guidian Energy Technology Co. Ltd. Electricity Acquisition of (“Guidian Energy”) Zhanjiang Zhanjiang generation RMB 1000000 - 100.00% assets Xihua County Shunfeng New Energy Co. Ltd. Electricity Acquisition of (“Shunfeng New Energy”) Zhoukou Zhoukou generation RMB 22293880 - 100.00% assets Wuzhi Jindian New Energy Technology Co. Ltd. Electricity Acquisition of (“Jindian New Energy”) Jiaozuo Jiaozuo generation RMB 31350000 - 100.00% assets Lianjiang Yuefeng New Energy Co. Ltd. Electricity (“Lianjiang New Energy”) Zhanjiang Zhanjiang generation RMB 140070000 - 100.00% Investment Yunfu Luoding Yuefeng New Energy Co. Ltd. Electricity (“Luoding Yuefeng”) Luoding Luoding generation RMB 100000 - 100.00% Investment Linfen Zhaocheng Yuefeng New Energy Co. Ltd. Electricity (“Zhaocheng Yuefeng”) Linfen Linfen generation RMB 100000 - 100.00% Investment Meizhou Wuhua Yuefeng New Energy Co. Ltd. Electricity (“Wuhua New Energy”) Meizhou Meizhou generation RMB 1000000 - 100.00% Investment Laishui Yingyang New Energy Technology Co.Ltd. (“Yingyang New Electricity Acquisition ofEnergy”) Baoding Baoding generation RMB 77050000 - 100.00% assets Laishui Lineng New Energy Technology Co. Ltd. Electricity Acquisition of (“Lineng New Energy”) Baoding Baoding generation RMB 77050000 - 100.00% assets Huizhou Longmen Yuefeng New Energy Co. Ltd. Electricity (“Longmen New Energy”) Huizhou Huizhou generation RMB 100000 - 100.00% Investment Inner Mongolia Yuefeng New Energy Co. Ltd.(“Inner Mongolia New ElectricityEnergy”) Hohhot Hohhot generation RMB 314550000 - 100.00% Investment Zhuhai Yuefeng NewEnergy Co. Ltd. (“Zhuhai ElectricityNew Energy”) Zhuhai Zhuhai generation RMB 1000000 - 100.00% Investment Electricity Acquisition of Dun’An New Energy Langfang Langfang generation RMB 160000000 - 80.00% assets Electricity Acquisition of Gaotang New Energy Liaocheng Liaocheng generation RMB 36096000 - 100.00% assets Guangdong Shaoguan Guangdong Electric Power New Energy Co.Ltd. (“Shaoguan New ElectricityEnergy”) Shaoguan Shaoguan generation RMB 5000000 100.00% - Investment Tumxuk Yudean Hanhai New Energy Co. Ltd. Electricity (“Hanhai New Energy”) Tumxuk Tumxuk generation RMB 5000000 100.00% - Investment Yudean Jinxiu IntegratedEnergy Co. Ltd. (“Jinxiu ElectricityIntegrated Energy”) Laibin Laibin generation RMB 1000000 90.00% - Investment Nanjing Senhong New Energy Co. Ltd. Electricity Acquisition of (“Senhong New Energy”) Nanjing Nanjing generation RMB 10000000 100.00% - assets Jinchang Muhong New Energy Co. Ltd. Electricity Acquisition of (“Muhong New Energy”) Jinchang Jinchang generation RMB 1000000 - 100.00% assets 245GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 5 Changes of consolidation scope (1) Subsidiaries established during the year (Cont’d): Major business Place of Nature of Acquisition Subsidiaries location registration business Registered capital Shareholding (%) method Direct Indirect Nanjing Linyuan Senhai NewEnergy Co. Ltd. (“Senhai Electricity Acquisition ofNew Energy”) Nanjing Nanjing generation RMB 1000000 100.00% - assets Jinchang Jieyuan Mujin NewEnergy Co. Ltd. (“Mujin Electricity Acquisition ofNew Energy”) Jinchang Jinchang generation RMB 1000000 - 100.00% assets Guangdong Yudean Huibo New Energy Co. Ltd. Electricity (“Huibo New Energy”) Huizhou Huizhou generation RMB 5000000 100.00% - Investment Taishan Dongrun Zhongneng New Energy Co. Ltd.(“Dongrun Zhongneng New Electricity Acquisition ofEnergy”) Taishan Taishan generation RMB 1000000 100.00% - assets Taishan Dongrun Qingneng New Energy Co. Ltd.(“Dongrun Qingneng New Electricity Acquisition ofEnergy”) Taishan Taishan generation RMB 22304520 - 100.00% assets Taishan Runze Jieyuan NewEnergy Co. Ltd. (“Runze Electricity Acquisition ofJieyuan New Energy”) Taishan Taishan generation RMB 22758500 - 100.00% assets Guangdong Yudean Maoming Natural Gas Thermal Power Co. Ltd. Electricity (“Maoming Natural Gas”) Maoming Maoming generation RMB 135700000 85.00% - Investment Meizhou Xingyue NewEnergy Co. Ltd. (“Xingyue ElectricityNew Energy”) Meizhou Meizhou generation RMB 9977500 100.00% - Investment Guangdong Yudean Huixin Thermal Power Co. Ltd. Electricity (“Huixin Thermal Power”) Huizhou Huizhou generation RMB 13500000 85.00% - Investment Yudean Shache Integrated Kashi KashiEnergy Co. Ltd. (“Shache Prefecture Prefecture ElectricityIntegrated Energy”) Xinjiang Xinjiang generation RMB 1206110470 100.00% - Investment Laixi Xinguangyao New Energy Technology Co.Ltd. (“Xinguangyao New Electricity Acquisition ofEnergy”) Qingdao Qingdao generation RMB 1000000 99.00% - assets Laixi Telian New Energy Technology Co. Ltd. Electricity Acquisition of (“Telian New Energy”) Qingdao Qingdao generation RMB 1000000 - 99.00% assets Pingdu Lianyao New Energy Technology Co. Ltd. Electricity Acquisition of (“Lianyao New Energy”) Qingdao Qingdao generation RMB 1000000 - 99.00% assets Electricity Acquisition of Jiuzhou New Energy Zhaoqing Zhaoqing generation RMB 39000000 100.00% - assets Electricity Acquisition of Changshan Wind Power Xiangtan Xiangtan generation RMB 80000000 100.00% - assets Yunfu Luoding Yudean NewEnergy Co. Ltd. (“Luoding ElectricityNew Energy”) Luoding Luoding generation RMB 500000 100.00% - Investment The above companies that were acquired by acquisition of assets are subsidiaries acquired by the Company and its subsidiaries through acquisition of assets from related parties. As at the acquisition date the above companies had no other businesses or assets other than construction in progress fixed assets and right-of-use assets and the acquisition did not involve employees. The acquisition of assets did not constitute a business as there was not any output at the acquisition date. (2) For the information of the Company’s disposals of subsidiaries in the current year please refer to Note 6(1)(a). 246GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (1) Interests in subsidiaries (a) Constitution of the Group Major business Subsidiaries location Place of registration Nature of business Shareholding (%) Acquisition method Direct Indirect Maoming Thermal (i) Maoming Maoming Electricity generation 46.54% - Investment Jinghai Power Jieyang Jieyang Electricity generation 65.00% - Investment Zhanjiang Wind Power Zhanjiang Zhanjiang Electricity generation - 70.00% Investment Guangdong Yudean Technology Engineering Management Co. Ltd.(“Technology Engineering Company”) Dongguan Dongguan Electricity generation 100.00% - Investment Guangdong Yudean Humen Electric Co. Ltd. (“Humen Electric”) Dongguan Dongguan Electricity generation 60.00% - Investment Bohe Energy Maoming Maoming Electricity generation 67.00% - Investment Xuwen Wind Power Zhanjiang Zhanjiang Electricity generation - 70.00% Investment Guangdong Yudean Huadu Natural Gas Thermal Power Co. Ltd.(“Huadu Natural Gas”) Guangzhou Guangzhou Electricity generation 65.00% - InvestmentGuangdong Yuedean Dabu Power Generation Co. Ltd. (“DabuPower Generation”) Meizhou Meizhou Electricity generation 100.00% - InvestmentGuangdong Yudean Leizhou Wind Power Co. Ltd. (“Leizhou WindPower”) Leizhou Leizhou Electricity generation 94.00% Investment Dianbai Wind Power Maoming Maoming Electricity generation - 100.00% Investment Business combinations involving Zhanjiang Electric Zhanjiang Zhanjiang Electricity generation - 76.00% enterprises under common control Business combinations involving Guangdong Yuejia Electric Co. Ltd. (“Yuejia Electric”) Meizhou Meizhou Electricity generation 58.00% - enterprises under common control Business combinations involving Shaoguan Power Plant Shaoguan Shaoguan Electricity generation 90.00% - enterprises under common control Business combinations involving Zhongyue Energy Zhanjiang Zhanjiang Electricity generation 90.00% - enterprises under common control Power Sales Guangzhou Guangzhou Electricity generation 100.00% - Investment Qujie Wind Power Zhanjiang Zhanjiang Electricity generation - 100.00% Investment Yangjiang Wind Power Yangjiang Yangjiang Electricity generation - 91.41% Investment Lincang Yunnan Business combinations involving Lincang Energy Province Lincang Electricity generation 100.00% - enterprises not under common control Business combinations involving Shenzhen Guangqian Electric Co. Ltd. (“Guangqian Electric”) Shenzhen Shenzhen Electricity generation 100.00% - enterprises under common control Business combinations involving Huizhou Natural Gas Huizhou Huizhou Electricity generation 67.00% - enterprises under common control Business combinations involving Pinghai Power (ii) Huizhou Huizhou Electricity generation 45.00% - enterprises under common control 247GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (1) Interests in subsidiaries (Cont’d) (a) Constitution of the Group (Cont’d) Subsidiaries Major business location Place of registration Nature of business Shareholding (%) Acquisition method Direct Indirect Business combinations involving Shibeishan Wind Power Jieyang Jieyang Electricity generation - 70.00% enterprises under common control Business combinations involving Red Bay Power Shanwei Shanwei Electricity generation 65.00% - enterprises under common control Business combinations involving enterprises not under common Guangdong Wind Power Guangzhou Guangzhou Electricity generation 100.00% - controlTongdao Yuexin Wind Power Generation Co. Ltd. (“TongdaoCompany”) Huaihua Hunan Province Huaihua Electricity generation - 100.00% Investment Pingyuan Wind Power Meizhou Meizhou Electricity generation - 100.00% InvestmentGuangdong Yudean Heping Wind Power Co. Ltd. (“Heping WindPower”) Heyuan Heyuan Electricity generation - 100.00% Investment Business combinations involving enterprises not under common Huilai Wind Power Jieyang Jieyang Electricity generation - 89.83% control Guangdong Yuejiang Hongrui Power Technology Development Co.Ltd. (“Hongrui Technology”) Shaoguan Shaoguan Electricity generation - 90.00% Investment Guangdong Yudean Yongan Natural Gas Thermal Power Co. Ltd.(“Yongan Natural Gas”) Zhaoqing Zhaoqing Electricity generation 90.00% - Investment Xupu County Huaihua Hunan Xupu Yuefeng New Energy Co. Ltd. (“Xupu Yuefeng”) Huaihua Hunan Province Hunan Province Electricity generation - 100.00% InvestmentGuangxi Wuxuan Yuefeng New Energy Co. Ltd.(“Wuxuan Guangxi Zhuang Autonomous Wuxuan Guangxi ZhuangYuefeng”) Region Autonomous Region Electricity generation - 100.00% InvestmentHuizhou Pingdian Comprehensive Energy Co. Ltd. (“PingdianComprehensive”) Huizhou Huizhou Electricity generation - 45.00% Investment Zhuhai Wind Power Zhuhai Zhuhai Electricity generation - 74.48% InvestmentGuangdong Yudean Binhai Bay Energy Co. Ltd. (“Binhai BayCompany”) Dongguan Dongguan Electricity generation 100.00% - InvestmentGuangdong Yuedian Daya Bay Integrated Energy Co. Ltd. (“DayaBay Company”) Huizhou Huizhou Electricity generation 70.00% - Investment Guangdong Yuedian Qiming Energy Co. Ltd. (“Qiming Company”) Shenzhen Shenzhen Electricity generation 100.00% - Investment Business combinations involving Shenzhen Huaguoquan Electric Power Service Co. Ltd. enterprises not under common (“Huaguoquan Company”) Shenzhen Shenzhen Leases 100.00% - controlShaoguan Nanxiong Yuefeng New Energy Co. Ltd. (“NanxiongNew Energy”) Shaoguan Shaoguan Electricity generation - 100.00% Investment Guangdong Yudean Dananhai Smart Energy Co. Ltd. ("Dananhai Company") Jieyang Jieyang Electricity generation 100.00% - Investment Guangdong Yudean Baihua Integrated Energy Co. Ltd. ("Baihua Company") Huizhou Huizhou Electricity generation 100.00% - Investment 248GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Guangdong Energy Qingzhou Offshore Wind Power Co. Ltd.(“Qingzhou Offshore Wind Power”) Yangjiang Yangjiang Electricity generation - 100.00% InvestmentZhanjiang Wanhaowei New Energy Co. Ltd. (“Wanhaowei NewEnergy”) Zhanjiang Zhanjiang Electricity generation - 100.00% Investment 6 Interests in other entities (Cont’d) (1) Interests in subsidiaries (Cont’d) (a) Constitution of the Group (Cont’d) Subsidiaries Major business location Place of registration Nature of business Shareholding (%) Acquisition method Direct Indirect Zhanjiang Wanchuang Hengwei New Energy Co. Ltd.(“Wanchuang Hengwei New Energy”) Zhanjiang Zhanjiang Electricity generation - 100.00% InvestmentGuangdong Guangye Nanhua New Energy Co. Ltd. (“Nanhua Business combinations involving enterprisesNew Energy”) Zhanjiang Zhanjiang Electricity generation - 51.00% not under common controlGuangdong Yueneng Datang New Energy Co. Ltd. (“Datang Business combinations involving enterprisesNew Energy”) Guangzhou Guangzhou Electricity generation - 51.00% not under common control Business combinations involving enterprises Yueneng Wind Power Zhanjiang Zhanjiang Electricity generation - 51.00% not under common control Business combinations involving enterprises Tumxuk Thermal Power Tumxuk Tumxuk Electricity generation 79.48% - not under common control Guangdong Province Shajiao C Company Generation Business combinations involving enterprises Corporation (“Sha C Company”) Guangzhou Guangzhou Electricity generation 51.00% - under common control Business combinations involving enterprises Guangdong Guanghe Power Co. Ltd. (“Guanghe Power”) Guangzhou Guangzhou Electricity generation - 51.00% under common control Business combinations involving enterprises Biomass Power Generation Zhanjiang Zhanjiang Electricity generation - 51.00% under common control Business combinations involving enterprises Xinhui Power Jiangmen Jiangmen Electricity generation - 45.90% under common control Guangdong Yudean Huaqing Gas Joint Cycle Power Business combinations involving enterprises Generation Co. Ltd. (“Huaqing Power”) Jiangmen Jiangmen Electricity generation - 33.15% under common control Business combinations involving enterprises Yunhe Power Yunfu Yunfu Electricity generation 90.00% - under common control Business combinations involving enterprises Yunfu Yundian Energy Co. Ltd. (“Yundian Energy”) Yunfu Yunfu Electricity generation - 56.25% under common control Business combinations involving enterprises Yuehua Power Guangzhou Guangzhou Electricity generation 51.00% - under common control Guangdong Yudean Yuehua Integrated Energy Co. Ltd. Business combinations involving enterprises (“Yuehua Integrated Energy”) Guangzhou Guangzhou Electricity generation - 51.00% under common control Guangzhou Huangpu Guangdian Petroleum Store & Transport Co. Ltd. (“Guangdian Petroleum Store & Transport”) Storage and Business combinations involving enterprises (Deregistered) (iii) Guangzhou Guangzhou transportation - 51.00% under common controlGuangzhou Huangpu Power Engineering Co. Ltd. (“Huangpu Business combinations involving enterprisesPower Engineering”) Guangzhou Guangzhou Electricity generation - 51.00% under common controlGuangzhou Huangdian Training Centre Co. Ltd. (“Huangdian Business combinations involving enterprisesTraining Centre”) (Deregistered) (iv) Guangzhou Guangzhou Training - 51.00% under common control 249GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] Guangzhou Huangpu Suishen Power Technology Engineering Business combinations involving enterprises Co. Ltd. (“Suishen Power Engineering”) (Disposed of) (v) Guangzhou Guangzhou Electricity generation - 35.70% under common controlGuangdong Yuedian Bijie New Energy Co. Ltd. (“Bijie NewEnergy”) Bijie Bijie Electricity generation 100.00% - Investment Shangyang Energy Zhanjiang Zhanjiang Electricity generation - 100.00% Acquisition of assets 6 Interests in other entities (Cont’d) (1) Interests in subsidiaries (Cont’d) (a) Constitution of the Group (Cont’d) Subsidiaries Major business location Place of registration Nature of business Shareholding (%) Acquisition method Direct Indirect Guidian Energy Zhanjiang Zhanjiang Electricity generation - 100.00% Acquisition of assets Shunfeng New Energy Zhoukou Zhoukou Electricity generation - 100.00% Acquisition of assets Jindian New Energy Jiaozuo Jiaozuo Electricity generation - 100.00% Acquisition of assets Lianjiang New Energy Zhanjiang Zhanjiang Electricity generation - 100.00% Investment Luoding Yuefeng Luoding Luoding Electricity generation - 100.00% Investment Zhaocheng Yuefeng Linfen Linfen Electricity generation - 100.00% Investment Wuhua New Energy Meizhou Meizhou Electricity generation - 100.00% Investment Yingyang New Energy Baoding Baoding Electricity generation - 100.00% Acquisition of assets Lineng New Energy Baoding Baoding Electricity generation - 100.00% Acquisition of assets Longmen New Energy Huizhou Huizhou Electricity generation - 100.00% Investment Inner Mongolia New Energy Hohhot Hohhot Electricity generation - 100.00% Investment Zhuhai New Energy Zhuhai Zhuhai Electricity generation - 100.00% Investment Dun’An New Energy Langfang Langfang Electricity generation - 80.00% Acquisition of assets Gaotang New Energy Liaocheng Liaocheng Electricity generation - 100.00% Acquisition of assets Shaoguan New Energy Shaoguan Shaoguan Electricity generation 100.00% - Investment Hanhai New Energy Tumxuk Tumxuk Electricity generation 100.00% - Investment Jinxiu Integrated Energy Laibin Laibin Electricity generation 90.00% - Investment Senhong New Energy Nanjing Nanjing Electricity generation 100.00% - Acquisition of assets Muhong New Energy Jinchang Jinchang Electricity generation - 100.00% Acquisition of assets Senhai New Energy Nanjing Nanjing Electricity generation 100.00% - Acquisition of assets Mujin New Energy Jinchang Jinchang Electricity generation - 100.00% Acquisition of assets Huibo New Energy Huizhou Huizhou Electricity generation 100.00% - Investment 250GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (1) Interests in subsidiaries (Cont’d) (a) Constitution of the Group (Cont’d) Subsidiaries Major business location Place of registration Nature of business Shareholding (%) Acquisition method Direct Indirect Dongrun Zhongneng New Energy Taishan Taishan Electricity generation 100.00% - Acquisition of assets Dongrun Qingneng New Energy Taishan Taishan Electricity generation - 100.00% Acquisition of assets Runze Jieyuan New Energy Taishan Taishan Electricity generation - 100.00% Acquisition of assets Maoming Natural Gas Maoming Maoming Electricity generation 85.00% - Investment Xingyue New Energy Meizhou Meizhou Electricity generation 100.00% - Investment Huixin Thermal Power Huizhou Huizhou Electricity generation 85.00% - Investment Kashi Prefecture Kashi Prefecture Shache Integrated Energy Xinjiang Xinjiang Electricity generation 100.00% - Investment Xinguangyao New Energy Qingdao Qingdao Electricity generation 99.00% - Acquisition of assets Telian New Energy Qingdao Qingdao Electricity generation - 99.00% Acquisition of assets Lianyao New Energy Qingdao Qingdao Electricity generation - 99.00% Acquisition of assets Jiuzhou New Energy Zhaoqing Zhaoqing Electricity generation 100.00% - Acquisition of assets Changshan Wind Power Xiangtan Xiangtan Electricity generation 100.00% - Acquisition of assets Luoding New Energy Luoding Luoding Electricity generation 100.00% - Investment 251GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (1) Interests in subsidiaries (Cont’d) (a) Constitution of the Group (Cont’d) (i) On 30 November 2018 Maoming Thermal merged Guangdong Energy Maoming Thermal Power Station Co. Ltd. wholly-owned by GEGC. After the merger GEGC held 30.12% equity of Maoming Thermal. 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 Thermal. Therefore the Company owns control power over Maoming Thermal.(ii) Pinghai Power was acquired from GEGC by the Group in 2012 through offering non-public shares. According to the agreement between GEGC and Guangdong Huaxia Electric Power Development Co. Ltd. (“Huaxia Electric”) which holds 40% equity in Pinghai Power the delegated shareholder and director from Huaxia Electric maintain consensus with those of GEGC when exercising their voting rights during the shareholders’ meeting and Board of Directors’ meeting at Pinghai Power; besides after GEGC transfers its 45% equity in Pinghai Power to the Company the delegated shareholder and director from Huaxia Electric also reach consensus with those of the Company when exercising their voting rights during the shareholders’ meeting and Board of Directors’ meeting at Pinghai Power. Therefore the Company owns the control power over Pinghai Power.(iii) Guangdian Petroleum Store & Transport a subsidiary of the Company held a shareholders' meeting on 24 November 2021 and decided to complete the liquidation and cancellation of Guangdian Petroleum Store & Transport a wholly-owned subsidiary of Yuehua Power in 2022. The liquidation and cancellation of Guangdian Petroleum Store & Transport will correspondingly change the scope of the Company's consolidated financial statements.However it will not have a significant impact on the Company's existing business and operating results and will not harm the interests of the Company and its shareholders. As at 28 February 2022 the liquidation and cancellation of Guangdian Petroleum Store & Transport had been completed. 252GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (1) Interests in subsidiaries (Cont’d) (a) Constitution of the Group (Cont’d) (iv) Huangdian Training Centre a subsidiary of the Company held a shareholders’ meeting on 23 November 2021 and decided to complete the merger of Huangdian Training Centre by Yuehua Integrated Energy a subsidiary of the Group and to dissolve and cancel Huangdian Training Centre upon completion of the merger in 2022. As at 12 January 2022 the merger liquidation and cancellation of Huangdian Training Centre had been completed.(v) On 8 October 2021 Suishen Power Engineering a subsidiary of the Company and also a non-wholly-owned subsidiary of Yuehua Power was approved for disposals of its 70% of the equity to third parties. The disposals of Suishen Power Engineering will correspondingly change the scope of the Company's consolidated financial statements. However it will not have a significant impact on the Company's existing business and operating results and will not harm the interests of the Company and its shareholders. As at 28 April 2022 Suishen Power Engineering had completed the property rights exchange procedures. 253GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (1) Interests in subsidiaries (Cont’d) (b) Subsidiaries with significant minority interests Shareholding of minority Gains or losses attributable to Dividends distributed to minority Minority interests as at 31 Subsidiaries shareholders (%) minority shareholders in 2022 shareholders in 2022 December 2022 Bohe Energy 33.00% 2921790 - 1525747576 Zhanjiang Electric 24.00% (75971466) - 813220838 Jinghai Power 35.00% (122955569) - 921075752 Red Bay Power 35.00% (114573179) - 837700541 Huizhou Natural Gas 33.00% 68186725 25174599 694934683 Pinghai Power 55.00% 63851121 - 1006335803 Sha C Company 49.00% (447781114) - 999238701 (i) Except for Zhuhai Wind Power dividends distributed to minority shareholders in 2022 had all been paid off in the current year. 254GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (1) Interests in subsidiaries (Cont’d) (b) Subsidiaries with significant minority interests (Cont'd) Major financial information of material non-wholly-owned subsidiaries of the Group is listed below: 31 December 2022 31 December 2021 Non-current Current Non-current Non-current Current Non-current Current assets assets Total assets liabilities liabilities Total liabilities Current assets assets Total assets liabilities liabilities Total liabilities Bohe Energy 2349678889 6994607638 9344286527 2427792723 2293016300 4720809023 2609681761 6892655462 9502337223 3008450314 2359263315 5367713629 Zhanjiang Electric 2470759774 1240611761 3711371535 295849495 27101881 322951376 2650321842 1266988373 3917310215 183009639 29332641 212342280 Jinghai Power 1385798584 6990898911 8376697495 4133096606 1611955884 5745052490 1526571272 6829232837 8355804109 4033650563 1339227380 5372877943 Red Bay Power 1335712024 4929899200 6265611224 3471806657 400374451 3872181108 1409063788 5053935838 6462999626 3167753333 574464236 3742217569 Huizhou Natural Gas 517592961 2729895338 3247488299 854386780 287238842 1141625622 339090166 2930623382 3269713548 726965377 567225268 1294190645 Pinghai Power 1698935258 2801846254 4500781512 1222698173 1448381879 2671080052 1588057850 3411190163 4999248013 1230761702 1877492900 3108254602 Sha C Company 2223308298 3622700798 5846009096 1883231110 1923515331 3806746441 2916866925 3999456043 6916322968 2657111340 1273188755 3930300095 20222021 Total comprehensive Cash flows from Total comprehensive Cash flows from Revenue Net (loss)/profit income operating activities Revenue Net (loss)/profit income operating activities Bohe Energy 4246193380 8853910 8853910 399072873 2782274837 (20922634) (20922634) 437918482 Zhanjiang Electric 2527747682 (316547774) (316547774) (234066362) 2244415610 (304090266) (310815500) (404758842) Jinghai Power 6996344270 (351301626) (351301626) (197695023) 6657485630 (509356177) (509356177) 334454084 Red Bay Power 5565503172 (327351941) (327351941) 262097971 5009175976 (488495726) (488495726) (442766950) Huizhou Natural Gas 3250426792 206626438 206626438 692909637 3639314264 84762958 84762958 559716915 Pinghai Power 5210093742 116092947 116092947 119302012 4877581551 30499657 30499657 344245399 Sha C Company 5330603384 (913839007) (932845576) (1873955939) 1999829883 (568004644) (407654995) 48454458 255GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (2) Interests in joint ventures and associates (a) Basic information of significant joint ventures and associates Major Whether strategic business Place of Nature of to the Group's location registration business activities Shareholding (%) Direct Indirect Joint ventures - Guangzhou Guangzhou Industry Fuel Guangdong Guangdong Fuel trading Yes 50.00% - Associates - Shanxi Yudean Taiyuan Taiyuan Mining power Energy Shanxi Shanxi generation Yes 40.00% - Energy Group Finance Guangzhou Guangzhou Company Guangdong Guangdong Finance Yes 25.00% 15.00% Taishan Taishan Power Taishan Electric Guangdong Guangdong generation Yes 20.00% - Energy Financial Guangzhou Guangzhou Leasing Company Guangdong Guangdong Finance leases Yes 25.00% - The equity investments are accounted for using the equity method by the Group.(b) Summarised financial information of significant joint ventures 31 December 2022 31 December 2021 Industry Fuel Industry Fuel Current assets 9759872215 8607437424 Non-current assets 6787019420 3981342190 Total assets 16546891635 12588779614 Current liabilities 10717387818 9741803372 Non-current liabilities 4030111167 1169197748 Total liabilities 14747498985 10911001120 Minority interests 67010551 67010551 Attributable to shareholders of the parent company 1732382099 1610767943 Share of net assets based on shareholding (i) 866191050 805383972 Adjustments - Unrealised profits from intra-group transactions (155792047) (159913458) Carrying amount of equity investment in joint ventures 710399003 645470514 Revenue 41154918017 40287196338 Net profit 129856977 230410999 Including: Attributable to the parent company 129856977 230410999 Other comprehensive income - 15800500 Including: Attributable to the parent company - 15800500 Total comprehensive income 129856977 246211499 Dividends received from joint ventures by the Group for the current year - 29649898 256GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (2) Interests in joint ventures and associates (Cont’d) (b) Summarised financial information of significant joint ventures (Cont’d) (i) Share of asset is calculated according to shareholding based on the amount attributable to the parent company in the consolidated financial statements of joint ventures. The amount in the consolidated financial statements of joint ventures considers the impacts of fair value of identifiable assets and liabilities of joint ventures at the time of acquisition and the unification of accounting policies. The assets involved in the transactions between the Group and joint ventures do not constitute a business.(c) Summarised financial information of significant associates 31 December 2022 31 December 2021 Energy Financial Shanxi Yudean Leasing Shanxi Yudean Energy Financial Energy Company Energy Leasing Company Current assets 1782312074 1012915138 1074073055 632968295 Non-current assets 8228428605 9190015523 6627921355 7281003242 Total assets 10010740679 10202930661 7701994410 7913971537 Current liabilities 606329317 2688451249 493070520 1840650722 Non-current liabilities 1697937309 5365450397 1230741592 3944093673 Total liabilities 2304266626 8053901646 1723812112 5784744395 Minority interests 76642198 - 70239165 - Attributable to shareholders of the parent company 7629831855 2149029015 5907943133 2129227142 Share of net assets based on shareholding (i) 3051932742 537257254 2363177253 532306787 Adjustments - Others (ii) (32579800) - - - Carrying amount of equity investment in associates 3019352942 537257254 2363177253 532306787 Revenue 193310933 312042217 100199753 259494775 Investment income 1317744134 1003115 1229294936 1540565 Net profit 1319342256 92970585 1200222015 89599668 Including: Attributable to the parent company 1315439222 92970585 1200112143 89599668 Other comprehensive income - - - - Including: Attributable to the parent company - - - - Total comprehensive income 1319342256 92970585 1200222015 89599668 Dividends received from associates by the Group for the current year - (18292179) - 12576669 257GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (2) Interests in joint ventures and associates (Cont’d) (c) Summarised financial information of significant associates (Cont’d) 31 December 2022 31 December 2021 Energy Group Energy Group Finance Company Taishan Electric Finance Company Taishan Electric Current assets 8044309162 3007543498 7694411383 2930161081 Non-current assets 18171209855 8964593732 17101010480 9406287125 Total assets 26215519017 11972137230 24795421863 12336448206 Current liabilities 21896121072 2465364570 20630423850 3414107776 Non-current liabilities 91587142 - 31373853 - Total liabilities 21987708214 2465364570 20661797703 3414107776 Minority interests - - - - Attributable to shareholders of the parent company 4227810803 9506772660 4133624160 8922340430 Share of net assets based on shareholding (i) 1691124321 1901354532 1653449664 1784468086 Adjustments - Goodwill 13325000 - 13325000 - Carrying amount of equity investment in associates 1704449321 1901354532 1666774664 1784468086 Revenue 765272582 12253136746 752537763 10287027972 Net profit/(loss) 379076682 584432230 364396199 (17047790) Including: Attributable to the parent company 379076682 584432230 364396199 (17047790) Other comprehensive income 24846733 - 19273714 - Including: Attributable to the parent company 24846733 - 19273714 - Total comprehensive income/(loss) 403923415 584432230 383669913 (17047790) Dividends received from associates by the Group for the current year 123894709 - 122273962 101148944 (i) Share of net asset is calculated in proportion to the shareholding based on the amount attributable to the parent company in the consolidated financial statements of associates. The amount in the consolidated financial statements of associates considers the impacts of fair value of identifiable assets and liabilities of associates at the time of acquisition and the unification of accounting policies.The assets involved in the transactions between the Group and associates do not constitute a business. 258GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 6 Interests in other entities (Cont’d) (2) Interests in joint ventures and associates (Cont’d) (c) Summarised financial information of significant associates (Cont’d) (ii) As at 29 August 2022 Shanxi Yudean Energy applied to GEGC and the Group for a capital increase of RMB 460749100. Among which the Group shall contribute RMB 184299600 at the shareholding proportion of 40%. As at 31 December 2022 the Group actually contributed RMB 130000000 for capital increase. The Group has negotiated with Shanxi Yudean Energy that the remaining capital of RMB 54299600 would be settled within one year.(d) Summarised information of insignificant joint ventures and associates 20222021 Joint ventures: Aggregated carrying amount of investments 181171920 9350000 Aggregate of the following items in proportion Net loss (i) (2506598) - Other comprehensive income (i) - - Total comprehensive income (2506598) - Associates: Aggregated carrying amount of investments 1144068211 1070661046 Aggregate of the following items in proportion Net profit/(loss) (i) 79648992 (18173212) Other comprehensive income (i) 1855914 (332152) Total comprehensive income 81504906 (18505364) (i) The net profit/(loss) and other comprehensive income have taken into account the impacts of both the fair value of the identifiable assets and liabilities upon the acquisition of investment at the time of acquisition and the unification of accounting policies. 259GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 7 Segment information As the Group's revenue and expenses assets and liabilities are primarily associated with sale of electric power and other related products the Group's management taking the sale of electric power as a whole business periodically obtains accounting information relating to financial status operating results and cash flow for assessment. Therefore there is only the electric power segment in the Group.The Group’s revenue from main operations derives from the development and operation of electric plants in China and all assets are within China.In 2022 the revenue earned by the Group’s power plants from Southern Power Grid Company and State Grid Corporation of China amounted to RMB 51889521596 (2021: RMB 43278023920) which took up 98.53% of the Group’s revenue (2021: 97.99%). 8 Related parties and related party transactions (1) General information of the parent company (a) General information of the parent company Place of registration Nature of business Operation and management of power generation enterprises capital management of electricity assets construction of power GEGC Guangzhou plant and sale of electricity The ultimate holding party of the Company is State-owned Assets Supervision And Administration Commission of the People's Government of Guangdong Province.(b) Registered capital and changes in registered capital of the parent company 31 December Increase in the Decrease in the 31 December 2021 current year current year 2022 GEGC 23000000000 - - 23000000000 (c) The percentages of shareholding and voting rights in the Company held by the parent company 31 December 2022 31 December 2021 Shareholding (%) Voting rights (%) Shareholding (%) Voting rights (%) GEGC 67.39% 67.39% 67.39% 67.39% 260GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (2) Information of subsidiaries The general information and other related information of the subsidiaries are set out in Note 6(1)(a). (3) Information of joint ventures and associates Apart from significant joint ventures and associates disclosed in Note 6 other joint ventures and associates that involved in related party transactions with the Group are listed as follows: Name of entity Relationship with the Group GEG Property Insurance Associate Yudean Shipping Associate Yunfu B Associate (4) Information of other related parties Relationship with the GroupGuangdong Zhuhai Jinwan Power Co. Ltd. (“Zhuhai JinwanElectric”) Controlled by GEGC Guangdong Yudean Property Management Co. Ltd. (“Yudean PM”) Controlled by GEGCGuangdong Yudean Information Technology Co. Ltd. (“YudeanTechnology”) Controlled by GEGC Yudean Environmental Controlled by GEGC Guangdong Yudean Environmental Protection Materials Co. Ltd.(“Environmental Protection Materials”) Controlled by GEGC Guangdong Yuelong Power Generation Co. Ltd. (“Yuelong Power”) Controlled by GEGCGuangdong Yudean Zhongshan Thermal Power Plant (“ZhongshanThermal”) Controlled by GEGCGuangdong Port of Yangjiang Harbour Service Co. Ltd. (“Port ofYangjiang”) Controlled by GEGC Guangzhou Development District Yudean New Energy Co. Ltd.(“Yudean New Energy”) Controlled by GEGCGuangdong Energy Group Natural Gas Co. Ltd. (“GuangdongEnergy Natural Gas”) Controlled by GEGC Zhuhai Special Economic Zone Guangzhu Power Generation Co.Ltd. (“Guangzhu Power”) Controlled by GEGCGuangdong Energy Group Co. Ltd. Zhuhai Power Plant (“ZhuhaiPower”) Controlled by GEGCInner Mongolia Yudean Menghua New Energy Co. Ltd. (“MenghuaNew Energy”) Controlled by GEGC 261GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (5) Related party transactions (a) Purchase and sale of goods and rendering and receiving of services Purchase of goods and receiving of services: Pricing policies Type of related party of related party Related parties transaction transactions 2022 2021 Industry Fuel Purchase of fuel Agreement price 33544407573 29734481375 Guangdong Energy Natural Gas Purchase of fuel Agreement price 4528970844 3732802782 Receipt of operational GEGC services Agreement price 537273916 - Yudean Environmental Purchase of materials Agreement price 164508018 156679116 Environmental Protection Materials Purchase of materials Agreement price 98555303 64389931 GEG Property Receipt of insurance Insurance services Agreement price 69048661 59136449 Receipt of property Yudean PM services Agreement price 35945216 23959792 Yudean Shipping Receipt of tug services Agreement price 24891509 24226415 Port of Yangjiang Receipt of tug services Agreement price - 16431191 Others Receipt of services Agreement price 19764515 19876271 3902336555533831983322 Sale of goods and rendering of services: Pricing policies of Type of related party related party Related parties transaction transactions 2022 2021 Yudean Revenue from sale of by- Environmental products Agreement price 266854916 340736159 Provision of maintenance GEGC and repair services Agreement price 45731154 39394206 Provision of maintenance Zhongshan Thermal and repair services Agreement price 17397443 14057773 Provision of maintenance Zhuhai Power and repair services Agreement price 10034988 10799140 Others Provision of services Agreement price 24170522 24419684 364189023429406962 262GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (5) Related party transactions (Cont’d) (b) Purchase of electric power Related parties 2022 2021 Guangzhu Power 164850645 130127530 Zhuhai Jinwan Electric 96288825 121954252 Yunfu B 50925616 16203000 Yuelong Power 29489945 31152000 Zhongshan Thermal 9101731 96302800 350656762395739582 The amount for purchase of electric power is determined by the difference of decrease in current feed-in tariff and purchased quantity of electricity agreed by companies selling electric power and power plants from related parties.(c) Leases Right-of-use assets increased in the current year with the Group as the lessee: Name of the lessor Type of the leased asset 2022 2021 Energy Financial Leasing Lease of machinery and 176552263 Company equipment 5 4496403656 Others Housing rental 3595926 3673203 176911856 14500076859 Interest costs on lease liabilities in the current year with the Group as the lessee: 20222021 Energy Financial Leasing Company 269949925 152418557 Others 1039339 383203 270989264152801760 263GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (5) Related party transactions (Cont’d) (d) Guarantees The Group as the guarantor Whether the Guaranteed Guaranteed Maturity guarantee has Guaranteed party amount interest Starting date date been fulfilled or not GEGC (i) 2000000000 10734003 03/12/2019 15/09/2043 No (i) In order to perform the Loan Agreement for the Guangdong Yudean Yangjiang Shapa offshore wind power project signed between the People's Republic of China (“PRC”) and New Development Bank (“NDB”) (“Loan Agreement with NDB”) on 3 December 2019 Project Agreement signed between NDB and the People’s Government of Guangdong Province (“provincial government”) (“Project Agreement with NDB”) Loan Transfer Agreement signedbetween the Ministry of Finance and the provincial government (“Loan Transfer Agreement withthe Ministry of Finance”) and Loan Transfer Agreement signed between the Department ofFinance of Guangdong Province and GEGC (“Loan Transfer Agreement with the Department ofFinance of Guangdong Province”) Yangjiang Wind Power signed Loan Transfer Agreement with GEGC (Loan Transfer Agreement with GEGC) in 2020 specifying that GEGC shall transfer loans of RMB 2000000000 (“Project Loan”) to Yangjiang Wind Power; meanwhile the Company signed a joint liability guarantee contract with GEGC specifying that the Company provides joint liability guarantee for all liabilities of Yangjiang Wind Power under the Loan Transfer Agreement with GEGC on behalf of GEGC to the Department of Finance of Guangdong Province from 3 December 2019 to 15 September 2043 and the guarantee scope includes but not limited to principal and interest. As at 31 December 2022 Yangjiang Wind Power borrowed pledged loan of RMB 2000000000 from NDB and the interest payable was RMB 10734003.The above Project Loan was transferred to the provincial government by the Ministry of Finance under the country’s authorisation according to the same loan conditions then transferred to GEGC by the Department of Finance of Guangdong Province under the provincial government’s authorisation and finally transferred to Yangjiang Wind Power by GEGC. The above Project Loan was actually provided in entrusted payment. The cash would not flow through the bank accounts of the Ministry of Finance Department of Finance of Guangdong Province and GEGC and Yangjiang Wind Power the actual debtor of the Project Loan directly withdrew and repaid the loan through its account of NDB. The Project Loan was guaranteed by the Company for GEGC and actually the Company provided guarantee for the Project Loan obtained by Yangjiang Wind Power from NDB. Therefore after consulting the Company’s legal adviser management considered that joint liability guarantee provided by the Group for GEGC would not constitute GEGC’s occupation of the Group’s funds. 264GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (5) Related party transactions (Cont’d) (e) Lending among related parties (i) According to the 2022 Framework Agreement on Financial Services between the Company and Energy Group Finance Company Energy Group Finance Company is committed to offering the Group a credit line of no more than RMB 35000 million in 2022. In 2022 the Group borrowed a total of RMB 13699996952 (2021: RMB 11491375497) from Energy Group Finance Company based on actual capital requirement. The Group paid an interest of RMB 340462529 (2021: RMB 343902443) for such borrowings (Note 8(5)(h) for details). (ii) In 2022 the net increase of the Group’s deposits in Energy Group Finance Company was RMB 2259804496 (2021: a net decrease of RMB 1918648394) and the net increase of the Group’s other cash balances deposited in Energy Group Finance Company was RMB 6000000 (2021: a net decrease of RMB 592681). Interest due from Energy Group Finance Company amounted to RMB 112312499 (2021: RMB 126350608) (Note 8(5)(g)). In light of the frequent deposits and withdrawals the Group only disclosed the amount of net change in deposits.(iii) According to the three-party agreement signed among the Group Energy Group Finance Company and Industry Fuel the amount of the notes issued to Industry Fuel by the Group and discounted with Energy Group Finance Company represents the amount payable to Energy Group Finance Company. Given the frequent transactions only the net change of the balance of commercial acceptance notes discounted with Energy Group Finance Company as at 31 December is disclosed. As at 31 December 2022 the net amount of Energy Group Finance Company’s discounting of acceptance notes issued by the Group to Industry Fuel decreased by RMB 680000000. In 2022 the discounting interest charged by Energy Group Finance Company and borne by the Group which was included in the discounting interest expenses in the current year amounted to RMB 19284125 (2021: RMB 20074125) (Note 8(5)(h) for details).(iv) Based on the Framework Agreement on Financial Lease between the Company and Energy Finance Leasing Company in 2022 Energy Finance Leasing Company is committed to offering the Group a credit line of no more than RMB 15000 million which is reusable during the one-year agreement period. In 2022 the new lease liabilities incurred in the transaction between the Group and Energy Finance Leasing Company were RMB 1765522635 (2021: RMB 1271198318) and the finance lease payment was RMB 658995715 (2021: RMB 175247298). 265GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (5) Related party transactions (Cont’d) (f) Allocation of common expenses The Company’s branches Shajiao A Power Plant and GEGC agreed to share common expenses based on their agreed allocation percentage. In 2022 the common expenses received by the Group from GEGC were RMB 5496475 (2021: RMB 5580411).(g) Interest income Related parties Type of related party transaction 2022 2021 Energy Group Finance Company Interest on deposits 112312499 126350608 (h) Interest costs Related parties Type of related party transaction 2022 2021 Energy Group Finance Company Interest on borrowings 340462529 343902443 Energy Group Finance Company Notes discount charges 19284125 20074125 359746654363976568 In 2022 the loans provided by Energy Group Finance Company to the Group carried an annual interest rate from 2.75% to 4.26% (2021: from 2.70% to 4.90%).(i) In 2021 in order to optimise the Company's asset structure and promote high-quality development Bohe Energy a subsidiary of the Group disposed of the terminal assets to Industry Fuel at a transaction price of RMB 2800327000 (excluding tax). As at 31 December 2022 all amounts were recovered. 266GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (5) Related party transactions (Cont’d) (j) Joint investment As at 31 December 2022 subsidiaries joint ventures and associates jointly invested by the Group and GEGC are listed below: Percentage of equity attributable to GEGC Maoming Thermal 30.12% Bohe Energy 33.00% Sha C Company 49.00% Guanghe Power 49.00% Biomass Power Generation 49.00% Xinhui Power 44.10% Huaqing Power 31.85% Energy Group Finance Company 60.00% Industry Fuel 50.00% Shanxi Yudean Energy 60.00% GEG Property Insurance 51.00% Energy Financial Leasing Company 50.00% Yudean Shipping 65.00% Yueqian Power 17.48% Yangjiang Wind Power 10.96% Zhuhai Wind Power 5.72% (k) Remuneration of key management 20222021 Remuneration of key management 6557221 5677057 267GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (6) Receivables from and payables to related parties Receivables from related parties: 31 December 2022 31 December 2021 Cash at bank and on hand Energy Group Finance Company - Cash at bank 8728625253 6468820757 - Other cash balances 12000000 6000000 - Interest receivable 36396774 39533620 87770220276514354377 Accounts receivables GEGC 18753148 8500800 Zhuhai Power 5115602 6820689 Yudean New Energy 4192479 5272364 Others 11485458 11643227 3954668732237080 Contract assets Zhuhai Power 2029830 - GEGC - 3132201 Others 74139 56083 21039693188284 31 December 2022 31 December 2021 Other receivables Energy Financial Leasing Company 240453119 129864979 Yudean Environmental 131141189 76772719 Industry Fuel 1700776 1602258185 Others 16292201 8113032 3895872851817008915 Advances to suppliers Industry Fuel 1107710903 481701342 Others 1905036 3707618 1109615939485408960 Other non-current assets Yudean Technology 250000 250000 As at 31 December 2022 and 31 December 2021 the Group made no provision for bad debts of receivables from related parties. 268GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (6) Receivables from and payables to related parties (Cont’d) Payables to related parties: 31 December 2022 31 December 2021 Notes payables Energy Group Finance Company 597272076 866000000 Accounts payables Industry Fuel 4566760528 4251347098 GEGC 262414344 1101296490 Guangdong Energy Natural Gas 180748337 390755352 Yudean Environmental 40995467 35115820 Environmental Protection Materials 21639938 24316381 Others 4661297 3511517 50772199115806342658 Contract liabilities GEGC - 2606132 Other payables Menghua New Energy 10240523 5276682 GEGC - 2501436910 Energy Financial Leasing Company - 42722792 Others 6601259 6780239 168417822556216623 Lease liabilities Energy Financial Leasing Company 6697106654 3801408039 269GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 8 Related parties and related party transactions (Cont’d) (6) Receivables from and payables to related parties (Cont’d) Payables to related parties (Cont'd): 31 December 2022 31 December 2021 Short-term borrowings Energy Group Finance Company - Principal 5723903012 4977136729 - Interest 5323466 3142408 57292264784980279137 Current portion of non-current liabilities Energy Group Finance Company - Principal 222079444 191911238 - Interest 5112690 6612663 GEGC - Principal - 82000000 - Interest 527083 368958 227719217280892859 Energy Financial Leasing Company 769850008 33630163 Long-term borrowings Energy Group Finance Company - Principal 3962102717 4175122351 GEGC - Principal 500000000 268000000 44621027174443122351 270GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 9 Commitments (1) Capital commitments Capital expenditures contracted for by the Group but are not yet necessary to be recognised on the balance sheet as at the balance sheet date are as follows: 31 December 2022 31 December 2021 Buildings and power generation equipment 27198894118 23518696981 The above capital commitments will be primarily used for the construction of new electric plants and the purchase of new generator units. (2) Investment commitments (a) In September 2022 Guangdong Wind Power a subsidiary of the Group signed the framework agreement with Shandong Fengxu for the acquisition of its 100% equity in Gaotang Fengxu New Energy Co. Ltd. As at 31 December 2022 Guangdong Wind Power paid a deposit of RMB 41226000 to Shandong Fengxu (Note 4(17)) but the consideration for the equity transaction has not yet been determined.(b) In August 2022 Guangdong Wind Power a subsidiary of the Group signed the framework agreement with Hengyang New Energy for the acquisition of its no less than 65% equity in Wuxiang Lvheng Photovoltaic Power Generation Co. Ltd. As at 31 December 2022 Guangdong Wind Power paid a deposit of RMB 52200000 to Hengyang New Energy (Note 4(17)) but the consideration for the equity transaction has not yet been determined.(c) In February 2022 Guangdong Wind Power a subsidiary of the Group signed the frameworkagreement with Nanchang Hangneng New Energy Centre (Limited Partnership) (“NanchangHangneng”) for the acquisition of its 100% equity in Lianjiang Hangneng New Energy Co. Ltd.The consideration for the equity transaction has not yet been determined.(d) In September 2022 Guangdong Wind Power a subsidiary of the Group signed the framework agreement with Qinhuangdao Wohua Highway Engineering Co. Ltd. (“Wohua Engineering”) and Qinhuangdao Angqian Trading Co. Ltd. (“Angqian Trading”) for the acquisition of their 100% equity (51% of equity from Wohua Engineering and 49% of equity from Angqian Trading) in Qinglong Manchu Autonomous County Jianhao Photovoltaic Technology Co. Ltd. (“Jianhao PV”).The consideration for the equity transaction has not yet been determined. 271GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 10 Operating lease proceeds after the balance sheet date As the lessor the Group’s undiscounted lease proceeds receivable after the balance sheet date are as follows: 31 December 2022 Within 1 year 35164085 1 to 2 years 24668139 2 to 3 years 12110192 3 to 4 years 8301891 4 to 5 years 2442113 Over 5 years 2644731 85331151 11 Financial instruments and risks The Group's activities expose it to a variety of financial risks: market risk (primarily including foreign exchange risk and interest rate risk) credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance. (1) Market risk (a) Foreign exchange risk The Group’s major operational activities are carried out in the Chinese mainland and a majority of the transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from the recognised assets and liabilities and future transactions denominated in foreign currencies primarily with respect to USD. The Group’s finance department at its headquarters is responsible for monitoring the amount of assets and liabilities and transactions denominated in foreign currencies to minimise the foreign exchange risk. Therefore the Group may consider taking proper measures to mitigate the foreign exchange risk as appropriate. During 2022 and 2021 the Group did not enter into any forward exchange contracts or currency swap contracts. 272GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 11 Financial instruments and risks (Cont’d) (1) Market risk (Cont’d) (a) Foreign exchange risk (Cont’d) As at 31 December 2022 and 31 December 2021 the carrying amounts in RMB equivalent of the Group’s financial liabilities denominated in foreign currencies are summarised below: 31 December 2022 USD Financial liabilities denominated in foreign currency - Long-term borrowings 41927519 Current portion of non-current liabilities 6795228 48722747 31 December 2021 USD Financial liabilities denominated in foreign currency - Long-term borrowings 44506676 Current portion of non-current liabilities 6542011 51048687 273GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 11 Financial instruments and risks (Cont’d) (1) Market risk (Cont’d) (a) Foreign exchange risk (Cont’d) As at 31 December 2022 if the RMB had strengthened/weakened by 10% against the USD while all other variables had been held constant the Group’s net profit would have been approximately RMB 3618743 (31 December 2021: approximately RMB 3812098) higher/lower for various financial liabilities denominated in USD of subsidiaries whose recording currency was RMB.As at 31 December 2022 as the Group’s financial assets and liabilities denominated in other foreign currencies were not significant the changes in exchange rate of other foreign currencies had no significant influence on the Group.(b) Interest rate risk The Group’s interest rate risk mainly arises from interest bearing borrowings including bank borrowings debentures payable lease liabilities and long-term payables. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions.The Group continuously monitors its interest rate position. Increases in interest rates will increase the cost of new borrowing and the interest expenses with respect to the Group’s outstanding floating rate borrowings and therefore could have a material adverse effect on the Group’s financial performance. The Group makes adjustments timely with reference to the latest market conditions and may enter into interest rate swap agreements to mitigate its exposure to interest rate risk. During 2022 and 2021 the Group did not enter into any interest rate swap agreements.The Group’s interest bearing borrowings were mainly bank borrowings debentures payable lease liabilities and long-term payables with fixed and floating interest rates and the amounts of respective interest are as follows: 274GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 11 Financial instruments and risks (Cont’d) (1) Market risk (Cont’d) (b) Interest rate risk (Cont’d) 31 December 2022 31 December 2021 Short-term borrowings - Fixed interest rate 8558171817 9242146729 - Floating interest rate 7685222429 3107000000 1624339424612349146729 31 December 2022 31 December 2021 Long-term borrowings and current portion of long-term borrowings - Fixed interest rate 3032550500 - - Floating interest rate 42450700741 31587611645 4548325124131587611645 31 December 2022 31 December 2021 Debentures payable and current portion of debentures payable - Fixed interest rate 9294472072 8693083422 31 December 2022 31 December 2021 Long-term payables and current portion of long-term payables - Fixed interest rate 413964363 24960000 - Floating interest rate 270841118 96819223 684805481121779223 31 December 2022 31 December 2021 Lease liabilities and current portion of lease liabilities - Fixed interest rate 344260300 52036473 - Floating interest rate 7463703755 5546994736 78079640555599031209 As at 31 December 2022 the Group’s fixed interest bearing borrowings amounted to RMB 21777493496 and floating interest bearing borrowings amounted to RMB 57870468043 (31 December 2021: fixed interest bearing borrowings of RMB 18012226624 and floating interest bearing borrowings of RMB 40338425604).As at 31 December 2022 if interest rates on the floating rate borrowings had risen/fallen by 10 basis points while all other variables had been held constant the Group’s interest costs would have increased/decreased by approximately RMB 57870468 (31 December 2021: approximately RMB 40345191). 275GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 11 Financial instruments and risks (Cont’d) (2) Credit risk Credit risk of the Group mainly arises from cash at bank and on hand notes receivables accounts receivables contract assets other receivables and long-term receivables. The carrying amount of the Group’s financial assets reflects its maximum credit exposure on the balance sheet date.The Group expects that there is no significant credit risk associated with cash at bank and on hand since they are deposited at Energy Group Finance Company state-owned banks and other medium or large size listed banks with good reputation and high credit rating. The Group does not expect that there will be significant losses from non-performance by the counterparty.In addition the Group has policies to limit the credit exposure on notes receivables accounts receivables contract assets other receivables and long-term receivables. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial position the availability of guarantee from third parties their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history the Group will use written payment reminders or shorten or cancel credit periods to ensure the overall credit risk of the Group is limited to a controllable extent.As at 31 December 2022 the Group had no significant collateral or other credit enhancements held as a result of the debtor's mortgage (31 December 2021: Nil). 276GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 11 Financial instruments and risks (Cont’d) (3) Liquidity risk Cash flow forecasting is performed by each subsidiary of the Group. The Group is exposed to a certain degree of liquidity risk as it has net current liabilities. In view of the above-mentioned facts the Group has formulated certain plans and measures to alleviate the pressure on working capital and improve its financial position as detailed in Note 2(1).The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscounted contractual cash flows: 31 December 2022 Carrying amount Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total on balance sheet Short-term borrowings 16553465153 - - - 16553465153 16261444860 Notes payables 1495778076 - - - 1495778076 1495778076 Accounts payables 5938254013 - - - 5938254013 5938254013 Other payables 9403658031 - - - 9403658031 9403658031 Other current liabilities 4203765374 - - - 4203765374 4174850374 Current portion of non-current liabilities 4321223232 - - - 4321223232 3975249970 Long-term borrowings 1500338841 6278047921 17262962985 28480679593 53522029340 42860932628 Debentures payable 494830000 4987690000 4648510000 - 10131030000 9094489909 Lease liabilities - 624509123 1900722122 5890036507 8415267752 6870820017 Long-term payables - 47109237 224035543 690202587 961347367 641337028 43911312720119373562812403623065035060918687114945818338100716814906 277GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 11 Financial instruments and risks (Cont’d) (3) Liquidity risk (Cont’d) 31 December 2021 Carrying amount Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total on balance sheet Short-term borrowings 12562159932 - - - 12562159932 12360296429 Notes payables 1908780000 - - - 1908780000 1908780000 Accounts payables 6626567064 - - - 6626567064 6626567064 Other payables 10569763778 - - - 10569763778 10569763778 Other current liabilities 1981058957 - - - 1981058957 1658449006 Current portion of non-current liabilities 4045277512 - - - 4045277512 3697619753 Long-term borrowings 1255490613 2864007167 9130610877 24125559315 37375667972 28940577856 Debentures payable 259130000 459051484 8954652878 - 9672834362 8693083422 Lease liabilities - 581556623 1310762376 3969525034 5861844033 4728167142 Long-term payables - - - 96819223 96819223 96819223 39208227856390461527419396026131281919035729070077283379280123673 The Group’s available financing credit lines under agreement with the financial institutions as at balance sheet date are as follows: 31 December 2022 31 December 2021 Available financing credit lines under agreement with the financing institutions 76698774410 36078452111 278GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 12 Fair value estimates The level in which fair value measurement is categorised is determined by the level of the fair value hierarchy of the lowest level input that is significant to the entire fair value measurement: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly.Level 3: Unobservable inputs for the asset or liability. (1) Assets measured at fair value on a non-recurring basis As at 31 December 2022 the assets measured at fair value on a recurring basis by the above three levels are analysed below: Level 1 Level 2 Level 3 Total Investments in other equity instruments - Other equity instruments 2105271054 - 952800000 3058071054 As at 31 December 2021 the assets measured at fair value on a recurring basis by the above three levels are analysed below: Level 1 Level 2 Level 3 Total Investments in other equity instruments - Other equity instruments 547728682 - 2684300000 3232028682 279GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 12 Fair value estimates (Cont’d) (1) Assets measured at fair value on a recurring basis (Cont’d) The Group takes the date on which events causing the transfers between the levels take place as the timing specific for recognising the transfers. Sunshine Insurance was listed on the Hong Kong Stock Exchange on 9 December 2022 therefore there is a transfer between Level 3 and Level 1 for the current year.The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not traded in an active market is determined by the Group using valuation techniques. The Group adopt such valuation models as cash flow discounting model and comparable company in the market to evaluate the fair value of the other equity instrument of Level 3 financial assets. The Group adopts average price to book value ratio (PB) and discounts for lack of marketability (DLOM) as major unobservable inputs for SCG.The changes in Level 3 financial assets are analysed below: Gains recognised in other 31 December Transfer out of comprehensive 31 December 2021 Purchase Level 3 income 2022 Investments in other equity instruments - Other equity instruments 2684300000 2000000 (1653500000) (80000000) 952800000 (2) Assets and liabilities not measured at fair value but for which the fair value is disclosed Financial assets and liabilities measured at amortised cost mainly include notes receivables accounts receivables other receivables long-term receivables short-term borrowings payables lease liabilities long-term borrowings debentures payable and long-term payables.The carrying amount of the financial assets and liabilities not measured at fair value is a reasonable approximation of their fair value. 13 Capital management The Group’s capital management policies aim to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.The Group's total capital is calculated as ‘shareholders’ equity’ as shown in the consolidated balance sheet. The Group is not subject to external mandatory capital requirements and monitors capital on the basis of gearing ratio.As at 31 December 2022 and 31 December 2021 the Group's gearing ratio is as follows: 31 December 2022 31 December 2021 (Restated) Gearing ratio 78.16% 71.21% 280GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (1) Accounts receivables 31 December 2022 31 December 2021 Accounts receivables 191716383 192707778 Less: Provision for bad debts - - 191716383192707778 (a) The ageing of accounts receivables is analysed as follows: 31 December 2022 31 December 2021 Within 1 year 191716383 192707778 (b) As at 31 December 2022 the five largest amounts of accounts receivables aggregated by debtors are summarised and analysed as follows: Balance Provision for bad debts % of total balance Total balance of the five largest accounts receivables 191716383 - 100.00% (c) Provision for bad debts For accounts receivables the Company recognises the lifetime ECL regardless of whether there exists a significant financing component.(i) As at 31 December 2022 provision for bad debts made on a collective basis for accounts receivables is analysed as follows: Group 1 As at 31 December 2022 the Company’s receivables from sale of electricity amounted to RMB 191716383 which mainly comprised receivables from Southern Power Grid Company. Considering the favourable credit history of Southern Power Grid Company the Company held that there was no significant credit risk arising from receivables from sale of electricity. Since the possibility of material losses due to the default by Southern Power Grid Company was extremely low the Company made no provision for the ECL of the receivables from sale of electricity.As at 31 December 2022 there were no accounts receivables categorised in Group 2 and 3. 281GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (1) Accounts receivables (Cont’d) (c) Provision for bad debts (Cont'd) (ii) In 2022 the Company did not make any provision for bad debts of accounts receivables (2021: Nil) and there was no provision for bad debts of accounts receivables written off in the current year (2021: Nil). (2) Other receivables 31 December 2022 31 December 2021 Entrusted loans receivable 487000000 100000000 Supplementary medical insurance fund receivable 44006139 39346861 Receivables from sale of by-products 22733484 13723340 Advances receivable 4115142 2250884 Interest receivable 1569590 887856 Capacity receivable - 252000000 Others 8894452 7933062 568318807416142003 Less: Provision for bad debts (219042) (151437) 568099765415990566 (a) The ageing of other receivables is analysed as follows: 31 December 2022 31 December 2021 Within 1 year 528305879 412826194 1 to 2 years 38707456 1889053 2 to 3 years 984907 229312 Over 3 years 320565 1197444 568318807416142003 282GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (2) Other receivables (Cont’d) (b) Loss provision and changes in book balance Stage 1 Stage 3 Lifetime ECL (credit 12-month ECL (group) 12-month ECL (individual) Sub-total impaired) Total Provision Provision Provision Provision Provision Book for bad for bad for bad Book for bad for bad balance debts Book balance debts debts balance debts debts 31 December 2021 2558592 (151437) 413583411 - (151437) - - (151437) Increase in the current year 6752837 (100849) 146877178 - (100849) - - (100849) Reversal in the current year (1453211) 33244 - - 33244 - - 33244 31 December 2022 7858218 (219042) 560460589 - (219042) - - (219042) 283GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (2) Other receivables (Cont’d) (b) Loss provision and changes in book balance (Cont’d) As at 31 December 2022 and 31 December 2021 the Company did not have other receivables at Stage 2 or Stage 3. Other receivables at Stage 1 are analysed below: (i) As at 31 December 2022 other receivables at Stage 1 for which the related provision for bad debts was provided on the individual basis are analysed as follows: Provision 12-month for bad Book balance ECL rates debts Reason The counterparty is the Company’s subsidiary with a historical loss rate Entrusted loans of 0%; therefore the risk of ECL is receivable 487000000 - - extremely low.Supplementary The counterparty is Taikang Pension medical which provides custody services to insurance the Company’s supplementary fund medical insurance fund; therefore receivable 44006139 - - the risk of ECL is extremely low.The counterparty is a related party Receivables with a historical loss rate of 0% ; from related therefore the risk of ECL is parties 29454450 - - extremely low. 560460589- As at 31 December 2021 other receivables at Stage 1 for which the related provision for bad debts was provided on the individual basis are analysed as follows: Provision 12-month for bad Book balance ECL rates debts Reason The counterparty is the Company’s subsidiary with a historical loss rate Entrusted loans of 0%; therefore the risk of ECL is receivable 100000000 - - extremely low.Supplementary The counterparty is Taikang Pension medical which provides custody services to insurance the Company’s supplementary fund medical insurance fund; therefore receivable 39346861 - - the risk of ECL is extremely low.The counterparty is a related party Receivables with a historical loss rate of 0%; from related therefore the risk of ECL is parties 274236550 - - extremely low. 413583411- 284GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (2) Other receivables (Cont’d) (b) Loss provision and changes in book balance (Cont’d) (ii) As at 31 December 2022 other receivables at Stage 1 for which the related provision for bad debts was provided on the collective basis are analysed as follows: 31 December 2022 Book balance Loss provision Amount Amount Provision ratio Group 1 Within 1 year 6752837 (19060) 0.28% 1 to 2 years 784602 (39871) 5.08% 2 to 3 years 229526 (68858) 30.00% Over 3 years 91253 (91253) 100.00% 7858218(219042)2.79% As at 31 December 2021 other receivables at Stage 1 for which the related provision for bad debts was provided on the collective basis are analysed as follows: 31 December 2021 Book balance Loss provision Amount Amount Provision ratio Group 1 Within 1 year 2029378 (16388) 0.81% 1 to 2 years 437961 (43796) 10.00% Over 3 years 91253 (91253) 100.00% 2558592(151437)5.92% 285GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (2) Other receivables (Cont’d) (c) As at 31 December 2022 the five largest amounts of other receivables aggregated by debtors are analysed as follows: % of total Provision for Nature Balance Ageing balance bad debts Shaoguan Power Plant Entrusted loans 337215234 Within 1 year 59.34% - Lincang Energy Entrusted loans 81280564 Within 1 year 14.30% - Jiuzhou New Energy Entrusted loans 70073792 Within 1 year 12.33% - Supplementary medical insurance Taikang Pension fund receivable 44006139 Within 2 years 7.74% - Yudean Receivables from sale Environmental of by-products 22721897 Within 1 year 4.00% - 55529762697.71%- (3) Long-term equity investments 31 December 2022 31 December 2021 Subsidiaries (a) 35870036063 30519715049 Joint ventures (b) 865576323 804769245 Associates (c) 7519839714 6659945716 Less: Long-term equity investments - provision for impairment of subsidiaries (a) (2449328079) (1348124079) Long-term equity investments - provision for impairment of associates (c) (96327854) (96327854) 4170979616736539978077 286GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (3) Long-term equity investments (Cont’d) (a) Subsidiaries Ending balance of Declared cash 31 December Increase in Decrease in Provision for 31 December provision for dividends during 2021 investments investments impairment 2022 impairment loss the year Zhanjiang Electric 2185334400 - - - 2185334400 - - Yuejia Electric - - - - - (455584267) - Maoming Thermal 687458978 - - - 687458978 - - Jinghai Power 1930395668 520000000 - - 2450395668 - - Zhongyue Energy 963000000 - - - 963000000 (187248115) - Humen Electric 3192416 - - - 3192416 (86807584) - Technology Engineering Company 20000000 - - - 20000000 - 5155800 Bohe Energy 3167000000 321600000 - - 3488600000 - - Pinghai Power 720311347 - - - 720311347 - - Red Bay Power 2220023386 - - - 2220023386 - - Huizhou Natural Gas 1205199446 - - - 1205199446 - 51112064 Guangqian Electric 1353153223 - - - 1353153223 - - Shaoguan Power Plant 1101203999 - - (1101203999) - (1509698674) - Huadu Natural Gas 186550000 - - - 186550000 - - Dabu Electric 1040000000 867100000 - - 1907100000 - - Sub-total for next page 16782822863 1708700000 - (1101203999) 17390318864 (2239338640) 56267864 287GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (3) Long-term equity investments (Cont’d) (a) Subsidiaries (Cont’d) Ending balance Declared cash 31 December Increase in Decrease in Provision for 31 December of provision for dividends during 2021 investments investments impairment 2022 impairment loss the year Subtotal brought forward 16782822863 1708700000 - (1101203999) 17390318864 (2239338640) 56267864 Guangdong Wind Power 6872556260 832000000 - - 7704556260 - - Power Sales 230000000 - - - 230000000 - 47181475 Lincang Energy 281000000 - - - 281000000 (209989439) - Yongan Natural Gas 180000000 180000000 - - 360000000 - - Binhai Bay Company 620000000 100000000 - - 720000000 - - Daya Bay Company 145600000 84729500 - - 230329500 - - Qiming 20000000 18000000 - - 38000000 - - Huaguoquan Company 49680900 - - - 49680900 - 2833534 Dananhai Company 15000000 156000000 - - 171000000 - - Baihua Company 3000000 - - - 3000000 - - Sha C Company 1559120782 - - - 1559120782 - - Yunhe Power 1066562327 - - - 1066562327 - - Yuehua Power 541247838 - - - 541247838 - - Bijie New Energy 5000000 9500000 - - 14500000 - - Tumxuk Thermal Power 800000000 - - - 800000000 - - Shaoguan New Energy - 33473000 - - 33473000 - - Tumxuk Hanhai - 324050000 - - 324050000 - - Jinxiu Integrated Energy - 2621800 - - 2621800 - - Sub-total for next page 29171590970 3449074300 - (1101203999) 31519461271 (2449328079) 106282873 288GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (3) Long-term equity investments (Cont’d) (a) Subsidiaries (Cont’d) Ending balance Declared cash 31 December Increase in Decrease in Provision for 31 December of provision for dividends 2021 investments investments impairment 2022 impairment loss during the year Subtotal brought forward 29171590970 3449074300 - (1101203999) 31519461271 (2449328079) 106282873 Jinchang Mujin - 120495920 - - 120495920 - - Jinchang Muhong - 120495920 - - 120495920 - - Huibo New Energy - 15492360 - - 15492360 - - Xingyue New Energy - 9977500 - - 9977500 - - Maoming Natural Gas - 115345000 - - 115345000 - - Huixin Thermal Power - 104975000 - - 104975000 - - Dongrun Zhongneng - 45063020 - - 45063020 - - Shache Integrated Energy - 1206110470 - - 1206110470 - - Xinguangyao New Energy - 32923000 - - 32923000 - - Luoding New Energy - 1844520 - - 1844520 - - Jiuzhou New Energy - 39000000 - - 39000000 - - Changshan Wind Power - 89524003 - - 89524003 - - Total 29171590970 5350321013 - (1101203999) 33420707984 (2449328079) 106282873 Relevant information of the Company’s subsidiaries is set out in Note 6(1)(a).(i) As at 31 December 2022 the accumulated losses of Shaoguan Power Plant amounted to RMB 2917780188. The Company tested the recoverable amounts of the long-term equity investments in Shaoguan Power Plant and made a provision for impairment of RMB 1101203999 accordingly. 289GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (3) Long-term equity investments (Cont’d) (b) Joint ventures Movements for the current year Share of net Share of other Ending balance of Increase in profit/(loss) under comprehensive Cash dividends provision for 31 December 2021 investments equity method income declared 31 December 2022 impairment loss Industry Fuel 804769245 - 60807078 - - 865576323 - (c) Associates Movements for the current year Ending Share of net Share of balance of profit/(loss) Share of other other provision for 31 December Increase in Decrease in under equity comprehensive changes in Cash dividends 31 December impairment 2021 investments investments method income equity declared 2022 loss Taishan Electric 1784468086 - - 116886446 - - - 1901354532 - Shanxi Yudean Energy 2363177253 130000000 - 526175689 - - - 3019352942 - Energy Group Finance Company 1046702914 - - 94769170 6211682 - (77434193) 1070249573 - Yudean Shipping 247954895 - - 26726321 1855914 636197 - 277173327 - GEG Property Insurance 276532777 - - 11597609 - - (2426770) 285703616 - Weixin Yuntou 138810051 - - (52510020) - - - 86300031 (96327854) Energy Financial Leasing Company 532306787 - - 23242646 - - (18292179) 537257254 - Yueqian Power 161325870 - - 70648616 - - - 231974486 - Others 12339229 - - 2389184 - - (582314) 14146099 - 6563617862130000000-8199256618067596636197(98735456)7423511860(96327854) 290GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (4) Revenue and cost of sale 20222021 Revenue from main operations 1483048324 1522773313 Revenue from other operations 50218658 71049232 15332669821593822545 20222021 Cost of sale from main operations 1848107659 1910172008 Cost of sale from other operations 1667069 1779127 18497747281911951135 (a) Revenue and cost of sale from main operations 20222021 Cost of sale Cost of sale Revenue from from main Revenue from from main main operations operations main operations operations Revenue from sale of electricity 1483048324 1848107659 1522773313 1910172008 (b) Revenue and cost of sale from other operations 20222021 Cost of sale Cost of sale Revenue from from other Revenue from from other other operations operations other operations operations Revenue from integrated utilisation of coal ash 30835280 - 31187580 - Rental income 11653863 1037124 13524618 1010171 Others 7729515 629945 26337034 768956 502186581667069710492321779127 291GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (4) Revenue and cost of sale (Cont’d) (c) The Company's revenue is disaggregated as follows: 2022 Sale of electricity and coal ash Rental Others Total Revenue from main operations Including: Recognition at a point in time 1483048324 1483048324 Revenue from other operations Including: Recognition at a point in time 30835280 - 6031402 36866682 Recognised over a period of time - - 1698113 1698113 Rental income - 11653863 - 11653863 15138836041165386377295151533266982 2021 Sale of electricity and coal ash Rental Others Total Revenue from main operations Including: Recognition at a point in time 1522773313 - - 1522773313 Revenue from other operations Including: Recognition at a point in time 31187580 - 19526298 50713878 Recognised over a period of time - - 6810736 6810736 Rental income - 13524618 - 13524618 155396089313524618263370341593822545 As at 31 December 2022 the Company had no performance obligation that had been contracted but not yet fulfilled. 292GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 14 Notes to the Company’s financial statements (Cont’d) (5) Investment income 20222021 Investment income from long-term equity investments under equity method 880732739 697838523 Income from long-term equity investments under cost method 106282873 1632390475 Dividend income earned during the holding period of investments in other equity instruments 101262589 87731408 Interest income from entrusted loans 26780747 27667677 Recognised investment income from equity replacement - 973426650 11150589483419054733 There was no significant restriction on remittance of investment income of the Company. (6) Asset impairment losses 20222021 Impairment of long-term equity investments 1101203999 - Impairment of fixed assets - 29321084 110120399929321084 293GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 1 Statement of non-recurring profit or loss 20222021 Net profit or loss of the subsidiaries acquired in business combinations involving enterprises under common control for the period from the beginning of the period to the combination date - (658714842) Government grants recognised in profit or loss for the current period 51267272 37606578 Gains on scrapping of non-current assets 47885412 95182637 Gains on disposals of non-current assets 30802837 82842178 Waived payables 20398517 3896128 Compensation for electricity charges during the demolition and construction period 6533120 18040851 Provision for asset impairment losses due to natural disasters (83358694) - Losses on scrapping of non-current assets (73508692) (24792577) Penalties and overdue fines (59233310) (5756168) Other non-operating income and expenses other than aforesaid items 46299376 13083044 (12914162)(438612171) Effect of income tax (38582624) (55885342) Impact on minority interests (after tax) (15662748) 252056993 (67159534)(242440520) Basis for preparation of statement of non-recurring profit or loss Pursuant to the Explanatory Announcement for Information Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profit or Loss (2008) issued by the China Securities Regulatory Commission non-recurring profit or loss refers to profit or loss arising from transactions and events those are not directly related to the Company’s normal course of business also from transactions and events those even are related to the Company’s normal course of business but will interfere with the right judgement of users of the financial statements on the Company’s operation performance and profitability due to their special nature and occasional occurrence.Non-recurring profit or loss items defined according to the definition of non-recurring profit or loss and non-recurring profit or loss items listed which are defined as recurring profit and loss items are as follows: Reasons for regarding as recurring Amount of 2022 profit or loss Constant occurrence conforming to VAT refund upon collection 28893040 national policies and regulations Carbon emission allowances used to fulfil the emission reduction Constant occurrence conforming to obligation (306786693) national policies and regulations 294GUANGDONG ELECTRIC POWER DEVELOPMENT CO. LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (All amounts in RMB Yuan unless otherwise stated) [English translation for reference only] 2 Return on net assets and earnings per share Earnings per share Rate of return on weighted Basic earnings per Diluted earnings per average net assets (%) share share 202220212022202120222021 (Restated) (Restated) (Restated) Net profit attributable to ordinary shareholders of the Company (13.77)% (9.94)% (0.57) (0.56) (0.57) (0.56) Net profit attributable to ordinary shareholders of the Company after deduction of non- recurring profit or loss (13.46)% (10.41)% (0.56) (0.51) (0.56) (0.51) 295