Guangdong Electric Power Development Co., Ltd. 2017Annual Report Guangdong Electric Power Development Co., Ltd.
2017Annual Report
April 2018
Guangdong Electric Power Development Co., Ltd. 2017Annual Report I. Important Notice, Table of Contents and Definitions
The Board of Directors , Supervisory Committee ,Directors, Supervisors and Senior Executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. Mr.Huang Zhenhai, The Company leader, Mr. 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.
All the directors attended the board meeting for reviewing the Annual Report except the follows:
|||||
|-|-|-|-|
|The name of director who did|||The name of director who was|
||Positions|Reason||
|not attend the meeting in person|||authorized|
|Zhou Xi’an|Director|Due to business|Rao Subo|
|Zhang Xueqiu|Director|Due to business|Ma Xiaoqian|

This annual report involves the forecasting description such as the future plans, and does not constitute the actual commitments of the company to the investors. Investors and stakeholders should all maintain sufficient awareness of risks for this and understand the differences between plans, forecasts and commitments.
The Company is mainly engaged in thermal power generation. The business of thermal power generation is greatly affected by factors including electric power demand and fuel price. Refer to Section IX(4) of Chapter 4 of this annual report-situation faced and countermeasures for relevant information.
The preplan profit distribution of the Company deliberated and approved by the Board is: Total share of of 5,250,283,986 for Base on theCompany‘s total share capital ,the Company would distribute cash dividend to a ll the shareholders at the rate of CNY 0.80 for every 10 shares (with taxinclusive)，with 0 bonusshares（includi ngtax）, and not converting capital reserve into share capital.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV.Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
Guangdong Electric Power Development Co., Ltd. 2017Annual Report Definition
||||
|-|-|-|
|Terms to be defined|Refers to|Definition|
|Yudean Group|Refers to|Guangdong Yudean Group Co., Ltd.|
|Zhanjiang Company|Refers to|Zhanjiang Electric Power Co., Ltd.|
|Yuejiang Company|Refers to|Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.|
|Zhenneng Company|Refers to|Maoming Zhenneng Thermal Power Co., Ltd.|
|Jinghai Company|Refers to|Guangdong Yudean Jinghai Power Co., Ltd.|
|Zhanjiang Wind Power Company|Refers to|Guangdong Yudean Zhanjiang Wind Power Co., Ltd.|
|Zhongyue Compamy|Refers to|Zhanjiang Zhongyue Energy Co., Ltd.|
|Bohe Company|Refers to|Guangdong Yudean Bohe Coal & Electricity Co., Ltd|
|Guangqian Company|Refers to|Shenzhen Guangqian Electric Power 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 Hluizhou Pinghai Power Co., Ltd.|
|Humen Power Company|Refers to|Guangdong Yudean Humen Power Co., Ltd.|
|Anxin Electric Inspection & Installation|||
||Refers to|Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd|
|Company|||
|Guohua Taishan|Refers to|Guangdong Guohua Yudean Taishan Power Generation Co., Ltd.|
|Yudean Industry Fuel Company|Refers to|Guangdong Power Industry Fuel Co., Ltd.|
|Huadu Natural Gas Company|Refers to|Guangdong Huadu Natural GasT Thermal Power Co., Ltd.|
|Dapu Company|Refers to|Guangdong Dapu Power Generation Co., Ltd.|
|Wind Power Company|Refers to|Guangdong Wind Power Co., Ltd.|
|Lincang Company|Refers to|Lincang Yudean Energy Co., Ltd.|
|Qujie Wind Power Company|Refers to|Guangdong Yudean Qujie Wind Power Generation Co., Ltd.|
|Electric Power Sales Company|Refers to|Guangdong Yudean Electric Power Sales Co., Ltd.|
|Weixin Yuntou|Refers to|Weixin Yuntou Yudean Zhaxi Energy Co., Ltd.|
|Binglang Jiang Company|Refers to|Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd.|
|Yongan Natural Gas Company|Refers to|Guangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd.|
|Tongdao Wind Power Company|Refers to|Tongdao Yuexin Wind Power Generation Co., Ltd.|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report II. Basic Information of the Company
1.Company information
|||||
|-|-|-|-|
|Stock abbreviation|Yue Dian Li A, Yue Dian Li B|Stock code：|000539、200539|
|Stock exchange for listing：|Shenzhen Stock Exchange|||
|Name in Chinese|广东电力发展股份有限公司|||
|Abbreviation of Registered||||
||粤电力|||
|Company Name in Chinese(If any)||||
|English name (If any)|GUANGDONG ELECTRIC POWER DEVELOPMENT CO.,LTD|||
|English abbreviation (If any)|GED|||
|Legal Representative|Huang Zhenhai|||
||33-36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong|||
|Registered address||||
||Province|||
|Postal code of the Registered||||
||510630|||
|Address||||
||33-36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong|||
|Office Address||||
||Province|||
|Postal code of the office address|510630|||
|Internet Web Site|http://www.ged.com.cn|||
|E-mail|ged@ged.com.cn|||

Ⅱ.Contact person and contact manner
||||
|-|-|-|
||Board secretary|Securities affairs Representative|
|Name|Liu Wei|Qin Xiao|
||35/F, South Tower, Yudean Plaza, No.2|36/F, South Tower, Yudean Plaza, No.2|
|Contact address|Tianhe Road East, Guangzhou,Guangdong|Tianhe Road East, Guangzhou,Guangdong|
||Province|Province|
|Tel|(020)87570276|(020)87570251|
|Fax|(020)85138084|(020)85138084|
|E-mail|liuw@ged.com.cn|qinxiao@ged.com.cn|

Ⅲ. Information disclosure and placed
|||
|-|-|
|Newspapers selected by the Company for|China Securities Daily, Securities Times and Hong Kong Commercial|
|information disclosure|Daily(overseas newspaper for English version)|
|Internet website designated by CSRC for publishing||
||http://www.cninfo.com.cn|
|the Annual report of the Company||
|The place where the Annual report is prepared and||
||Affair Dept. Of the Board of directors of the Company|
|placed||

Ⅳ.Changes in Registration
|||
|-|-|
|Organization Code|91440000617419493W|
|Changes in principal business activities since|No change|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||
|-|-|
|listing (if any)||
|Changes is the controlling shareholder in the past||
||No change|
|(is any)||

Ⅴ. Other Relevant Information
CPAs engaged
|||
|-|-|
|Name of the CPAs|PWC Certified Public Accountants (special general partnership)|
||11th Floor,PricewaterhouseCoopers Center,2 Corporate Avenue 202 Hu Bin Road, HuangpuDistrict,Shanghai 200021, PRC|
|Office address||
|Names of the Certified Public|Wang Bin, Chen Junjun|
|Accountants as the signatories||

The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□Applicable√Not Applicable
The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period□Applicable√Not Applicable
Ⅵ.Summary of Accounting data and Financial index
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√ No
||||||
|-|-|-|-|-|
||||Changed over last year||
||2017|2016||2015|
||||（％）||
|Operating Gross income（RMB）|26,643,792,057|22,681,120,022|17.47%|25,723,810,816|
|Net profit attributable to the|743,180,431|936,534,941|||
|shareholders of the listed company|||-20.65%|3,237,733,312|
|（RMB）|||||
|Net profit after deducting of|||||
|non-recurring gain/loss attributable|||||
||718,454,119|1,074,697,758|-33.15%|2,953,985,089|
|to the shareholders of listed|||||
|company（RMB）|||||
|Cash flow generated by business|3,676,034,503|8,704,775,818|||
||||-57.77%|10,442,437,145|
|operation, net（RMB）|||||
|Basic earning per|0.14|0.18|||
||||-22.22%|0.62|
|share(RMB/Share)|||||
|Diluted gains per|0.14|0.18|||
||||-22.22%|0.62|
|share(RMB/Share)(RMB/Share)|||||
|Net asset earning ratio（%）|3.16%|3.99%|-0.83%|14.42%|
||||Changed over last year||
||End of 2017|End of 2016||End of 2015|
||||（％）||
|Gross assets（RMB）|71,007,415,323|70,677,003,760|0.47%|71,919,934,143|
|Net assets attributable to|23,695,190,653|23,378,847,225|||
|shareholders of the listed company|||1.35%|23,754,596,981|
|（RMB）|||||

Guangdong Electric Power Development Co., Ltd. 2017Annual ReportⅦ.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
√ Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders of the||Net Assets attributable to the shareholders of||
||listed company||the listed company||
||Amount in the|Amount in the previous|End of the reporting|Beginning of the|
||reporting period|period|period|reporting period|
|According to CAS|743,180,431|936,534,941|23,695,190,653|23,378,847,225|
|Items and amount adjusted according to IAS|||||
|The difference arising from|||||
|recognition of goodwill after|||||
||||64,623,000|64,623,000|
|merger of enterprises under|||||
|the same control|||||
|Difference arising from|||||
|recognition of land use value|-630,000|-630,000|18,230,000|18,860,000|
|after enterprise merger|||||
|Influence on minority interests|54,120|54,120|4,756,099|4,701,979|
|According to IAS|742,604,551|935,959,061|23,782,799,752|23,467,032,204|

 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable√Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.√ Applicable□ Not applicable
(a) The difference arising from recognition of goodwill after merger of enterprises under the same control and recognition of land value after enterprise merger.
As required by new Chinese accounting standards, the goodwill formed by the merger of enterprises under the same control shall not be recognized and capital surplus shall be adjusted. Under IFRS, the golldwill formed by the merger of enterprises under the same control shall be recognized and equal to the difference between merger cost and share of fair value of recognizable net assets of the purchased party obtained in merger. Meanwhile, all assets of the purchased party obtained in merger shall be accounted for according to their fair value while such assets shall be accounted for according to their book value according to original Chinese accounting standards for business enterprises. Therefore, this difference will continue to exist.
(b) Influence on minority interests
Housing reform loss occurred to the Company and some holding subsidiaries. Therefore,there’s some
influence on minority interests.
Guangdong Electric Power Development Co., Ltd. 2017Annual ReportⅧ.Main Financial Index by Quarters
In RMB
||||||
|-|-|-|-|-|
||First quarter|Second quarter|Third quarter|Fourth quarter|
|Operating income|5,554,665,288|6,830,821,289|7,546,970,420|6,711,335,060|
|Net profit attributable to the|||||
||-115,409,510|244,145,235|653,326,357|-38,881,651|
|shareholders of the listed company|||||
|Net profit after deducting of|||||
|non-recurring gain/loss attributable|||||
||-125,128,941|281,931,672|642,264,511|-80,613,123|
|to the shareholders of listed|||||
|company|||||
|Net Cash flow generated by|||||
||475,755,783|1,103,169,501|1,789,490,461|307,618,758|
|business operation|||||

Whether significant variances exist between the above financial index or the index with its sum and the financial index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes√No
Ⅸ.Items and amount of non-current gains and losses
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|Amount (2017|Amount (2016|Amount (2015|Notes|
|Non-current asset disposal|-4,720,404||||
|gain/loss(including the write-off part for||-3,723,321|238,178,694||
|which assets impairment provision is made)|||||
||41,344,595|||In the current period,the newly addedsubsidy fortechnologicaltransformation ofenterprises by Specialfunds for Industrialand InformatizationDevelopment wasRMB 18.6 million.|
|Govemment subsidy recognized in current|||||
|gain and loss(excluding those closely related|||||
|||19,074,097|16,112,458||
|to the Company’s business and granted|||||
|under the state’s policies)|||||
|Gains and losses from exchange of|||||
||||21,977,012||
|non-monetary assets|||||
|Expenses on business reorganization, such|||||
|as expenses on staff arrangements,||-59,541,635|||
|integration, etc.|||||
|Switch back of provision for depreciation of|||||
|account receivable which was singly taken|||20,790||
|depreciation test.|||||
|Effect on current gains/losses when a|||||
|one-off adjustment is made to current|||||
|gains/losses according to requirements of||-125,842,425|||
|taxation, accounting and other relevant|||||
|laws and regulations|||||
|Other non-business income and expenditures|6,502,013|-104,916,156|29,997,321||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||
|-|-|-|-|-|
|other than the above|||||
|Taxes paid by tax auditors, late fees and|||||
||-7,274,913||||
|fines|||||
||10,104,459|||The price in coalfutures rose and theoperating profit fell.|
|Less: Amount of influence of income tax||18,950,258|17,651,335||
|Influenced amount of minor shareholders’|1,020,520||||
|||-155,736,881|4,886,717||
|equity (after tax)|||||
|Total|24,726,312|-138,162,817|283,748,223|--|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
We are mainly occupied in investment, construction and management of electric power projects. We have been upholding “electricity-oriented, pluralistic development”, with power as the mainstay and diversified structure of power source. With the exception of development, construction and operation of large-scale coal-burning
power-generating plants, we also set our feet on clean energy projects like LNG power generation, wind power generation and hydroelectric generation, which are reliably transmitted to innumerable users through power-grid companies. As of December 31,2016, the controllable installed capacity is 20.15 million KW, where the
controllable installed capacity of coal-burning power generation, LNG generation and renewable energy
generation like wind power and hydropower is 17.35 million KW, 2.34 million KW and 460000 KW respectively. Income source is primarily contributed by power production and sales, and main business income is derived from Guangdong Province. The company electricity sales price is subject to the benchmark price verified by the price authority per relevant policies based on National Development and Reform Commission (NDRC) and the
electricity transaction price through the market trade implementation per Guangdong Electricity Market Trade Basic Rules and supporting files. In the reporting period, the electricity sold is 67.976 billion KWH, 11.463 billion KWH YoY increase; average price stated in the consolidated statements is 451.82 Yuan/ KWH (tax inclusive, the same below), YoY drop of 10.74 Yuan/ KWH. The total operating income was RMB 26,643,792,100, an increase of RMB 3,962,672,100 or an increase of17.47% 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, thecompany’s fuel costs were RMB 1,7,017,543,600, which accounted for73.06% of the main business costs, an increase of RMB 5,972,218,100 or an increase of54.07%; and the unit price of standard coal (coal oil-gas) was 817.12 yuan/ton, an increase of 191.17 yuan/ton or an increase of30.54% over the same period of last year.
During the reporting period, as affected by the high coal price and the “concession of benefit” to power market trading and the company made the provision for impairment for the upfront expenses of some of thecompany’s in-process constructions, available-for-sale financial assets and early retirement assets, theCompany’s net profit attributable to shareholders of the parent company dropped significantly year-on-year andit’s RMB 743,180,400, a year-on-year decrease of20.65%; and the earnings per share was 0.14 yuan.
Guangdong Electric Power Development Co., Ltd. 2017Annual ReportⅡ.Major Changes in Main Assets
1.Major Changes in Main Assets
|||
|-|-|
|Main assets|Major changes|
|Equity assets|No major changes|
|Fixed assets|No major changes|
|Intangible assets|No major changes|
||The YOY increase of 33.49% was mainly due to the Huizhou Natural Gas Cogeneration|
|Construction in process|Expansion Project and the ultra-low emission transform of Zhongyue No. 1 and No. 2|
||power generation units.|
||The YOY decrease of 65.47% was mainly due to that the prepaid equipment in the|
|Other non-current assets||
||previous period had been put into use.|

2. Main Conditions of Overseas Assets
□ Applicable√Not applicable
III.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. Regional power-generating company with installed capacity expanded in a stage-based and leap-frog way The power-generating assets are mainly distributed in Guangdong. Major assets reorganization realized since 2012 has given great impetus to power-generating installed capacity By the end of 2017, the Company has put into production of a controlled installed capacity of 20.15 million kilowatts, and the on-grid electricity was 67.976 billion kw, which accounted for17.62% share of the Guangdong province's electricity purchase market, an increase of1.75% YOY-representing the continuous increase.
2. Yudean Group has oriented our company as a sole listed platform for domestic power-generating assets integration
We are the shareholder of Yudean Group, one of the biggest power-generating groups in south China, which takes advantage of its source, assets scale, to give sustaining support to ourcompany’s advancement and expansion. It has oriented us as a sole listed platform for domestic power-generating assets integration. We are endowed with a priority offered by it in power source development, asset acquisition.
3. State-of-the-art unit performance built on implementation of the energy-saving dispatching policy
By virtue of high parameters, large capacity, nice efficiency, low coal consumption, reliable operation and environmental protection, our thermal power generating unit units are given priority in energy-saving dispatching. As a result, our units are more competitive in on-grid price.
4. Stepwise optimization of industrial structure and power source structure
The 13th Five-Year Plan of the Company specified the overall strategy of taking power generation as the core
business, optimizing the development of coal-fired power, steadily developing gas power, vigorously developing
clean energy such as wind power and hydropower, continuously optimizing the power supply structure, and
heading to an efficient, clean and low-carbon road. In 2017, there were newly-added 230,000 kilowatts of land
Guangdong Electric Power Development Co., Ltd. 2017Annual Report wind power projects and 0.5 million kilowatts of offshore wind power projects of the company obtained the approval, besides a number of gas and wind power projects have been under construction. In the next few years, the company will, centered on its 13th Five-Year Plan, continue to increase the development of clean energy and actively promote the green and coordinated development.
5. Experienced management, sophisticated production technology
Administrators and technical experts are veterans in operation and management of power plants, and key staff have years of practical experience in the power sector. We have invested enormous efforts to the standard of management, intensifying management and paying high priority to launch energy-conserving and
consumption-reducing programs. Finally, coal consumption on thermal power units is declining year by year in return for these efforts.
6. Hold fast to the opportunity of “electric price reform”, To realize the transformation from a power generation enterprise to an energy comprehensive service enterprise.
In July 2015, we established a wholly-funded electric marketing company, aiming at competing with electricity marketing, sharing dividend from “”electric price reform”, The electricity sales company has already accumulated plenty of clients based on the power generation enterprises. The company will continue promoting the electricity sales business vigorously, adopt positive measures subject to relevant polices of the national power system reformation for expanding the power distribution and sales business and comprehensive energy services and cultivating the new profit increase points.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report IV.Management’s Discussion and Analysis
Ⅰ.General
In 2017, the electricity consumption of the whole society in Guangdong Province was 595.897 billion kwh, an increase of6.22% YOY, so the growth rate continued to rise. The West-to-east electricity transmission increased by2.5% YOY, a slightly slowed growth; the provincial nuclear power supply increased by15.51%, a slightly slowed growth, e.g. the Yangjiang NO.4 Nuclear Power Unit with the installed capacity of 1.086 million kilowatts was put into operation during the year; the gas electricity in the province increased by2.18% year-on-year, a sharp slowdown in growth; and the hydropower of the province fell by3.2%, the electricity generation of coal-fired units in the province increased by30.4% year-on-year. The company's whole-year on-grid electricity accounted for17.62% share in the intra-provincial power purchase market, an increase of 1.75% year-on-year, with the percentage continued to increase.the average utilization hours for the company holding coal-fired units are 3348 hours increased by 721 hours on year-on-year basis.
As of the end of 2017, the total assets of the Company by consolidated statements amounted to RMB 71 7 billion, an increase of0.47% YOY; and the interests attributable to shareholders of the parent company was RMB 23.695 billion, an increase of1.35% YOY. The company achieved the operating income by consolidated statements of RMB 26.644 billion, an increase of17.47% YOY; the net profit attributable to shareholders of the parent company was RMB 743 million, a YOY decrease of20.65%; the earnings per share was RMB 0.14(it’s RMB 0.18 in the same period of last year). The company's liabilities by consolidated statements totaled to RMB 41.305 billion, with that the asset-liability ratio was58.17%.
In 2017, the electricity market trading scale in Guangdong Province continued to expand. The company actively strived for the base quantity of electricity and competed for the "market electricity", and the signing of bilaterally negotiated trading electricity by the subordinate power plants reached24.04% in this kind of market trading, with that the electricity participated in the market bidding accounted for18.29% in this kind of market trading; the whole-year electricity trading volume of the subordinate electric power sales company accounted for12.43% in this kind of market trading, with the scale of electricity-sales continued to occupy the first place in the province's electricity sale market. Through the power generation rights trading, the power plants in some mountainous areas realized the loss-reduction and the profit increase by RMB 41.97 million. The company vigorously developed the clean energy business, and the clean energy business accounted for56.99% of the net profit attributable to shareholders of the parent company, an increase of 11.36% YOY, which had an increasing contribution to the net profit attributable to shareholders of the parent company.
According to the “Thirteenth Five-Year Development Planning Report” reviewed and approved by the Board of Directors, the company adheres to the development direction of clean energy. During the reporting period, the 4 newly-added controllable land wind power projects totaled in 0.23 million kilowatts obtained the approval, 2 controllable offshore wind power projects totaled in 0.498 million kilowatts obtained the approval, and one 50,000 kilowatts controllable land wind power project was included into the local 2017 wind power development alternative choice plan. In the first quarter of 2018, the Company gained approval for another newly-added 50,000
Guangdong Electric Power Development Co., Ltd. 2017Annual Report kilowatts controllable land wind power project, and 2 controllable offshore wind power projects totaled in 0.5 million kilowatts were included in the Key Construction Project Plan of Guangdong Province in 2018.
During the reporting period, the company's first holding hydropower project, Yunnan Lincang Dayakou
Hydropower Project (102,000 kilowatts), was wholly put into operation in November; and the holding Zhanjiang Hongxin Tower Wind Power Project (49,500 kilowatts) was put into operation at the end of the year. The
above-mentioned two projects newly added a total of controllable installed capacity of 151, 500 kilowatts. The Zhanjiang Shibanling wind power project and the Huizhou natural gas cogeneration expansion project have been carried out as planned; the Yangjiang Shaba Offshore Wind Power Project and the Zhanjiang Wailuo Phase I Offshore Wind Power Project started construction in October and in December respectively. Meantime, the company conscientiously implemented the national requirements for ultra-low emissions and energy-saving transformation of coal-fired units, with the investment totaled to RMB 2.416 billion, and the Company completed the transformation of ultra-low emissions of all coal-fired units in the year, with the emission indicators lower than the national emission limits.
During the reporting period, the board of directors of the company successfully completed the general election because of the expiration of the term, organized and held three on-site meetings of the board of directors and 4 communications meetings of the board of directors throughout the year, completed the review and approval of 46 proposals, and organized and held two general meetings of shareholders-which deliberated and adopted 18 proposals. The company further perfected the decision-making items and procedures of "Three-Importances& One-Large", implemented the principle of "first inner-party, then submit", and completed the related work of incorporating the general requirements of the Party construction work of state-owned enterprises into the articles of association. The Company Completed the standard system of "scrap, reform, set up", revised and added a total of 64 items in the institution rules, thus the standard operation level of the company was further improved.Ⅱ.Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
|||||||
|-|-|-|-|-|-|
||2017||2016|||
||||||Increase /decrease|
||Amount|Proportion|Amount|Proportion||
|Total operating|26,643,792,057||22,681,120,022|||
|||100%||100%|17.47%|
|revenue||||||
|Industry||||||
|Electric power ,||||||
|Steam sales and|26,393,153,579|99.06%|22,522,639,179|99.30%|17.18%|
|labor income||||||
|Other|250,638,478|0.94%|158,480,843|0.70%|58.15%|
|Products||||||
|Sales Electric Power|26,250,079,293|98.52%|22,342,322,648|98.51%|17.49%|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||
|-|-|-|-|-|-|
|Labor income|49,166,707|0.18%|110,563,280|0.49%|-55.53%|
|Steam income|93,907,579|0.35%|69,753,251|0.31%|34.63%|
|Comprehensive||||||
||203,698,123|0.76%|65,549,708|0.29%|210.75%|
|utilization of fly ash||||||
|Sales material||||||
||3,228,908|0.01%|58,627,109|0.26%|-94.49%|
|income||||||
|Lease revenue|14,691,747|0.06%|9,538,280|0.04%|54.03%|
|Certified emission||||||
|reduction sales|0|0 %|164,291|0 %|-100 %|
|revenue||||||
|Other|29,019,700|0.12%|24,601,455|0.11%|17.96%|
|Area||||||
|Guangdong|26,600,595,122|99.84%|22,654,178,908|99.88%|17.42%|
|Yunnan|43,196,935|0.16%|26,941,114|0.12%|60.34%|

 (2)Situation of Industry, Product and District Occupying theCompany’s Business Income and Operating Profit with Profit over10%
√ Applicable□Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
|||||of revenue in the|of business cost|of gross profit|
||||Gross profit||||
||Turnover|Operation cost||same period of|over the same|rate over the same|
||||rate(%)||||
|||||the previous|period of|period of the|
|||||year(%)|previous year (%)|previous year (%)|
|Industry|||||||
|Electric power ,|||||||
|Steam sales and|26,393,153,579|23,277,935,709|11.80%|17.18%|31.14%|-9.38%|
|labor income|||||||
|Products|||||||
|Electric power ,|||||||
|Steam sales and|26,393,153,579|23,277,935,709|11.80%|17.18%|31.14%|-9.38%|
|labor income|||||||
|Area|||||||
|Guangdong|26,600,595,122|23,264,845,471|12.54%|17.42%|30.86%|-8.98%|

 Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest onyear’s scope of period-end.
□ Applicable√Not applicable
(3)Whether theCompany’s Physical Sales Income Exceeded Service Income
√ Yes □ No
|||||||
|-|-|-|-|-|-|
|Classification|Items|Unit|2017|2016|Changes|
||Sales volume|Billion kwh|67.976|56.513|20.28%|
|Electric Power||||||
||Production|Billion kwh|72.029|59.923|20.20%|

 Explanation for a year-on–year change of over30%
□ Applicable√Not applicable
Guangdong Electric Power Development Co., Ltd. 2017Annual Report (4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
√ Applicable□Not applicable
In the reporting period, China Southern Power Grid was our No.1 client, Its sales of 26.25 billion yuan taking up approximately98.52% of annual sales. Company andcompany’s holding subsidiaries had signed a Power Purchase Agreement with China Southern Power Grid and its holding subsidiaries in accordance to related provisions. By the end of the reporting period, the agreement had been executed rightfully.
(5)Component of business cost
Industry classification
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2017||2016|||
||||||Proportion in the|Increase/Decre|
|Industry|Items||Proportion in the||||
|||Amount||Amount|operating costs|ase|
||||operating costs (%)||||
||||||(%)||
|Electric Power|Fuel cost|17,017,543,636|73.06%|11,045,325,529|62.07%|54.07%|
||Depreciation||||||
|Electric Power||3,465,797,703|14.88%|3,897,930,880|21.91%|-11.09%|
||expense||||||
|Electric Power|Labor cost|1,377,719,311|5.91%|1,454,916,789|8.18%|-5.31%|
|Electric Power|Other|1,431,228,019|6.14%|1,395,453,184|7.84%|2.56%|

 Notes
The Company is in power sector and mainly engaged in power generation at present. The cost is composed of fuel cost, depreciation expenses, labour cost and other expenses. Fuel cost accounts for about73.06% of total cost. which was mainly affected by the increase in power generation volume and the continuous increase in coal price, so that the fuel costs increased significantly YOY.
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes□No
New Subsidiary Establishment of the Year
||||||||
|-|-|-|-|-|-|-|
|Name|Business place|Registered|Nature|Registered capital|Proportion|Acquired|
|||address|||(%)||
|Tongdao Yuexin Wind PowerGeneration Co., Ltd.|Huaihua, Hunan|Huaihua,Hunan|Electric Power|10,000,000|100%|Invested|
|Hunan Xupu Yuefeng New EnergyCo., Ltd.( Indirect subsidiary)|Huaihua,Hunan|Xupu,Huaihua ,Hunan|Electric Power|20,000,000|100%|Invested|
|Guangxi Wuxuan Yuefeng NewEnergy Co., Ltd.( Indirect subsidiary)|Guangxi|Wuxuan,Guangxi|Electric Power|20,000,000|100%|Invested|
|Huizhou Pingdian Energy Co.,Ltd.(Indirect Subsidiary)|Huizhou|Huizhou|Electric Power|20,000,000|45%|Invested|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report (7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in theCompany’s Report Period
□ Applicable√Not applicable
(8)Situation of Main Customers and Main Supplier
Information of theCompany’s top 5 customers
|||
|-|-|
|Total sales amount to top 5 customers (RMB)|26,561,252,714|
|Proportion of sales to top 5 customers in the annual sales(%)|99.68%|
|Proportion of the sales volume to the top five customers in the||
||0.82%|
|total sales to the related parties in the year||

Information of theCompany’s top 5 customers
|||||
|-|-|-|-|
|No|Name|Amount（RMB）|Proportion|
|1|GPGC|26,250,079,293|98.52%|
|2|Guangdong Yudean Group Co., Ltd.|218,494,067|0.82%|
|3|Huizhou Huiling Huacheng Co., Ltd.|62,395,050|0.23%|
||China petrochemical co., Ltd. Maoming|||
|4||16,492,843|0.06%|
||Branch|||
||Dongguan Dejin Energy Technology Co.,|||
|5||13,791,461|0.05%|
||Ltd.|||
|Total|--|26,561,252,714|99.68%|

 Other explanation :
√Applicable□Not applicable
Guangdong Yudean Group Co., Ltd is the controlling shareholder of the Company, which is a connected
relationship with the Company.
Principal suppliers
|||
|-|-|
|Total purchase of top 5 Suppliers（RMB）|17,407,935,962|
|Percentage of total purchase of top 5 suppliers In total||
||73.52%|
|annual purchase(%)||
|Proportion of purchase amount from the top 5 suppliers in||
|the total purchase amount from the related parties in the|57.95%|
|year||

Information about the top 5 suppliers
|||||
|-|-|-|-|
|No|Name|Amount（RMB）|Proportion|
|1|Guangdong Yudean Group Co., Ltd.|13,721,240,442|57.95%|
|2|Guangdong Dapeng ING Co., Ltd|1,629,826,249|6.88%|
||Guangdong Zhutou Electric Power|||
|3||1,148,345,889|4.85%|
||Industry Fuel Co., Ltd.|||
|4|Dongfang Electric Co., Ltd.|635,571,521|2.68%|
|5|GPEC|272,951,861|1.15%|
|Total|--|17,407,935,962|73.52%|

 Other explanation :
√ Applicable□Not applicable
Guangdong Yudean Group Co., Ltd is the controlling shareholder of the Company, which is a connected
relationship with the Company.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report 3.Expenses
In RMB
||||||
|-|-|-|-|-|
||2017|2016|Increase/Decrease(%)|Notes|
||8,223,996|2,807,165||Mainly due to the substantial increase in|
|||||sales expenses caused by the expansion of|
|Sale expenses|||192.96%|the operating scale of the electricity sales|
|||||company and the market electricity|
|||||price-bidding business.|
|Administration expenses|654,998,125|775,880,023|-15.58%||
|Financial expenses|1,279,255,541|1,369,698,178|-6.60%||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report4.R& D Expenses
|||||||||
|-|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress|Target and influence||
|1|Shenzhen GuangqianElectric Power Co.,Ltd.|Energy conservation research and application of M701F combined-cycle generator unit underload and transient operation|Optimize the unit operation way throughresearch and therefore meet economic indexes including decrease on the integrated power supply coal consumption andcomprehensive station service power consumption rate, etc.||Completed||1)Optimize the operation way and achieve the good econo|
||||||||mic performance.|
||||||||2)Available for reasonable arrangement of the gas consum|
||||||||ption start for decrease of the start and end time of boile|
||||||||r and extension of the equipment service life;|
||||||||3)Shorten the unit generation time and intensify the peaki|
||||||||ng unit characteristics|
|2|Shenzhen GuangqianElectric Power Co.,Ltd.|Secondary development ofthe visualized work-sheetissuing system function||Improve the work sheet issuing efficienc|Completed||Improve further the visualized work-sheet issuing system|
|||||y, decrease the repair and isolation risks|||graphic issuing function through the secondary developme|
|||||, improve the work sheet management l|||nt, optimize the standard work-sheet management procedur|
|||||evel, and provide several training types|||e and solve the failed printing of the work sheet label an|
|||||for improvement of the isolation level o|||d other problems. And improve the visualized work-sheet|
|||||f operators.|||issuing system performance and work efficiency further.|
|3|Shenzhen GuangqianElectric Power Co.,Ltd.|Optimization and maintenance of production technology management system|Optimize and upgrade the operation recording module, teams construction module, system management module, regularworking module, two-work-sheet management module and backup function||Completed||Through collecting the production technology management|
||||||||system optimization and upgrade opinions, optimize and|
||||||||upgrade the operation recording module, teams constructio|
||||||||n module, system management module, regular working m|
||||||||odule, two-work-sheet management module and backup fu|
||||||||nction for improvement of the management efficiency, eli|
||||||||mination of operation defects and improvement of the sys|
||||||||tem compatibility.|
|4|Guangdong ElectricPower DevelopmentCo., Ltd. Shajiao APower Plant|Special coal wharf customs control site rectificationproject||To meet the customs control requiremen|Completed|The rectification project meets the customs control requirements on the coal wharf of the Plant and avoids the berthing limitation of the customs on the imported coal ships.||
|||||ts on the special coal wharf in terms of||||
|||||the customs control facilities setting, c||||
|||||ontrol site operation information linkage||||
|||||and paperless operation, etc.||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress|Target and influence||
|5|Guangdong ElectricPower DevelopmentCo., Ltd. Shajiao APower Plant厂|Optical fiber laying at theside of Shajiao A for the group emergency command system|For realization of Shajiao A power plant emergency command system establishment and the HD video surveillance application of the Plant||Completed||The plant current MIS network fails to satisfy the video|
||||||||data flow as the code rate reaches 1080P and we also pl|
||||||||an to upgrade and rebuild the mode video surveillance ne|
||||||||twork into the digital video surveillance network simultan|
||||||||eously. Under advance of the group emergency command|
||||||||system and the plant HD video surveillance application,|
||||||||the current plant optical fiber link need to be upgraded a|
||||||||nd rebuilt for establishing the group emergency command|
||||||||sub-system and networking for the HD video surveillanc|
||||||||e of the Plant departments.|
|6|Guangdong ElectricPower DevelopmentCo., Ltd. Shajiao APower Plant|Check project on the information system safety based on the source code||Build one source-code-based safety insp|Completed|Check the source code safety of the newly-developed business system and control the quality of the source code due to inclusion of lots of important information of the Plant in the major business system. We shall understand thenewly-developed business system safety, grasp the current source code safety hazards, recognition errors and software frame problems, discover any safety hazard promptly,conduct rectification evaluation for the same directly, realize strengthening the source code check during the cycle of the newly-developed business system and improve the safety of the same.||
|||||ection system for the source code safety||||
|||||check of the main business system and||||
|||||the late-stage-built business system of t||||
|||||he Plant, check the loophole and backd||||
|||||oor existence and illegal usage of open||||
|||||source code within the business system||||
|||||source code, analyze the safety of the b||||
|||||usiness system source code deeply for t||||
|||||he design defect and logical error of th||||
|||||e business system software and provide||||
|||||the reasons and repair suggestions for t||||
|||||he same.||||
|7|Guangdong ElectricPower DevelopmentCo., Ltd. Shajiao APower Plant|Operating budget management platform(Tonghai company’s information management software)||To coordinate with the power plant in i|Completed|1. Realize the electronic way for whole materials management process;2. Establish the link between materials management and project management;3. To manage the capital budget reasonably and effectively and achieve the application purpose (pre-planning, course surveillance and post-examination), the link between thebusiness process and budget information need to be realized for the real-time surveillance and control on the budget expenditure in each procedure stage and the budget expenditure statistics and analysis from several aspects.||
|||||mplementation of the new management||||
|||||system, implement optimization and tran||||
|||||sformation of the business procedures, r||||
|||||emove the horizontal barriers between a||||
|||||pplication systems, eliminate the informa||||
|||||tion isolated island, facilitate the transmi||||
|||||ssion and share of various types of data||||
|||||, meet the target requirements of inform||||
|||||ation concentration and effective manage||||
|||||ment and build the uniform comprehensi||||
|||||ve budget management platform||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||
|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose|Project progress|Target and influence||
|8|Guangdong ElectricPower DevelopmentCo., Ltd. Shajiao APower Plant|Build the power generation market comprehensive data support platform|Build the plant generation market comprehensive data support platform, reflect the planned and actual production activity condition of the plant at present andin the coming period, simulate and predict each-type indicator trend of the coming period for providing the strong basic data support for the plant participation into the power generation market.|Basic completion of the fundamental functionwith one remaining sub-module to be testedonline next week||To grasp the whole-plant production data promptly and co|
|||||||mprehensively, improve the plant fuel consumption rate,|
|||||||decrease the enterprise production cost and enhance the p|
|||||||ower generation market offer competition, it shall establis|
|||||||h the power generation market comprehensive data suppor|
|||||||t platform, record the whole plant production condition, f|
|||||||urnace feeding data, combustion rate, coal yard inventory,|
|||||||production daily and monthly reports, predict the plant p|
|||||||roduction activities through multiple ways including the re|
|||||||levant indictor analysis and trend analysis, etc. and impro|
|||||||ve the plant competition in the market.|
|9|Guangdong ElectricPower DevelopmentCo., Ltd. Shajiao APower Plant|Energy management center building research and application|Optimization and upgrade of the currentenergy consumption information system.|Completed||The plant is equipped with good energy consumption info|
|||||||rmation foundation and complete energy consumption data|
|||||||measurement, statistics and analysis systems, which provi|
|||||||de a good basis for the energy management center establi|
|||||||shment. Based on the current energy consumption collecti|
|||||||on and analysis systems, the optimization and upgrade co|
|||||||mbining the market requirements on the energy manageme|
|||||||nt center will save resources effectively, avoid the repeate|
|||||||d construction, realize the energy consumption data transp|
|||||||arency, energy efficiency index standardization and long s|
|||||||ervice life of systems and achieve maximum work efficie|
|||||||ncy within the minimum time.|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress|Target and influence||
|10|Guangdong ElectricPower DevelopmentCo., Ltd. Shajiao APower Plant|PD net safety protectionconstruction project||In accordance with the outline and cont|Completed|(1) Threat evaluation platform construction: conduct the regular safety risk evaluation on the power secondary system network and related mainframe, special power communication protocol and sub-stations.(2) Log audit system establishment: realize the log audit for safety and network equipment in the power secondarysystem production control large zones, the zone application system log collection and uniform management.(3)Risk evaluation grading filing: invite any third party evaluation agency to conduct the safety risk evaluation onmajor information system of the Plant and file the samewith Ministry of Public Security.(4) Purchase the three-year feature library upgrade licensefor PDnet intrusion detection management system (Venustechnology).||
|||||ent of Provisions on the Security Protec||||
|||||tion of the Electric Power Monitoring S||||
|||||ystems, Notice of Special Check Work||||
|||||on Security Protection of the Electric P||||
|||||ower Monitoring Systems of National E||||
|||||nergy Administration, Protection Assess||||
|||||ment on Information Security Level in||||
|||||Power Industry, Special Check on Secur||||
|||||ity Protection of the Electric Power Mo||||
|||||nitoring Systems of Guangzhou Yudean||||
|||||Group Co., Ltd. and Guangdong Power||||
|||||Grid Power Dispatching Control Center||||
|||||File, etc. of NDRC, conduct the PDnet||||
|||||information safety construction and plan||||
|||||to adopt the principle of the safety str||||
|||||engthening work for major projects prio||||
|||||r to those with low situation gravity.||||
|11|Guangdong ElectricPower DevelopmentCo., Ltd. Shajiao APower Plant|Networking construction at the side of Shajiao A for the emergency command system|Establish the video surveillance connecting with the group directly through the information way and build the video surveillance subsystem between the groupand the Plant||Completed|Build the networking for the digital video surveillance ofthe Plant, make the normal connection of the HD cameragun and HD multimedia video surveillance data into thesurveillance network, realize the uniform video surveillance center for the plant and build the special network forthe video surveillance of the Plant.||
|12|Guangdong ElectricPower DevelopmentCo., Ltd. Shajiao APower Plant|Operating management platform expansion|To standardize the company internal management, improve the work efficiency,connect the communication channel of departments and eliminate the informationisolated island||Completed||Facilitate the transmission and share of various types of d|
||||||||ata, meet the target requirements of information concentrat|
||||||||ion and effective management, build the uniform operatin|
||||||||g management information platform between Jinfan and E|
||||||||ssence, improve the enterprise management level through i|
||||||||nformation ways and the market competition.|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress|Target and influence||
|13|Guangzhou HuizhouNatural Gas PowerGeneration Co., Ltd.|Equipment point inspection system and hardware upgrade and transformation||Develop point inspection APP, realize t|Development and test of eachfunctional modules of the system||Break the traditional point inspector single point patrol in|
|||||he site point inspection through the sma|||spection mode and the bottleneck about the incompatibilit|
|||||rtphone, decrease the purchase cost of t|||y of the original point inspection system with the third p|
|||||he point inspector and break the origina|||arty hardware and equipment, establish the equipment ma|
|||||l manufacturer restriction on hardware;|||nagement information platform and mobile phone APP for|
|||||optimize and upgrade the original syste|||integrating relevant manufacturing data of the power plan|
|||||m combining the equipment point inspe|||t, realizing the real-time data inquiry during the point ins|
|||||ction usage current situation of the plan|||pection, data share and the equipment information integrat|
|||||t and management demand.|||ion purpose.|
|14|Guangzhou HuizhouNatural Gas PowerGeneration Co., Ltd.|Information security levelprotection assessment project in 2017||Conduct the information safety level pro|The contractorsubmits the assessment report(including rectification suggestions) for four systems subjectto the contract|Obtaining the level protection filing certificate from NetDepartment of the municipal public security bureau.||
|||||tection assessment work for the current||||
|||||three platform systems (including 19 su||||
|||||bsystems)and the main content includes||||
|||||preparing the grading filing documents f||||
|||||or three Grade II information systems a||||
|||||fter integration, assisting the local publi||||
|||||c security department in grading filing,||||
|||||conducting the information safety level||||
|||||assessment in terms of the physical com||||
|||||puter room, network environment, mainf||||
|||||rame environment, application safety an||||
|||||d management system, etc., submitting t||||
|||||he Information Safety Level Protection||||
|||||Assessment Report and obtaining the le||||
|||||vel protection filing certificate from Net||||
|||||Department of the municipal public sec||||
|||||urity bureau in the end.||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress||Target and influence|
|15|Guangzhou HuizhouNatural Gas PowerGeneration Co., Ltd.|Audit project of server, network equipment, and database comprehensive logs|Based on security considerations, a comprehensive log audit system was researched and deployed in the management information area to centrally store and analyze logs of server hosts, network devices, and databases to detect potential violations and abnormal operating behavior and automatically alert the dangers inreal time. The alarm information is sent to the administrator in a timely manner through short message, email, etc. to provide reference for internal securitymanagement.|||The installation|To keep logs of information assets such as hosts, databases, and network equipment for more than six months tomeet the requirements for information security level protection compliance. The log audit system based on large database technology is used for information security association analysis and information security status assessment toestablish a company information security analysis platform.|
|||||||, commissionin||
|||||||g and on-site c||
|||||||onstruction of s||
|||||||ervers, network||
|||||||equipment and||
|||||||databases com||
|||||||prehensive log||
|||||||audit project in||
|||||||2017 have be||
|||||||en completed. I||
|||||||n the past half||
|||||||a year, the sy||
|||||||stem has been||
|||||||operating stably||
|||||||.||
|16|Guangzhou HuizhouNatural Gas PowerGeneration Co., Ltd.|Training base project development for relay protection and electrical controlsystem|To establish a practical training base forrelay protection, strengthen the relay protection training of production technicians in the power generation industry, and carry out relay protection competitions, etc.|||The design has|To carry out practical exercises and textbook developmentsimultaneously.|
|||||||been complete||
|||||||d, the hardware||
|||||||construction a||
|||||||nd site reconstr||
|||||||uction are in t||
|||||||he construction||
|||||||process.||
|17|Guangzhou HuizhouNatural Gas PowerGeneration Co., Ltd.|Reinforcement project forsecurity protection of power monitoring system||According to the stipulations of the [Re|All the contents in the engineering list of “Security Protection and Reinforcement Projectof Power Monitoring System" have been completed.||The system runs stably, and all service communications in the real-time and non-real-time areas of the schedulingdata network are normal. The company's power monitoring system satisfies the security protection requirements forthe intrusion detection system, operation and maintenancesecurity auditing, longitudinal encryption authentication device, and dispatch data network in the Safety ProtectionTechnical Specifications of South Network Power Monitoring System.|
|||||gulations on the safety Protection of Po||||
|||||wer Monitoring System of the NDRC 2||||
|||||014 No. 14 orde] and the supporting do||||
|||||cuments [Overall safety protection plan||||
|||||for the power monitoring system], an in||||
|||||trusion detection system and a network||||
|||||operation and maintenance auditing syste||||
|||||m should be deployed at the border of||||
|||||the production control region, so as to r||||
|||||ealize the intrusion detection of the busi||||
|||||ness systems and the horizontal and ver||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress||Target and influence||
|||||tical network boundaries of each produc|||||
|||||tion control region, capture the abnorma|||||
|||||l behavior of the network in time, and|||||
|||||analyze potential threats. At the same ti|||||
|||||me, it audits and controls all operationa|||||
|||||l activities of internal and external main|||||
|||||tenance personnel’s logging on network|||||
|||||devices and hosts, and prevents internal|||||
|||||and external operation and maintenance|||||
|||||personnel from performing malicious or|||||
|||||non-malicious destruction of key syste|||||
|||||ms and devices.|||||
|18|Guangzhou HuizhouNatural Gas PowerGeneration Co., Ltd.|Security protection projectfor application system ofmanagement informationlarge region||To deploy an SSL encryption system in||The deploymen|The deployment of load balancing methods such as the basic level units has been completed, which satisfies the requirements for encrypted transmitting of business data.||
|||||the management information region to||t of a load bal|||
|||||encrypt the access of the data transmissi||ancing device|||
|||||on traffic of the business system to ens||has been compl|||
|||||ure the confidentiality, integrity, authenti||eted and the pr|||
|||||city and non-repudiation of the business||oject acceptanc|||
|||||data and meet the compliance requirem||e has been co|||
|||||ents of level protection.||mpleted.|||
|19|Zhanjiang ZhongyueEnergy Co., Ltd.|Energy saving and economic improvement of 2*600MW units|To reduce the coal consumption of thepower supply unit and solve the problem of high energy consumption of the unit.|||The project has||The goal is to achieve a coal consumption of no more th|
|||||||been complete||an 310g/KWh for power supply and a capacity increase u|
|||||||d and performa||p to 630MW for the unit. The transformation will increas|
|||||||nce tests are to||e the core competitiveness of the unit, reduce the emissio|
|||||||be conducted||n of pollutants such as carbon dioxide, sulfur dioxide, an|
|||||||to assess the e||d nitrogen oxides. The energy saving and emission reduct|
|||||||nergy savings.||ion has achieved remarkable results.|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress||Target and influence|
|20|Zhanjiang ZhongyueEnergy Co., Ltd.|Feasibility study of follow-up concentration and curing treatment of wastewater treatment system|Based on the specific water quality characteristics of resin regenerated acid-alkali wastewater and desulfurization wastewater, a variety of wastewater treatment technologies are compared and evaluatedfor the concentration and solidificationtreatment route of resin-regenerated acid-alkaline wastewater and desulfurizationwastewater, and the subsequent evaporative crystallization treatment process forthe wastewater treatment system that ismost suitable for the power plant is derived, and the scheme design and investment estimation are carried out, which is the important basis for the power plant to make investment decisions for therenovation project.|||The pre-bidding|At present, there are many technical routes for concentration and solidification of resin-regenerated acid-alkaline wastewater and desulfurization wastewater. Investment and operating costs for the evaporation and crystallization process are high. According to the specific water quality characteristics of resin regenerated acid and alkali waste water and desulfurization waste water, comparison and selectionwill be made among various waste water treatment technologies to obtain the most suitable evaporative crystallization treatment process for the waste water treatment systemof the power plant. The scheme design and investment estimation will also be carried out, which is the importantbasis for the power plant to make investment decisions for the renovation project.|
|||||||investigation||
|||||||was conducted||
|||||||in May 2017. I||
|||||||t was learned t||
|||||||hat the actual||
|||||||operation time||
|||||||of the relevant||
|||||||technical route||
|||||||was short and||
|||||||the performan||
|||||||ce was low. M||
|||||||ost of them we||
|||||||re experimental||
|||||||demonstration||
|||||||projects. Theref||
|||||||ore, this feasibi||
|||||||lity study proje||
|||||||ct was carried||
|||||||forward to 201||
|||||||8.||
|21|Zhanjiang ZhongyueEnergy Co., Ltd.|Research and optimizationof advanced treatment system process of reclaimedwater reuse||To optimize the aeration biological filter|Process research report and review have beencompleted, and 2 patents arenow being applied.||Focusing on nitrogen removal in biological aerated filter systems, laboratory pilot tests and on-site pilot tests wereconducted, and proposals for modification of nitrificationand denitrification were proposed. In view of the difficulties in on-site construction, the aerobic and denitrifying dominant bacteria are further screened on the basis of the completion of the project and verified on site.|
|||||process parameters, improve the combi||||
|||||ned treatment efficiency of recycled wat||||
|||||er reuse process, further effectively rem||||
|||||ove total nitrogen and COD from the w||||
|||||astewater, and reduce the time cost and||||
|||||capital cost of frequent anti-cleaning a||||
|||||nd replacement of the subsequent doubl||||
|||||e-membrane treatment system.||||
|22|Zhanjiang ZhongyueEnergy Co., Ltd.|Portal system renovationproject||To carry out the data combing of more|Completed||The data, business processes, and forms of the company'sportal system are sorted out, which will facilitate the system's data exchange and business information synchronization, and enable the system to serve the creation of "five-star team" activities.|
|||||than a dozen of application modules s||||
|||||uch as chemical affairs management, rat||||
|||||ionalization proposals, supervision mana||||
|||||gement, work plan management, etc. wh||||
|||||ich have been put into operation, and i||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress||Target and influence|
||||ncrease the construction of team management function module.|||||
|23|Guangdong ProvinceShaoguan YuejiangPower Generation Co.,Ltd.|Maintenance of ORACLEproducts and related application software|To provide daily inspection and maintenance of company database to ensure theintegrity and normal operation of company database data.|||To check and|To ensure the data integrity of the company database, improve the operating efficiency of the database, increase the security of the database.|
|||||||optimize the da||
|||||||tabase every qu||
|||||||arter to optimiz||
|||||||e multiple syst||
|||||||ems that use th||
|||||||e database.||
|24|Zhanjiang Power Co.,Ltd.|Development and implementation of some administrative office management systems||1. To establish unified unstructured data|The system hasbeen put intotrial operationand is undergoing optimizationand adjustment in the later period.||Objective: To establish a company's unstructured data center to optimize unified management of document-based unstructured data. To solve the problem that the current unstructured data management is decentralized and cannot beapplied efficiently.Impact: To realize unified management and access to unstructured data; and realize content retrieval and accurate retrieval of these data, and improve the application capabilities for such data.|
|||||;||||
|||||2. Based on the established unstructured||||
|||||data center, to collate and import the||||
|||||unstructured data that has been generate||||
|||||d in the current business system;||||
|||||3. To transform the current application||||
|||||system to support unstructured data cent||||
|||||ers;||||
|||||4. To optimize current system functions||||
|||||with the support of unstructured data c||||
|||||enter, especially the management and ap||||
|||||plication of unstructured data.||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||
|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose|Project progress||Target and influence|
|25|Zhanjiang Power Co.,Ltd.|Functional optimization and improvement of some business management systems|1. Through the data interface to achievedata communication of the three platforms and automatic connection of business;2. The optimization and integration of the business on the three platforms willreduce the duplication of business processing and improve the effectiveness of the business.||The project has|The functions of some business systems currently such asbudget management and material management are adjusted to realize the automatic connection, integration, and optimization of these businesses with YUDEAN Business Network and the production project management system; based on the integration of the three platform data into thePAM platform, all the business functions of the engineering project management system module in the PAM platform except for the business transaction management are restored, and the impact of the inability to use multiple functions after switching from the production project management business to the production project management system is solved.|
||||||been impleme||
||||||nted.||
||||||The integration||
||||||of the three p||
||||||latform data, th||
||||||e convergence||
||||||of services, an||
||||||d the optimizat||
||||||ion of function||
||||||s have been co||
||||||mpleted, and h||
||||||ave been put i||
||||||nto operation s||
||||||o far. The busi||
||||||ness processing||
||||||is smooth||
|26|Zhanjiang Power Co.,Ltd.|Technology Research andDemonstration Application of Comprehensive Utilization of Urban Reclaimed Water in Large PowerPlants|With the urban reclaimed water (from sewage treatment plants) as the water source and the safe use of reclaimed water in thermal power plant as the researchobjective, the urban sewage reuse technology system developed for thermal power plants can provide technical supportfor water conservation and wastewaterreuse in thermal power plants of southern China, whether urban sewage after deep treatment is used as the water source.||The technical r|The influence on the thermal system is studied when theurban reclaimed water after deep treatment is used as theboiler water supply, so as to ensure the boiler safety; the influence of the reuse of high-concentration brine on the desulfurization system is studied, and the optimum control conditions of high-concentration brine reuse for the desulfurization system is obtained through experiment; the content of dual / echelon use technology of urban reclaimed water in power plant subsystems forms the technologysystem of the urban sewage after deep treatment as the water source of large thermal power plants and the reuse of power plant drainage (wastewater). It achieves water saving and wastewater recycling of power plants.|
||||||esearch on the||
||||||comprehensive||
||||||utilization of ur||
||||||ban reclaimed||
||||||water in large-s||
||||||cale power pla||
||||||nts has been c||
||||||ompleted and f||
||||||ully applied in||
||||||Zhanjiang Po||
||||||wer Co., Ltd.,||
||||||thus achieving||
||||||good effects in||
||||||use.||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||
|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress|Target and influence|
|27|Zhanjiang Power Co.,Ltd.|Instant Messaging Platform Transformation||A unified instant messaging push platfor|Completed|The platform realizes the integration with several currentcore business systems and the push of instant messages on these platforms, which include: information portal platform, PAM platform, SIS platform and various existing mobile phone SMS notification businesses switching to the new platform. The information portal is highly integrated, including unified use of the organization and personnel data of the current information portal, thus avoiding multipledata sources; and achieving flexible authorization management.|
|||||m is established to achieve the push of|||
|||||instant messages of the information sys|||
|||||tem to relevant personnel by means of|||
|||||SMS, WeChat and mobile APP, and sim|||
|||||ultaneously the provides a standard servi|||
|||||ce interface for new applications so that|||
|||||the newly developed system in the fut|||
|||||ure can push instant messages of the bu|||
|||||siness system through the standard call|||
|||||on the platform.|||
|28|Zhanjiang Power Co.,Ltd.|WAN interconnection communication link costs||By leasing the communication link of t|Completed|The data communication between the company and the group, government departments and other companies, and the mobile office and external data collection of employeesin the company can be achieved at a low cost, thus reducing the one-time investment and maintenance costs of this part of communication link.|
|||||he operator, it achieves the data commu|||
|||||nication between the company and the|||
|||||group, government departments and othe|||
|||||r companies, and the mobile office and|||
|||||external data collection of employees i|||
|||||n the company.|||
|29|Zhanjiang Power Co.,Ltd.|WAN Interconnection Communication Link Leaseand IT Service Lease Costs||By leasing the communication link from|Completed|The data communication between the company and the group, government departments and other companies, and the mobile office and external data collection of employeesin the company can be achieved at a low cost, thus reducing the one-time investment and maintenance costs of this part of communication link.|
|||||the operator, it achieves the data com|||
|||||munication between the company and th|||
|||||e group, government departments, and o|||
|||||ther companies, as well as mobile offic|||
|||||e and external data collection of the co|||
|||||mpany’s employees.|||
|30|Zhanjiang Power Co.,Ltd.|Application Developmentand Implementation Basedon Mobile Intelligent Terminal||Based on the data and service platform|Completed|It can process the most of application businesses and obtain the required data on the mobile intelligent terminal, thus greatly improving work efficiency.|
|||||of the current information system, vario|||
|||||us application systems mainly including|||
|||||desktop terminals are extended to mobil|||
|||||e smart terminals. The various functions|||
|||||(business processing function, data disp|||
|||||lay function, etc.) of the existing main|||
|||||application systems will be implemented|||
|||||on the APP of mobile smart terminal t|||
|||||o realize mobile office work and increa|||
|||||se work efficiency.|||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||
|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose|Project progress|Target and influence||
|31|Zhanjiang Power Co.,Ltd.|Application Research of Entire-Process Fuel Application Chain Optimization System|Through the application research of theentire process of the fuel application chain optimization system, this project aims to achieve the energy savings and efficiency.|The preliminaryresearch is conducted, and the successful bidder for the research projectof the entire process of the fuel chain application optimization system is implemented.||(1) Operation and function optimization are conducted to|
|||||||the existing coal yard dispatch management system. (2) A|
|||||||ccuracy check of the raw coal bunker level meter provide|
|||||||s reliable support for the dynamic monitoring of the raw|
|||||||coal bunker. (3) The real-time dynamic monitoring and m|
|||||||anagement function raw coal bunkers is added based on t|
|||||||he existing coal yard dispatch management system. The s|
|||||||ystem automatically records the real-time coal mixing and|
|||||||burning conditions and automatically calculate, the optim|
|||||||al mix ratio under the current conditions, thus achieving t|
|||||||he operational optimization guidance. (4) The historical op|
|||||||erating condition data and basic data are analyzed to achi|
|||||||eve the optimization of mix-burning optimization, LCOE|
|||||||optimization, stock structure optimization and purchase str|
|||||||ategy optimization, as well as the targets of energy savin|
|||||||g, consumption reduction and efficiency increase. (5) Thro|
|||||||ugh the analysis of relevant coalfield data, the statistical|
|||||||analysis of various input, consumption, storage, and relate|
|||||||d economic indicators can be achieved to assist decision-|
|||||||making for each post.|
|32|Zhanjiang Power Co.,Ltd.|Supervisory Information System (SIS) Mirror ServerPlatform Construction|1. To build a mirror database system for real-time databases to improve the reliability and security of real-time databases;2. With the support of the mirror database system, the network structure of theSIS is optimized so as to improve thesecurity of the system, and in particular to improve the security of the production control system.|The project hasbeen completed and the system has been online and put into operation.||Through the transformation and optimization of original S|
|||||||IS system architecture, the system security performance is|
|||||||improved. The system load is balanced by configuring th|
|||||||e real-time database mirror server, thus improving the ope|
|||||||ration speed and available performance of the system. Thr|
|||||||ough the addition of new servers and storage spaces, the|
|||||||system increases the storage of real-time/ historical data a|
|||||||nd extend storage cycle of the production process data. T|
|||||||his solves the problem of inadequate analysis of historical|
|||||||data of units and equipment due to insufficient data stor|
|||||||age cycles.|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|No|Project company name||Project name|Purpose|Project progress||Target and influence||
|33|Zhanjiang Power Co.,Ltd.||Deepening Application ofSupervisory InformationSystem (SIS)|1. To establish a highly integrated equipment lifecycle data platform that integrates asset (equipment) management data,asset (equipment) maintenance and repair management process data, and material management and other operational management data;2. To utilize the data mining and othermethods and technologies of big data applications for establishing advanced applications of device management, such asdevice status tracking and degradationanalysis and fault alarm of equipment fault etc.||1. The data int|A big data platform is established for the entire life cycleof the equipment, and the big data technology is utilizedto improve the status detecting and tracking ability of unit (equipment), thus realizing automatic early warning ofequipment status, improving the monitoring ability of equipment and providing data support for the repair decisionof the equipment.||
|||||||egration has be|||
|||||||en completed a|||
|||||||nd the data pla|||
|||||||tform has been|||
|||||||established;|||
|||||||2. The develop|||
|||||||ment of early|||
|||||||warning of faul|||
|||||||ts and other fu|||
|||||||nctions has bee|||
|||||||n completed;|||
|||||||3. The integrati|||
|||||||on of SIS and|||
|||||||EAM applicatio|||
|||||||n functions of|||
|||||||has been basica|||
|||||||lly completed a|||
|||||||nd they are bei|||
|||||||ng tested and|||
|||||||optimized.|||
|34||Guangdong Red Bay|2017 Software Legalization|To guarantee the use of genuine software by the company|Completed||Complying with national laws and regulations||
|||Power Generation Co.,|||||||
|||Ltd.|||||||
|35|Guangdong Red BayPower Generation Co.,Ltd.||3# Unit Boiler (660MWUltra Supercritical) Combustion Regulation and Optimization|The optimal operating conditions of boiler is sought through experiments, so asto improve the running safe and economic performance of the boiler, exploit the potential for energy saving and provide the basic data for the operation regulation.|Completed|||According to the “Notice of the General Office of the St|
|||||||||ate Council on Issuing the Program of Action for the En|
|||||||||ergy Development Strategy (2014-2020)” (No. 31 [2014] I|
|||||||||ssued by the General Office the State Council), this proje|
|||||||||ct is formulated to accelerate the energy production and c|
|||||||||onsumption revolution and further improve the efficient an|
|||||||||d clean development level of coal-fired power; it can solv|
|||||||||e the problem of low boiler efficiency (0.5% to 0.8% lo|
|||||||||wer than the design value; meanwhile, the serious high-te|
|||||||||mperature corrosion of cold side of the water-cooled wall,|
|||||||||unideal NOX emission).|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No|Project company name|Project name||Purpose|Project progress||Target and influence|
|36|Guangdong Red BayPower Generation Co.,Ltd.|Establishment and Application of Enterprise Management System Based on Risk Prevention and Control||To further systematize, standardize andscientize the risk management that hasbeen dispersed in safety production, financial management, legal affairs, strategicmanagement, infrastructure management, business management and environmental protection, so as to achieve the goalsof meeting external regulatory requirements and enhancing risk prevention andcontrol.||The project has|An organically integrated system covering all regulatory requirements, superior management and company management can meet external regulatory requirements and enhancerisk prevention and control.|
|||||||been complete||
|||||||d. The rights, f||
|||||||lows, risks and||
|||||||execution basi||
|||||||s have been sy||
|||||||stematically opt||
|||||||imized for 97||
|||||||core business p||
|||||||rocesses of the||
|||||||company.||
|37|Guangdong Red BayPower Generation Co.,Ltd.||Standard Implementation a|To establish a management system for integration of informatization and industrialization|Completed||A management system for integration of informatization and industrialization is established in response to the staterequirements, to build or maintain the new capabilities ofenterprises with core competitiveness|
||||nd Certification Consultin|||||
||||g of the Management Sys|||||
||||tem for Integration of Inf|||||
||||ormatization and Industrial|||||
||||ization|||||
|38|Guangdong Red BayPower Generation Co.,Ltd.|Valve Management and Energy Saving Optimizationof 3# Unit Steam Turbine||The sequence valve and mutual switching functions are added to the original DEH compound valve steam distributionmode of 3# unit. The optimal main steam pressure bivariate function of mediumand low loads is set by the sliding pressure optimization test;The response of AGC and primary frequency modulation is optimized by the variable flow control of condensate water.||The project has|The steam distribution mode and DEH logic are changedto ensure the safe and economical continuous operation without affecting FCB function of the unit.New steam distribution mode can be implemented withinthe load range from 230MW to 660MW, ensure the safeand economical operation of the steam turbine, and meetthe peak load and frequency regulation requirements of the unit. The original steam distribution mode is retained, and it can switch back to the original control mode freely.In the event of fault, the new steam distribution mode can also meet the unit shutdown requirements.After the implementation of this project, the standard coalconsumption for power generation decreases by 1.5g/kWh and above (40% to 75% load conditions). The commissioning hasn’t been finished, and the energy-saving effectsare to be evaluated.|
|||||||completed the||
|||||||valve flow ch||
|||||||aracteristics test||
|||||||, logic configur||
|||||||ation and loadi||
|||||||ng, and sequen||
|||||||ce valve switch||
|||||||ing test. At pre||
|||||||sent, the slidin||
|||||||g pressure opti||
|||||||mization test a||
|||||||nd the condens||
|||||||ate flow contro||
|||||||l commissionin||
|||||||g are to be per||
|||||||formed.||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||
|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose|Project progress|Target and influence||
|39|Guangdong Red BayPower Generation Co.,Ltd.|HCM System Data Reconstruction Project|To rebuild the HCM System and maintain data integrity|Completed|The project development data import tool complements key data of HCM through other data sources (including daily static data of business personnel, Discover system resultdata, BIEE result data, and attendance system data). Finally it restores the normal operation of the HCM system.||
|40|Guangdong Red BayPower Generation Co.,Ltd.|Deep Peak Load Regulating Operation Strategy andEnergy Saving Optimization of 660MW Ultra Supercritical Unit|The sequence valve and mutual switching functions are added to the original DEH compound valve steam distributionmode of 4# unit. The optimal main steam pressure bivariate function of mediumand low loads is set by the sliding pressure optimization test;The response of AGC and primary frequency modulation is optimized by the variable flow control of condensate water.The minimum flow valve control function of the steam pump is set as automatic control of minimum flow valve.|Completed||The steam distribution mode and DEH logic are changed|
|||||||to ensure the safe and economical continuous operation w|
|||||||ithout affecting FCB function of the unit.|
|||||||New steam distribution mode can be implemented within|
|||||||the load range from 230MW to 660MW, ensure the safe|
|||||||and economical operation of the steam turbine, and meet|
|||||||the peak load and frequency regulation requirements of th|
|||||||e unit. The original steam distribution mode is retained, a|
|||||||nd it can switch back to the original control mode freely.|
|||||||In the event of fault, the new steam distribution mode c|
|||||||an also meet the unit shutdown requirements.|
|||||||After the implementation of this project, the standard coal|
|||||||consumption for power generation decreases by 1.5g/kW|
|||||||h and above (40% to 75% load conditions). Based on the|
|||||||comprehensive analysis, after optimization of the steam d|
|||||||istribution of 4# steam turbine, the target value is achieve|
|||||||d when the heat loss rate at medium and low load is red|
|||||||uced by more than 46.5kJ/(kW•h) and the equivalent coal|
|||||||consumption is reduced by 1.7g/(kW•h).|
|41|Guangdong Red BayPower Generation Co.,Ltd.|2017 Core Network Equipment Reliability Improvement|To optimize and improve the company’smajor network equipment and ensure the reliability and stability of the network backbone|Completed||The backbone network and key network devices achieve t|
|||||||he device stacking and improve reliability and stability. T|
|||||||he performance bottlenecks shall be eliminated to avoid t|
|||||||he normal production management due to equipment probl|
|||||||ems.|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No|Project company name|Project name||Purpose||Project progress|Target and influence|
|42|Guangdong Red BayPower Generation Co.,Ltd.|MAXIMO-based FinancialBusiness Integration System Project|||To achieve the seamless connection bet|Completed|It achieves the seamless connection between the current production management system and the financial system ERP, data sharing and closed-loop business management, and integrated management of finance and services|
||||||ween the current production managemen|||
||||||t system and the financial system ERP,|||
||||||data sharing and closed-loop business m|||
||||||anagement, and integrated management|||
||||||of finance and services, improve the dat|||
||||||a accuracy and effectiveness, increase w|||
||||||ork efficiency to reduce repeated data e|||
||||||ntry, and realize the effective collection|||
||||||and sharing transparency of information.|||
|43|Guangdong Red BayPower Generation Co.,Ltd.|Reliability-based All-around Equipment Management|||The current power system reform, fierce|The entire project has completed the safety evaluation, correction and improvement, and the establishment and use of the standard operation plan database.|1. Through the improvement of equipment status management, SIS real-time monitoring and spot inspection (including data alarms, historical curves, real-time curves, etc.),and full-time spot and patrol inspection of site equipment,it can achieve the all-around management of all equipment. 2. Then, the RCM (reliability-centered maintenance) analysis results and the monthly analysis of equipment are integrated. It is further converted to the elimination of defects, preventive maintenance, and other maintenance workto establish the standard operation plan database, so thatoperators can now implement standards and avoid missing and omissions. 3. The contractors are controlled from four aspects: personnel management (attendance, change, etc.), inspection and evaluation, safety quality management,and monthly contractor evaluation. The above content is transferred to the production management information system and ensures implementation by information means. Theequipment reliability shall be improved to achieve all-around management of equipment.|
||||||competition of the power generation m|||
||||||arket, implementation of West-to-East po|||
||||||wer transmission and electricity price bi|||
||||||dding lead to a severe situation that the|||
||||||available hours of power plant units in|||
||||||Guangdong are generally unsatisfactory,|||
||||||and meanwhile higher requirements are|||
||||||placed on equipment reliability. Howev|||
||||||er, due to inadequate skills of equipmen|||
||||||t management and maintenance personne|||
||||||l and insufficient management of mainte|||
||||||nance teams of power plants, the numb|||
||||||er of unplanned outage of units increase|||
||||||s significantly in recent years and the e|||
||||||quipment stability drops drastically. The|||
||||||original equipment monitoring model a|||
||||||nd the contractor management are too si|||
||||||mple to be able to achieve all-round m|||
||||||anagement of equipment and contractors.|||
||||||The all-around equipment management|||
||||||needs to be achieved.|||
|44|Guangdong Red BayPower Generation Co.,Ltd.||Development of the Electr|To realize the online learning of 25 Key Requirements for the Prevention of Electricity Production Accidents||Completed|It achieves the goal of online learning of 25 Key Requirements for the Prevention of Electricity Production Accidents by all units of the Group|
||||onic Courseware of 25 K|||||
||||ey Requirements for the|||||
||||Prevention of Electricity|||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose||Project progress||Target and influence||
|||Production Accidents|||||||
|45|Guangdong Red BayPower Generation Co.,Ltd.|(Biee and HCM) Data Security|To optimize and perfect the HCM system and interface with the intelligent analysis system||Completed|||According to the company’s management requirements, th|
|||||||||e HCM system is optimized and improved to develop ne|
|||||||||w business processes and modules, and the interface with|
|||||||||the intelligent analysis system is updated.|
|46|Guangdong YudeanZhanjiang Wind PowerGeneration Co., Ltd.|Intelligent Status Monitoring and Operation and Maintenance Scheduling System of Large-scale WindFarms|To reduce the maintenance time of wind turbine generators, raise the availability of wind farms, and provide wind power operators with the optimized operation and intelligent management of windfarms, few-attended or unattended management, and intensive management of equipment and operation and maintenancepersonnel; help operators to achieve intelligent, efficient and low-cost operations|||The project has|The project has completed researches of the uniform monitoring of real-time status and fault prediction technologies;intelligent remote status monitoring and health evaluationtechnologies of wind farms; intelligent dispatching modelfor operation and maintenance repair resources of wind farms; development and demonstration of intelligent statusmonitoring and operation and maintenance scheduling system of large-scale wind farms||
|||||||been reviewed|||
|||||||and approved|||
|||||||by the expert t|||
|||||||eam on April|||
|||||||14, 2018, and|||
|||||||applied in both|||
|||||||Yangqian Win|||
|||||||d Farm and Yo|||
|||||||ngshi Wind Far|||
|||||||m of Zhanjiang|||
|||||||Wind Power|||
|||||||Co., Ltd.|||
|47|Guangdong YudeanZhanjiang Wind PowerGeneration Co., Ltd.|Wind Power ManagementStandards of the Group||The standards compiled by the wind po|Completed||The “Uniform Production Management System for WindPower Generation Enterprises” is established by the Groupto provide templates for other wind power companies inthe system to replicate and promote||
|||||wer companies under the Group are not|||||
|||||uniform, with different depths and cop|||||
|||||es. The project aims to reduce repeat a|||||
|||||nd the workload of each wind power c|||||
|||||ompany for revising standards, better co|||||
|||||ncentrate technical strength and efforts f|||||
|||||or standard revision and provide manage|||||
|||||ment basis for new wind power project|||||
|||||s.|||||
|48|Guangdong YudeanZhanjiang Wind PowerGeneration Co., Ltd.|Patent Application AgentFee|To improve production equipment, enhance equipment reliability, reduce failurerate, and protect intellectual property rights of the company.|||Two patent cert|The national patent authorization has been acquired to protect intellectual property rights.||
|||||||ificates have be|||
|||||||en obtained an|||
|||||||d the others ar|||
|||||||e accepted and|||
|||||||to be approve|||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||
|-|-|-|-|-|-|-|
|No|Project company name|Project name|Purpose|Project progress||Target and influence|
|||||d.|||
|49|Maoming ZhennengThermoelectric co.,Ltd.|Patent Application AgentFee|To improve production equipment, enhance equipment reliability, reduce failurerate, and protect intellectual property rights of the company.||Two patent cert|The national patent authorization has been acquired to protect intellectual property rights.|
||||||ificates have be||
||||||en obtained an||
||||||d the others ar||
||||||e accepted and||
||||||to be approve||
||||||d.||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report Situation of Research and Development Input by the Company
|||||
|-|-|-|-|
||2017|2016|Increase/Decrease(%)|
|Number of Research and Development persons (persons)|357|341|4.69%|
|Proportion of Research and Development persons|5.13%|5.16%|-0.03%|
|Amount of Research and Development Investment ( Yuan)|27,896,103|20,591,025|35.48%|
|Proportion of Research and Development Investment of Operation Revenue|0.10%|0.09%|0.01%|
|Amount of Research and Development Investment Capitalization ( Yuan)|10,915,230|5,228,583|108.76%|
|Proportion of Capitalization Research and Development Investment of||||
||39.13%|25.39%|13.74%|
|Research and Development Investment||||

The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the Business Income Year on Year
□ Applicable√ Not applicable
Explanation of the Reason for Substantial Changes in the Research and DevelopmentInput’s Capitalization Rate and Its Reasonableness
□ Applicable√ Not applicable
5.Cash Flow
In RMB
|||||
|-|-|-|-|
|Items|2017|2016|Increase/Decrease(%)|
|Subtotal of cash inflow received|31,168,841,936|25,227,420,875||
||||23.55%|
|from operation activities||||
|Subtotal of cash outflow|27,492,807,433|16,522,645,057||
|received from operation|||66.39%|
|activities||||
|Net cash flow arising from|3,676,034,503|8,704,775,818||
||||-57.77%|
|operating activities||||
|Subtotal of cash inflow received|272,155,161|534,734,411||
||||-49.10%|
|from investing activities||||
|Subtotal of cash outflow for|3,555,163,705|3,315,903,498||
||||7.22%|
|investment activities||||
|Net cash flow arising from|-3,283,008,544|-2,781,169,087||
||||18.04%|
|investment activities||||
|Subtotal cash inflow received|14,959,157,340|12,506,909,008||
||||19.61%|
|from financing activities||||
|Subtotal cash outflow for|15,540,475,704|18,473,048,814||
||||-15.87%|
|financing activities||||
|Net cash flow arising from|-581,318,364|-5,966,139,806||
||||-90.26%|
|financing activities||||
|Net increase in cash and cash|-188,293,160|-42,533,075||
||||342.70%|
|equivalents||||

Notes to the year-on-year change of the relevant data
√Applicable□ Not applicable
1.The cash outflow from operating activities increased by66.39% ,The mainly due to the increase in coal prices and the shortening of the period for the payable payment to coal purchase during the period.
2. Net cash flow arising from operating activities decreased by57.77% ,The Mainly due to the increase in coal prices and the shortening of the period for the payable payment to coal purchase, thus led to an increase in cash
outflow.
3. The cash inflow received from investing activities decreased by 49,10, The Mainly due to the decrease in the
dividend distribution from joint ventures and associated companies.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report 4. Net cash flow arising from financing activities decreased by90.26%, the Mainly due to the repayment of ultra-short-term financing bonds during the current period.
5. Net increase in cash and cash equivalents decreased by342.70% ,the Mainly due to the decrease in the net cash flow from operating activities and the increase in net cash flows from investing activities during the reporting period.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year√Applicable□ Not applicable
The main impact of non-cash outflow of assets, depreciation and amortization, interest expense of non-business activities.
Ⅲ.Analysis of Non-core Business
□Applicable√Not applicable
Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of 2017||End of 2016||||
||||||Proportion|Notes to the|
|||Proportion in the||Proportion in the|||
||Amount||Amount||increase/decrease|significant change|
|||total assets(%)||total assets(%)|||
|Monetary fund|4,996,580,490|7.04%|5,184,873,650|7.34%|-0.30%||
|Accounts|2,826,237,259||2,776,061,909||||
|||3.98%||3.93%|0.05%||
|receivable|||||||
|Inventories|1,527,634,773|2.15%|1,513,153,241|2.14%|0.01%||
|Investment real|8,296,639||8,932,237||||
|||0.01%||0.01%|0 %||
|estate|||||||
|Long-term equity|5,801,006,412||5,432,637,750||||
|||8.17%||7.69%|0.48%||
|investment|||||||
|Fixed assets|40,996,206,316|57.74%|41,814,685,521|59.16%|-1.42%||
|Construction in|8,467,687,340||6,343,293,763||||
|||11.93%||8.98%|2.95%||
|process|||||||
|Short-term loans|9,270,000,000|13.05%|5,758,860,000|8.15%|4.90%||
|Long-term loans|19,465,723,869|27.41%|19,888,172,037|28.14%|-0.73%||

2.Asset and Liabilities Measured by Fair Value
√ Applicable□Not applicable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Gain/loss on|||||Amount at yearend|
||||Cumulative fair|Impairment|Purchased|Sold amount||
|||fair value||||||
||Amount at year||value change|provisions in|amount in the|in the||
|Item||change in the||||||
||beginning||recorded into|the reporting|reporting|reporting||
|||reporting||||||
||||equity|period|period|period||
|||period||||||
|Financial assets||||||||
|3.|||||||408,992,985|
|valiable-for-sal||||||||
||419,736,308|-10,743,323|153,664,369|||||
|e financial||||||||
|assets||||||||
|Total|419,736,308|-10,743,323|153,664,369||||408,992,985|
|Financial|||||||0|
||0|||||||
|Liability||||||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes√ No
3. Restricted asset rights as of the end of this Reporting Period
(1) Asset mortgage status
As at December 31, 2017, the Company has the accounts receivable with a carrying amount of RMB 402,847,793 (December 31, 2016: RMB 316,986,314), which, together with online sales charging right of several power generation subsidiaries, was pledged to the bank to obtain long-term borrowings of RMB 2,698,978,707,
including: the long-term borrowings due within one year amounted to RMB 209,579,575. The borrowings are detailed as follows:
As at December 31, 2017, the long-term pledge borrowings of the following subsidiaries were based on their power fee charging rights and accounts receivable as pledges:
December 31,2017 December 31, 2016 Yuejiang Power
Generation (i) 2,276,504,889 2,223,720,000 Leizhou Wind Power (ii) 188,420,594 - Zhanjiang Wind Power (iii) 156,465,000 173,985,000 Xuwen Wind Power (iv) 77,588,224 139,591,396 2,698,978,707 2,537,296,396 As at December 31, 2017, the long-term pledge borrowings of the following subsidiaries due within
one year were based on their power fee charging rights and accounts receivable as pledges:
December 31,2017 December 31, 2016 Yuejiang Power Generation 180,897,292 105,353,210 Zhanjiang Wind Power 17,520,000 17,520,000 Xuwen Wind Power 10,062,668 61,323,080 Leizhou Wind Power 1,099,615 - 209,579,575 184,196,290 (2) Asset mortgage status
As at December 31, 2017, the company has the power generation equipment with a carrying amount of RMB 757,878,678 (original value of RMB 2,562,570,238) (December 31, 2016: carrying amount RMB 816,058,138 and original value RMB 2,562,570,238), which was mortgaged for a long-term borrowing of RMB 85,000,000 (December 31, 2016: RMB 226,400,000). The borrowing is detailed as follows:
The long-term borrowing of Shenzhen Guangqian Power Co., Ltd. (“Guangqian Power”) is RMB 85,000,000 (December 31, 2016: RMB 226,400,000) with an interest rate of4.41% to4.86% (December 31, 2016:4.41% to5.09%).
Guangdong Electric Power Development Co., Ltd. 2017Annual Report V.Investment situation
1. General
√ Applicable□ Not applicable
||||
|-|-|-|
|Investment Amount in 2017(RMB)|Investment Amount in 2016(RMB)|Change rate|
|585,140,000|857,880,000|-31.79%|

 2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable□ Not applicable
Guangdong Electric Power Development Co., Ltd. 2017Annual Report In RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Whether|||
|||||||||||reven|||||
|Name of the||||Share|Capita||||||Gain or Less|to|Date of||
||Main|Investm|Investment||||Investment|Produc|Progress up to|ue|||||
|Company||||Proportion|l|Partner|||||or the Current|Involve|Disclosure(|Disclosure Index|
||Business|ent Way|Amount||||Horizon|t Type|Balance Sheet Date|projec|||||
|Invested||||%|Source||||||Investment|in|Note 5)||
|||||||||||tion|||||
|||||||||||||Lawsuit|||
||||||||||The total|||||Announcement|
||||||||||construction||||||
|Guangdong|||||||||progress for the|||||No.:2012-45)Published|
|Yudean Bohe|Thermal|Capital|||Ownfu|||Electri|wharf project||||October 31,|in|
|Coal-fired|power,logis||244,000,000|100 %||No|Long-term|c|maritime work is||-113,050,635|No|||
|Power Co.,|tics|increase|||nds|||power|completed about||||2012|China Securities Daily,|
|Ltd|||||||||80.69% and the|||||Securities Times and|
||||||||||power plant project|||||http//.www.cninfo.com|
||||||||||is not approved|||||.cn|
||||||||||On October 30,||||||
||||||||||2017, it officially||||||
||||||||||obtained the||||||
||||||||||Approval by the|||||Announcement|
|||||||Guangdong|||China Insurance||||||
|Guangdong|||||||||Regulatory|||||No.:2015-52)Published|
|||||||Yudean|||||||||
|Yudean|Property|Newlyes|||Ownfu|Group||Insura|Commission and the||||December|inChina Securities Daily,|
|Property||tablishe|147,000,000|49 %|||Long-term||"Insurance||-1,678,170|No|||
||Insurance||||nds|（shareholdi||nce|||||12,2015||
|Insurance Co.,Ltd.||d||||ng ratio：|||Institution LegalPerson License",|||||Securities Times and|
|||||||51%）|||and completed the|||||http//.www.cninfo.com|
||||||||||industrial and|||||.cn|
||||||||||commercial||||||
||||||||||registration on||||||
||||||||||November 10, 2017.||||||
|||||||||||||||Announcement|
||||||||||During the reporting||||||
|Tongdao|||||||||period, the Tongdao|||||No.:2016-45)Published|
|Yuexin Wind|Wind|Newlyes|||Ownfu|||Electri|wind power project||||October 29,|in|
|Power|Power|tablishe|10,000,000|100 %||No|Long-term|c|was in the upfront||-18,585|No|||
|Generation|generation|d|||nds|||power|stage of work,||||2016|China Securities Daily,|
|Co., Ltd.|||||||||not-yet started the|||||Securities Times and|
||||||||||construction.|||||http//.www.cninfo.com|
|||||||||||||||.cn|
|GuangdongHu||||||CNOOC|||89.7% of||||||
|||||||||Electri||||||Announcement|
|izhou Natural|Thermal|Capital|95,090,000|67 %|Ownfu|Refco Group|Long-term|c|construction|||No|April 26,||
|Gas|power|increase|||nds|Ltd|||engineering was||||2013|No.:2013-36)Published|
|||||||||power|||||||
|Thermoelectri||||||（Sharehold|||completed and||||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|c Co., Ltd.||||||ing ratio：|||25.8% of|||||in|
|||||||33%）|||installation||||||
|||||||||||||||China Securities Daily,|
||||||||||engineering was||||||
|||||||||||||||Securities Times and|
||||||||||completed.||||||
|||||||||||||||http//.www.cninfo.com|
|||||||||||||||.cn|
|||||||||||||||Announcement|
|||||||Guangdong|||||||||
|GuangdongYu||||||GuokunNew Energy||||||||No.:2017-14)Published|
||||||||||The preparation||||||
|dean HuaduNatural Gas|Thermal|Capital|89,050,000|65 %|Ownfu|Co., Ltd.（|Long-term c|Electri|work is underway||7,013,969.95|No|April 26,|in|
|Thermoelectri|power|increase|||nds|Shareholdin||power|before the start of||||2017|China Securities Daily,|
|c Co., Ltd.||||||g ratio：|||the project.|||||Securities Times and|
|||||||||||||||http//.www.cninfo.com|
|||||||35%）|||||||||
|||||||||||||||.cn|
||||||||||||-107,733,420.|--|||
|合计|--|--|585,140,000|--|--|--|--|--|--|0|||--|--|
||||||||||||05||||

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
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Securitycode||||Book value|||Purchase|Sale||Book value|||
|||||Mode of||||||Gain/loss||||
|||Stock|||balance at the|Changes in fair|Cumulative fair|amount|amount||balance at the|||
|Security|||Initial|accounting||||||of the||Accounting|Source of the|
|||Abbreviati|||beginning of|value of the|value changes in|in the|in the||end of the|||
|category|||investment cost|measurem||||||reporting||items|shares|
|||on:|||the reporting|this period|equity|this|this||reporting|||
|||||ent||||||period||||
||||||period|||period|period||period|||
|Domestic||||Fair value||||||||Financial assets||
|and foreign|600642|Shenergy|235,837,988|measurem|325,974,308|-555,323|89,580,997||||325,418,985|available for|Own-Funds|
|stocks||||ent||||||||sales||
|Domestic|000027|||Fair value||||||||Financial assets||
|||Shenzhen||||||||||||
|and foreign|||15,890,628|measurem|86,562,000|-10,206,000|60,465,372||||76,356,000|available for|Own-Funds|
|||Energy||||||||||||
|stocks||||ent||||||||sales||
|Domestic||||Fair value||||||||Financial assets||
|and foreign|831039|NEEQ|3,600,000|measurem|7,200,000|18,000|3,618,000||||7,218,000|available for|Own-Funds|
|stocks||||ent||||||||sales||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Total|255,328,616|--|419,736,308|-10,743,323|153,664,369|0|0|0|408,992,985|--|--|
|Disclosure date for the notice of||||||||||||
|approval by the Board (If any)||||||||||||
|Disclosure date for the notice of||||||||||||
|approval by shareholders’ Meeting||||||||||||
|(If any)||||||||||||

（2）Investment in Derivatives
□ Applicable√ Not applicable
Nil
5.Application of the raised capital
□ Applicable√ Not applicable
Nil
Ⅵ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable√ Not applicable
Nil
2.Situation of Substantial Stake Sale
□ Applicable√ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable□ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over10% net profit influencing to the Company
Guangdong Electric Power Development Co., Ltd. 2017Annual Report In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Registered||||Operating||
|Company Name|Company type|Sectors engaged in||Total assets|Net assets|Turnover||Net Profit|
||||capital||||profit||
||Sharing||||||||
|Shanxi Yudean Energy Co., Ltd.||Coal Investment|1,000,000,000|3,264,544,314|3,041,103,114|655,693|565,118,529|565,119,636|
||company||||||||
|Shenzhen Guangqian Electric Power Co.,||Power generation and power station|||||||
||Subsidiary||1,030,292,500|2,094,040,391|1,523,253,523|1,607,356,669|322,131,537|241,451,857|
|Ltd.||construction.|||||||
|Guangdong Huizhou Pinghai Power||Power generation and power station|||||||
||Subsidiary||1,370,000,000|5,884,492,642|2,034,467,001|3,392,086,464|598,459,639|436,668,322|
|Generation Plant Co., Ltd.||construction.|||||||
|Guangdong Red Bay Power Generation Co.,||Power generation and power station|||||||
||Subsidiary||2,749,750,000|7,175,730,378|3,326,497,779|3,916,842,705|318,848,687|238,262,334|
|Ltd.||construction.|||||||
|Guangdong Yudean Jinghai Power||Power generation and power station|||||||
||Subsidiary||2,919,272,000|9,739,834,483|3,600,642,695|4,811,801,719|304,467,114|233,130,409|
|Generation Co., Ltd.||construction.|||||||
|Guangdong Huizhou Natural gas Power||Power generation and power station|||||||
||Subsidiary||1,301,296,300|3,399,189,354|1,751,382,646|1,727,670,061|277,973,477|208,488,731|
|Generation Co., Ltd.||construction.|||||||
|||Power generation and power station|||||||
|Zhanjiang Electric Power Co., Ltd.|Subsidiary||2,875,440,000|4,409,944,758|4,042,578,246|1,944,172,914|220,034,028|163,992,141|
|||construction.|||||||
|Guangdong Guohua Taishan Power|Sharing||||||||
|||Power generation and power station|4,669,500,000|11,631,669,933|7,440,528,785|6,858,639,385|809,960,363|596,418,401|
|Generation Co., Ltd.|Company||||||||
||Sharing||||||||
|Guangdong Power Industry Fuel Company||Coal Trade|630,000,000|3,094,450,048|1,045,352,463|20,866,250,505|208,402,101|167,764,414|
||Company||||||||
||Sharing||||||||
|Guangdong Yudean Finance Co., Ltd.||financial service|2,000,000,000|21,783,668,978|2,749,504,811|639,369,624|373,317,797|301,317,539|
||Company||||||||
|Guangdong Shaoguan Yuejiang Power||Power generation and power station|||||||
||Subsidiary||1,400,000,000|7,032,061,448|780,953,688|2,570,511,101|-219,480,121|-221,724,597|
|Generation Co., Ltd.||construction.|||||||
|||Power generation and power station|||||||
|Zhanjiang Zhongyue Energy Co., Ltd.|Subsidiary||1,454,300,000|4,946,405,691|1,037,440,727|1,289,553,459|-251,236,030|-222,550,671|
|||construction.|||||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report Acquirement and disposal of subsidiaries in the Reporting period
||||
|-|-|-|
||Way of acquiring and disposing of||
|||Impact on the whole producing operation|
|Company name|subsidiary corporations within the||
|||and performance|
||reporting period||
|||During the reporting period, the Hunan|
|Tongdao Yuexin Wind Power Generation Co.,||Tongdao wind power project was in the|
||Invested||
|Ltd.||upfront stage of work, not-yet started the|
|||construction.|
|||During the reporting period, the project|
|Guangxi Wuxuan Yuefeng New Energy Co.,|||
||Invested|was in the upfront stage of work, not-yet|
|Ltd.( Indirect subsidiary)|||
|||started the construction.|
|||During the reporting period, the project|
|Hunan Xupu Yuefeng New Energy Co.,|||
||Invested|was in the upfront stage of work, not-yet|
|Ltd.( Indirect subsidiary)|||
|||started the construction.|
|Huizhou Pingdian Energy Co., Ltd.(Indirect||No actual operation has been carried out|
||Invested||
|Subsidiary)||yet in reporting period.|

Notes
1. During the reporting period, mainly due to the rise in coal price and the impact of market electricity price-bidding, the profits of most of the coal-fired power plants subordinated to the Company decreased significantly year-on-year, with some subsidiaries such as Yuejiang Company, Zhanjiang Zhongyue, Zhenneng Company and Dapu Company have appeared the loss; the profit of the share-participating company-Guohua Taishan-also dropped significantly year-on-year.
2. The profitability of the Company's clean energy business continued to increase, which accounted for56.99% of the net profit attributable to shareholders of the parent company, an increase of 11.36% year-on-year.
3. Affected by the increase in the price of fuel, Shanxi Energy, a share-participating company, gained a large year-on-year increase in profitability. Thecompany’s investment income from associates rose as a whole during the reporting period.
Ⅷ.Special purpose vehicle controlled by the Company
□ Applicable√ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
The competition is continuously pluralistic in Chinese power generation industry, Main power assets of the company gather in Guangdong Province.The region there are many other power producers, and greater impact by the west electricity send to the east. From the power supply aspect, the power demands increase slows down with over capacity, the market competition intensifies and the coal-fired power unit utilization hours may decrease continuously as a result of the preferential accessing to the grid policy of the clean energy. Affected by the policy that clean power source is given priority to surf the internet, thermal power is relatively inferior in the competition among power sources. The improvement of the clean power source in energy production and generating efficiency poses a certain pressure on thermal power supply.
2．Development strategy
Pursuing the concept of “creating green energy intentionally”, we will positively arrange and distribute clean
energies including wind power, hydropower, and gas power in the future and optimize power generation structure;
actively promote the thermal power project to develop large units and suppress small ones, conduct upgrading and
Guangdong Electric Power Development Co., Ltd. 2017Annual Report transforming, and promote power quality; strive to explore the power-sold side business, conform to the reformation of electric power system and open up new business areas and development space;
During the “13th Five-year Plan”, the company insists the development concepts of innovation, coordination, green, open and share; sticks to the development mode of innovation and upgrading and platform integration; insists the two-wheel drive development of industrial and capital operation based on Guangdong, facing the whole country and developing the international market; and strives to build the first-rate large-scale group electric listing company at home with international competition, which integrate the traditional energy and new energy generation.
3.Production and operation plan
In 2018, theCompany’s target value of on-grid electricity in budget according to consolidated statements is 66.934 billion kWh, which is a decrease of 1.042 billion kWh or a decrease of1.53% compared to the actual amount of on-grid electricity of 67.976 billion kWh in 2017; the budgetary target value of the main business revenue is RMB 25.294 billion, a drop of RMB 1.099 billion or a decrease of4.16% compared to the actual amount of main business operating revenue of RMB 26.393 billion; the budgetary value for the full-year planned investment is RMB 1.77 billion, an increase of RMB 1.185 billion or an increase of202.56% over the actual completed investment of RMB 585 million in 2017.
(Note: The above operating plan does not represent the company's profit forecast for 2018, whether it can be achieved depending on various factors such as changes in the electricity market and coal market conditions, thus there is considerable uncertainty, and investors should pay special attention to it.)
4.The background and the countermeasures
First, the business operation will have a growing pressure. As the reform of the electric power system continues to advance,it’s estimated that the “market electricity” scale in the province will continue to expand by about50% in 2018, and with that most of the new increase of nuclear electricity and gas electricity will participate in the price bidding and60% of the provincial coal-fired power will enter the market for supply, the sales price of electricity may drop significantly under such situation of over-supply. The continuous release of new capacity going-into-production of nuclear power and gas-electric will squeeze the coal-fired power market share, yet the coal price trend is not optimistic. Meantime,it’s expected that the capital market will continue to be tight and the interest rates will rise to push up the cost of capital.
Secondly, it imminently needs the breakthroughs in the development limits. The company's coal-based electricity business structure has weak anti-risk capabilities. Although the company has made breakthroughs in its clean energy business in recent years, the proportion is still low, and the development potential of the main business is not enough. In order to open up new profit growth points, the company is also making efforts to use the capital market and to revitalize the stocked resources, but it has yet to make substantive breakthroughs.
Thirdly, the institutional mechanism is not competitive enough. The reform of state-owned enterprises and the process of reform of the electric power system have been accelerating and deepening. Changes in the external environment have brought unprecedented impact on the company. However, the company's internal management mechanism, management and control methods, business models and supporting measures still remain under the state of the original system. Therefore, it is necessary to accelerate the reform of the institution system and mechanism of the Company, and thereby truly increase the vigor and market competitiveness of the Company. In 2018, which is the beginning of the implementation of the19th CPC National Congress and the 40th anniversary of reform and opening up, will be a crucial year for the decisive victory to build a well-off society in
Guangdong Electric Power Development Co., Ltd. 2017Annual Report an all-round way and to carry out the 13th Five-Year Plan. It also will be a very meaningful year for the company to continuously adjust the structure of assets, innovate the means of development, fit the market competition, and make transformation from production to service. The company will continue to implement the early-warning management in its operations, follow the “green and innovative” road in its development and broaden sources of income and reduce expenditures and adopt multi-channels to guarantee the funds, ensuring that the Company will be operated in a standardized, “strict, meticulous and practical” manner. Firstly, regarding the business management, the Company will strengthen the marketing, strive for "planned electricity" and actively compete for "market electricity". Second, in the aspect of business development, the Company will continue to implement the basic plan and the striving-for plan for the company's strategic development goal of the “13th Five-Year Plan”. In 2018, there will be a total of 11 under-construction projects with a total capacity of 4,628,400 kilowatts, and the Company will, focusing on the Bohe Power Plant project, the Natural gas projects, wind power projects and other clean energy projects, strive for put into the production of installed capacity of 1,479,500 kilowatts. Thirdly, in terms of innovation and development, in conjunction with clearing out “zombie enterprises”, the Company will continue to promote the development of land resources for the subordinate power plants in accordance with local conditions, and promote the development of some lands into the planning, design, investment, and substantive development phases. The Company will explore the use of sea areas, terminals, and other resources of the subordinate power plants, and revitalize other inventory assets; combining with the industry transformation and upgrading, the Company will seize the opportunity of electric power system reform to deeply participate in the electricity-sales market competition, explore the investment opportunities of downstream industries and search for opportunities in incremental electricity distribution network business and energy storage equipment, thus to further expand the electric power industry chain, so as to fully enjoy the dividend of "Electricity reform"; fourthly, in the aspect of standardized operation, the Company will continue to deepen the integration of party building work and business management, optimize the management and control and optimize the institutions and enhance the staff with par to the market competition, and the Company will further explores ways to improve the talent introduction; rewards and incentives and constraint mechanisms, thus to enhance the competitiveness for talents.Ⅹ.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Reception time|Way of reception|Types of visitors|Basic index|
||||Details can be found in the Record Chart of the Investor|
||Onsite|||
|January 12,2017||Organization|Relation Activity disclosed on Juchao|
||investigation|||
||||website(www.cninfo.com.cn) on 16 January 2017|
||||Details can be found in the Record Chart of the Investor|
||Onsite|||
|March 23,2017||Organization|Relation Activity disclosed on Juchao|
||investigation|||
||||website(www.cninfo.com.cn) on 24 March 2017|
||||Details can be found in the Record Chart of the Investor|
||Onsite|||
|September 7,2017||Organization|Relation Activity disclosed on Juchao|
||investigation|||
||||website(www.cninfo.com.cn) on11 September 2017.|
||||Details can be found in the Record Chart of the Investor|
||Onsite|||
|November 21,2017||Organization|Relation Activity disclosed on Juchao|
||investigation|||
||||website(www.cninfo.com.cn) on 23 November 2017|
|Reception times|||4|
|Reception agency amount|||22|
|Reception personal number|||0|
|Others|||0|
|Whether to disclose, reveal or disclose non-public material information|||No|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash dividend policy during the reporting period
√Applicable□ Not applicable
The profit distribution policy in the Articles of Association of the company is as follows:
Article 161
The company highly valued the investors especially the reasonable investment returns for the small and medium investors, and thecompany’s dividend policy is:
(1) Thecompany’s dividend shall be distributed according to the share proportion held by the shareholders. (2) The company can use cash, stock, cash and stock combination or other means for the distribution of dividends that allowed by the laws, but shall give the priority to the cash dividends distribution for profits distribution. If it meets the conditions required for cash dividends distribution, then the company shall adopt the cash dividends for the profits distribution.
(3) If the net profits attributable to shareholders of the parent company realized by the company in the year are positive and the cumulative distributable profits in the end of the year are positive, the company shall distribute dividends.
(4) The profits annually distributed by the company in cash dividends shall be not less than10% of distributable profits realized in the year, and the accumulative profits distributed in cash dividends in the most recent three years shall be not less than30% of the mean distributable profits realized in the most recent three years. When the company carries out the profit distribution, the proportion of the cash dividends shall be not less than20% in the profits distribution.
(5) The company can carry out the interim profit distribution.
|||
|-|-|
|Special explanation on cash dividend policy||
|Satisfy regulations of General Meeting or requirement of Article||
||Yes|
|of Association (Yes/No)||
|Well-defined and clearly dividend standards and proportion||
||Yes|
|(Yes/No)||
|Completed relevant decision-making process and mechanism||
||Yes|
|(Yes/No)||
|Independent directors perform duties completely and play a||
||Yes|
|proper role (Yes/No) Y||
|Minority shareholders have ample opportunities and their||
||Yes|
|legitimate rights and interests are effectively protected (Yes/No)||
|Condition and procedures are compliance and transparent while||
||Yes|
|the cash bonus policy adjusted or changed (Yes/No)||

Statement on profit distribution plan and capitalization of capital reserve plan of the Company in nearly three
years (including the report period)
Thecompany’s dividend distribution plan of the year 2017was: Based on that the total share capital of the
company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.80 (tax
Guangdong Electric Power Development Co., Ltd. 2017Annual Report inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive) per 10 shares.
Thecompany’s dividend distribution plan of the year 2016 was: Based on that the total share capital of the company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive) per 10 shares.
Thecompany’s dividend distribution plan of the year 2015 was: Based on that the total share capital of the company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 2.3 (tax inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 2.3 (tax inclusive) per 10 shares.
Cash dividend in latest three years
In RMB
|||||||
|-|-|-|-|-|-|
|||Net profit attributable|Ratio in net profit|Amount of cash||
||||||Proportion of cash|
|||to the over of the|attributable to the|dividends from||
||Cash dividend||||dividends from cash|
|Year||parent company in the|parent company in the|cash offer to||
||(Including Tax)||||offer to repurchase|
|||consolidated financial|consolidated financial|repurchase shares||
||||||shares of the funds|
|||statements|statements|of the funds||
|2017|420,022,718.88|743,180,431|56.52%|0|0 %|
|2016|420,022,718.88|936,534,941|44.85%|0|0 %|
|2015|1,207,565,316.78|3,237,733,312|37.30%|0|0 %|

 In the reporting period, both theCompany’s profit and the parentcompany’s retained earnings were positive however not cash dividend distribution proposal has been put forward.
□ Applicable√ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable□ Not applicable
|||
|-|-|
|Distributing bonus shares for every 10 shares (share)|0|
|Distributing cash dividend for every 10 shares (tax included) (RMB)|0.80|
|Per 10 share increase (share)|0|
|Equity base for distribution preplan (share)|5,250,283,986|
|Total amount distribution in cash (RMB) (tax included)|420,022,718.88|
|Profit available for distribution (RMB)|2,766,410,575|
|Cash distributing accounted for the proportion of the total amount of profit distribution (％)|100%|
|Particular about cash dividend in the period||
|If the company’s development is at the growth stage with arrangements of significant capital expenditures, the minimum proportion||
|of cash dividend in the profit distribution should reach 20%.||
|Details of proposal of profit distribution preplan or share conversion from capital public reserve||
|In 2017 the base number for the company’s net profits distribution is RMB696,546,910, plus the non-distributed profits of RMB||
|2,069,863,665 in the prior year, thus the upper limit of the distributable profits is RMB 2,766,410,575. According to the Articles of||
|Association of the company, draw RMB69,654,69 for the statutory surplus reserve taking for 10% of net profits, draw||
|RMB174,136,728 for the other surplus reserve taking 25% of the total net profits, then the upper limit of the distributable profits to||
|the shareholders is RMB2,522,619,157. The company's 2017 annual profits distribution plan is: Based on that the number of the||
|company’s total share capital at the end of 2017 is 5,250,283,986 shares, planned that the company will distribute cash dividends of||
|RMB0.80 (tax inclusive) to A-share shareholders and the company will distribute cash dividends of RMB 0.80 (tax inclusive) to||
|B-share shareholders, thus the total distribution of profits is RMB 420,022,718.88, the remaining undistributed profits will be||
|carried forward for the future years of profit distribution.||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report III.Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities.
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
||||||Period of||
||Commitment|||Time of making|||
|Commitment||Type|Contents||commit|Fulfillment|
||maker|||commitment|||
||||||ment||
|Commitment on|||||||
|share reform|||||||
|Commitment in the|||||||
|acquisition report|||||||
|or the report on|||||||
|equity changes|||||||
||||Yue Dian Li is the only quoted|||On January 3, 2018, the|
||||platform of Yudean Group’s|||Company disclosed the|
||||electricity asset integration|||“Announcement on the|
||||within the boundary. ② Except|||Controlling Shareholder’s|
||||Yue Dian Li and the electricity|||Commitment to Perform|
||||assets controlled by it, within 5|||Related Matters”|
||||years after the last recombination|||(Announcement No.:|
||||is done, Yudean Group will|||2018-01); on January 13,|
||||pump the assets which meet the|||2018, the Company|
||||conditions of launching after|||disclosed the|
||||reformation into Yue Dian Li|||"Announcement of the|
||||gradually through purchasing|||Related Party Transaction|
||||and recombination and other|||of Signing the Equity|
||||ways, according to the situation|||Right Entrustment|
||||of solutions to different|||Agreement with|
||||problems, e.g. the imperfect||Within 5|Guangdong Yudean|
||||examination and approval||years aft|Group" (Announcement|
||Guangdong||procedures, the situation of||er the co|No. 2018-04). In order to|
|Commitment made|||||||
||Yudean||profitability, cooperation|November|mpletion|avoid the horizontal|
|upon the assets|||||||
||Group Co.,||agreement and land utilization.|3,2011|of major|competition and to fulfill|
|replacement|||||||
||Ltd.||③ At the aspects of the||asset reo|the commitment of|
||||development of power project||rganizati|horizontal competition,|
||||and assets purchasing, Yudean||on|Yudean Group has signed|
||||Group provides the priority for|||the “Entrustment|
||||Yue Dian Li choose. If Yue Dian|||Management Agreement”|
||||Li gives up development and|||with the Company, which|
||||purchasing, Guangkong Group|||entrusted all the|
||||will join Yue Dian Li under the|||shareholder’s rights|
||||situation that the project is|||excluding the ownership,|
||||completed and put into|||earnings right and right of|
||||production, and that the purchase|||disposition of the|
||||is done and the project meets the|||companies within the|
||||conditions of listing.For details,|||entrustment scope by|
||||see June 5, 2014, published in t|||Yudean Group to the|
||||he designated media "Announce|||Company. Thus, such|
||||ment of Guangdong Electric Po|||commitment has been|
||||wer Development Co.,Ltd. matt|||fulfilled on time.|
||||ers related to commitments".||||
|Commitments in|||||||
|initial public|||||||
|offering or|||||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||
|-|-|
|re-financing||
|Equity incentive||
|commitment||
|Other commitments||
|for medium and||
|small shareholders||
|Completed on||
||Yes|
|time(Y/N)||

2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the forecast period, the company has assets or projects meet the original profit forecast made and the reasons explained
□Applicable√ Not applicable
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable√ Not applicable
No non-operating occupation from controlling shareholders and its related party in the period.
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the QualifiedAuditor’s Report Issued by the CPAs.
□ Applicable√ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared with the financial reporting of last year.
√Applicable□ Not applicable
1. Overview of Changes in Accounting Estimates
On June 1, 2017, the company disclosed “Announcement on Adjusting the Depreciation Period and Residual Value Ratio of Certain Fixed Assets” (Announcement No. 2017-20). According to the "No. 4 Accounting Standard for Business Enterprises-Fixed Assets" and the Company's relevant regulations, the Company sorted out the estimated use-life and the estimated net residual value of various types of fixed assets based on the current performance and use status. From June 01, 2017, the depreciation period of certain fixed assets was adjusted, and the residual value ratio of fixed assets of Zhanjiang Wind Power and Shibeishan Wind Power was adjusted from10% to5%, thus making it more reasonable and making the company's financial situation more objective. 2. Explanation of reasons for changes in accounting estimates
The company continued to increase its investment in fixed assets and promoted the construction of a large number of advanced units with large capacity, high-efficient parameters, low energy consumption and low emissions, resulted in an increase in the average life span of the company's overall units compared to the past. Meantime, the company has been continued to carry out the technological transformation and technological innovation of the unit equipment, and carried out comprehensive overhaul and annual maintenance on a regular basis, which improved the use performance and equipment level of the units and also extended the operational life of the fixed assets in some extent. In fact, the actual use-life of some fixed assets has exceeded the depreciation period. On the
other hand, some fixed assets of the company were also affected by changes in the economic environment and
technological progress, which led to a significant decrease in their economic life.
In addition, the subsidiary Guangdong Yudean Zhanjiang Wind Power Co., Ltd and the indirect subsidiary
Guangdong Electric Power Development Co., Ltd. 2017Annual Report Guangdong Yudean Shibeishan Wind Energy Development Co., Ltd-which is foreign capital enterprise-use a residual value ratio of fixed assets of10% (the company's other domestic-funded enterprises use the residual value ratio of5% for fixed assets). To facilitate management and planning, the residual value ratio of fixed assets is uniformly adjusted to5%.
3. The impact on the company
According to the “No. 28 Accounting Standard for Business Enterprises-Accounting Policies, Changes in Accounting Estimates, and Error Corrections”, the adjustment of the depreciation period and residual value ratio of fixed assets belongs to a change in accounting estimates, which should be handled in accordance with the perspective approach without retrospection. The adjustment will not affect the company's financial status and operating results in previous years.
The impact of the adjustment of the depreciation period and residual value ratio of fixed assets on thecompany’s financials is:
(1) The depreciation of fixed assets:It’s expected to decrease by approximately RMB 670 million annually, andit’s expected to decrease by approximately RMB 377 million in 2017;
(2) The net profit attributable to the parent company:It’s expected to increase by approximately RMB 382 million annually andit’s expected to increase by approximately RMB 212 million in 2017;
(3) The ownership interests attributable to the parent company:It’s expected to increase by approximately RMB 382 million annually andit’s expected to increase by approximately RMB 212 million in 2017.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting period
□Applicable√ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.√Applicable□ Not applicable
New Subsidiary Establishment of the Year
||||||||
|-|-|-|-|-|-|-|
||Business|Registered|||||
|Name|||Nature|Registered capital|Proportion (%)|Acquired|
||place|address|||||
|Tongdao Yuexin Wind Power GenerationCo., Ltd.|Huaihua,Hunan|Huaihua,Hunan|ElectricPower|10,000,000|100%|Invested|
|Hunan Xupu Yuefeng New Energy Co.,Ltd.( Indirect subsidiary)|Huaihua,Hunan|Xupu,Huaihua ,Hunan|ElectricPower|20,000,000|100%|Invested|
|Guangxi Wuxuan Yuefeng New EnergyCo., Ltd.( Indirect subsidiary)|Guangxi|Wuxuan,Guangxi|ElectricPower|20,000,000|100%|Invested|
|Huizhou Pingdian Energy Co.,Ltd.(Indirect Subsidiary)|Huizhou|Huizhou|ElectricPower|20,000,000|45%|Invested|

IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||
|-|-|
|Name of the domestic CPAs|PWC Certified Public Accountants (special general partnership)|
|Remuneration for domestic accounting firm (RMB’0000)|312|
|Continuous life of auditing service for domestic accounting firm|2|
|Name of domestic CPA|Wang Bin, Chen Junjun|
|The Continuous Years of Audit Service of Certified Public||
||2|
|Accountants of China Certified Public Accountants||

Has the CPAs been changed in the current period
□ Yes√ No
Description of the CPAs, financial adiver or sponsor engaged for intemal control auditing
√Applicable□Not applicable
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 2017. The audit remuneration was RMB 3.12 million.
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report□Applicable√ Not applicable
XI.Bankruptcy reorganization
□Applicable√ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII.Significant lawsuits and arbitrations of the Company
□Applicable√ Not applicable
XIII.Situation of Punishment and Rectification
□Applicable√ Not applicable
No penalty and rectification for the Company in reporting period.
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable√ Not applicable
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or Other Employee Incentive Measures
□Applicable√ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives that have not been implemented.
XVI.Material related transactions
1. Related transactions in connection with daily operation
□Applicable√ Not applicable
Guangdong Electric Power Development Co., Ltd. 2017Annual Report 2. Related-party transactions arising from asset acquisition or sold
□Applicable√ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Related-party transitions with joint investments
□Applicable√ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
□Applicable√ Not applicable
Nil
5. Other significant related-party transactions
√ Applicable□ Not applicable
（1）2017 daily related transactions were carried out after examination and approval by 2017 first provisional shareholders' general meeting and 2017 second provisional shareholders' general meeting. Refer to (5) Related transactions of XII. Relationship between related parties and the transactions between them of the Financial Report of this report for details.
(2) The Proposal on the Financial Services such as Making the Application of the Total Loan Limit of RMB 17 Billion and Handling the Deposit Settlement to the Related Party- Guangdong Yudean Finance Co., Ltd by the Company and Some of its Subsidiaries was approved in thecompany’s 2016 annual general shareholder meeting for implementation.
(3) Guangdong Shaoguan Yuejiang Power Generation Co., Ltd., as the holding subsidiary of the company, intends to purchase partial fixed assets of Guangdong Shaoguan No.9 Power Unit Joint Venture Co., Ltd. through conclusion of an agreement in the proposed price of 24.8628 million yuan (the final purchase price shall be subject to the asset evaluation price approved in the file of the State Capital Management Department), which was approved by the 1st session for communication of the 8th Board of Directors of the company in 2017 through deliberation.
(4) The Company and the related party Guangdong Yudean Financing Leasing Co., Ltd signed the "Financial Leasing Cooperative Framework Agreement", and the amount of financing leases provided by the financial leasing company to the Company and its holding subsidiaries within the period of agreement shall be not more than RMB 2 billion, which has been approved by the first extraordinaryshareholders’ meeting in 2017.
Website for temporary disclosure of the connected transaction
||||
|-|-|-|
|Announcement|Date of disclosure|Website for disclosure|
|Daily related transaction announcement|April 26,2017|http//www.cninfo.com.cn.|
|Announcement on the Company’s Related Transaction of GuangdongYudean Finance Co., Ltd.|||
||April 26,2017|http//www.cninfo.com.cn.|
|Announcement on the related party Transactions of Guangdong ShaoguanYuejiang Power Generation Co., Ltd. Purchasing Part Fixed Assets ofGuangdong Shaoguan No.9 Power Unit Joint Venture Co., Ltd.|||
||June 1,2017|http//www.cninfo.com.cn.|
|Announcement on the related Transactions Concerning Conclusion ofFinancing Lease Cooperation Framework Agreement with Guangdong|||
||August 31,2017|http//www.cninfo.com.cn.|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||
|-|-|-|
|Yudean Financing Leasing Co., Ltd.|||
|Estimates announcement of the newly-added Daily Related PartyTransactions of 2017|||
||August 31,2017|http//www.cninfo.com.cn.|
|Estimates announcement of the Adjustment Daily Related PartyTransactions of 2017|||
||March 24,2018|http//www.cninfo.com.cn.|

XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable√ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable√ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
□Applicable√ Not applicable
No any lease for the Company in the reporting period..
2.Guarantees
√Applicable□ Not applicable
（1）Guarantees
InRMB’0000
||||||||||
|-|-|-|-|-|-|-|-|-|
|Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)|||||||||
|||||||||Guarantee|
||Relevant||Date of||||||
||||||||Complete|for|
||disclosure||happening|Actual||Guara|||
|||Amount of|||Guarantee||implement|associated|
|Name of the Company|date/No. of the||(Date of|mount of||ntee|||
|||Guarantee|||type||ation|parties|
||guaranteed||signing|guarantee||term|||
||||||||or not|(Yes or|
||amount||agreement)||||||
|||||||||no)|
|Yunnan Baoshan Binlangjiang|||||Guaranteei||||
||||December|||15|||
|Hydroelectricity Development|May 24,2007|4,350||2,320|ng of joint||No|No|
||||19,2007|||years|||
|Co., Ltd.|||||liabilities.||||
|Yunnan Baoshan Binlangjiang|||||Guaranteei||||
||December||November|||15|||
|Hydroelectricity Development||4,350||696|ng of joint||No|No|
||19,2007||30,2007|||years|||
|Co., Ltd.|||||liabilities.||||
|Yunnan Baoshan Binlangjiang|||||Guaranteei||||
||November||November|||12|||
|Hydroelectricity Development||7,250||464|ng of joint||No|No|
||12,2008||14,2008|||years|||
|Co., Ltd.|||||liabilities.||||
|Yunnan Baoshan Binlangjiang|||||Guaranteei||||
|||||||18|||
|Hydroelectricity Development|May 27,2009|9,367|June 22,2009|5,887|ng of joint||No|No|
|||||||years|||
|Co., Ltd.|||||liabilities.||||
|Yunnan Baoshan Binlangjiang|May 27,2009|7,250|May 27,2009|2,900|Guaranteei|15|No|No|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Hydroelectricity Development|||||||||ng of joint|||years||||
|Co., Ltd.|||||||||liabilities.|||||||
||||||||Total actually amount|||||||||
|Total amount of approved external|||||||of external guarantee|||||||||
||||0|||||||||-2,784||||
|guarantee in the report period(A1)|||||||in the report|||||||||
||||||||period(A2)|||||||||
||||||||Total actually amount|||||||||
|Total amount of approved external||||||||||||||||
||||||||of external guarantee|||||||||
|guarantee at the end of the report|||190,835|||||||||12,267||||
||||||||at the end of the report|||||||||
|period(A3)||||||||||||||||
||||||||period(A4)|||||||||
|Guarantee of the company for its subsidiaries||||||||||||||||
||||||||||||||||Guarante|
|||Related||||||||||||Complete||
|||||Date of||Actually|||||||||e for|
|Name of the company||announcem|Amount of||||||||Guarantee|||implemen||
|||||happening(date of||guarantee||Guarantee type|||||||related|
|guaranteed||ent date|guarantee||||||||term|||tation or||
|||||signing agreement)||amount|||||||||party(yes|
|||and no.||||||||||||not||
||||||||||||||||or no)|
|Zhanjiang Wind||||||||Guaranteeing||||||||
|||April||||||||||||||
|Power Generation Co.,|||18,571.7|October 9,2010||7,758.82||of joint|||18 years|||No|No|
|||29,2009||||||||||||||
|Ltd.||||||||liabilities.||||||||
|Guangdong Shaoguan||||||||Guaranteeing||||||||
|||November||||||||||||||
|Yuejiang Power|||9,000|anuary 28,2014||4,590||of joint|||7 years|||No|No|
|||16,2013||||||||||||||
|Generation Co., Ltd.||||||||liabilities.||||||||
|Guangdong Shaoguan||||||||Guaranteeing||||||||
|||November||||||||||||||
|Yuejiang Power|||8,100|January 29,2014||3,690||of joint|||7 years|||No|No|
|||16,2013||||||||||||||
|Generation Co., Ltd.||||||||liabilities.||||||||
|||||||Total of actual guarantee||||||||||
|Total of guarantee for subsidiaries||||||||||||||||
||||0|||for subsidiaries in the|||||-10,520.32|||||
|approved in the period(B1)||||||||||||||||
|||||||period (B2)||||||||||
|||||||Total of actual guarantee||||||||||
|Total of guarantee for subsidiaries||||||||||||||||
||||141,536|||for subsidiaries at|||||16,038.82|||||
|approved at period-end(B3)||||||||||||||||
|||||||period-end(B4)||||||||||
|Guarantee of the subsidiaries for the controlling subsidiaries||||||||||||||||
||||||||||||||||Guarante|
||Relevant|||||||||||||||
|||||Date of|||||||||Complete||e for|
|Name of the|disclosure|||||||||||||||
||||Amount of|happening (Date|Actual mount|||Guarantee||Guarantee|||implement||associate|
|Company|date/No. of|||||||||||||||
||||guarantee|of signing|of guarantee|||type||term|||ation or||d parties|
|guaranteed|the guaranteed|||||||||||||||
|||||agreement)|||||||||not||(Yes or|
||amount|||||||||||||||
||||||||||||||||no)|
|The Company’s total guarantee(i.e. total of the first three main items)||||||||||||||||
||||||Total amount of guarantee|||||||||||
|Total guarantee quota approved in|||||actually incurred in the|||||||||||
||||0|||||||-13,304.32||||||
|the reporting period（A1+B1+C1）|||||reporting period|||||||||||
||||||（A2+B2+C2）|||||||||||
||||||Total balance of the actual|||||||||||
|Total guarantee quota already||||||||||||||||
||||||guarantee at the end of the|||||||||||
|approved at the end of the|||332,371|||||||28,305.82||||||
||||||reporting period|||||||||||
|reporting period（A3+B3+C3）||||||||||||||||
||||||（A4+B4+C4）|||||||||||
|The proportion of the total amount of actually guarantee in the net||||||||||||||||
||||||1.19%|||||||||||
|assets of the Company (that is A4+B4+C4）%||||||||||||||||
|Including：||||||||||||||||
|The debts guarantee amount provided for the||||||||||||||||
|Guaranteed parties whose assets-liability ratio exceed|||||20,547|||||||||||
|70% directly or indirectly（E）||||||||||||||||
|Total guarantee Amount of the abovementioned guarantees||||||||||||||||
||||||20,547|||||||||||
|（D+E+F）||||||||||||||||

Description of the guarantee with complex method
Guangdong Electric Power Development Co., Ltd. 2017Annual Report (2) Illegal external guarantee
□ Applicable√ Not applicable
No Illegal external guarantee in the report period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable√ Not applicable
No any Entrusted Finance for the Company in the reporting period.
（2）Situation of Entrusted Loans
□ Applicable√ Not applicable
No any Entrusted loans for the Company in the reporting period.
4. Other significant contract
□ Applicable√ Not applicable
No other significant contracts for the Company in reporting period.
XVIII.Social responsibilities
1. Information of performance of social responsibilities
For details, please see the Social Responsibility Report disclosed by the company on the same day. http://www.cninfo.com.cn
2.Overview of the annual targeted poverty alleviation
（1）Precise poverty plan
The Company will in depth implement the spirits of the Central work Conference on Poverty Alleviation and the Development and General Secretary Xi Jinping's series of important speeches on poverty alleviation and the development, and in accordance with the Guangdong Provincial people's Government's "Opinions on the implementation of Three years Strongly Tackling Difficulties on Precision Poverty Alleviation and Precision Poverty Reduction in the New Time" and the overall plan and arrangement of Guangdong Province's 2016-2018 of new time of "Precision Poverty Alleviation and Precision Poverty Reduction", by adhering the concept of innovation, coordination, green, open and shared development, the Company will strengthen the awareness of the overall situation and the sense of responsibility of “The Rich fist leads latter, and realize the common prosperity”, fully utilize the advantages, carry out the measures of precision poverty alleviation to the village-under-aid, effectively enhance the local “vitality-making” function, focus on boosting thevillage’s collective economic strength, developing the environment and society andpeople’s livelihood, thus to increase the income of poverty-alleviation objects, so as to ensure the accomplishment of various project goals and tasks.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report① Soundly do the work of the poverty alleviation by industry development. Formulate the characteristic industry development for the village-under-aid, implement the “one village, one product” industry promotion action, tap into the resources advantages, precisely select the dominant industry and the dominant products, support the construction of characteristic agricultural bases with high participation of poverty households, support the large agricultural households and professional cooperatives , small and micro enterprises and so forth agricultural operation bodies to speed up the development. Explore the “Internet+ Precision Poverty Alleviation” model, strengthen the training of rural E-commerce merchants in poor villages, and encourage farmers to open online stores for self-development.
②Explore the poverty alleviation by shares. Promote the income-increase mode of poor village collective economy, allow the financial special poverty alleviation funds and other agricultural-related funds to invest in facilities such as agriculture, farming, industrial parks, hydropower, rural tourism and so forth without changing their use purposes, and the resulting asset income can be converted to shares quantization to poor villages and poor households. Cooperate with the local to explore and promote the rights confirmation of land management with accordingly converting to shares, guide poverty-stricken households, especially those who are incapable of working, to voluntarily transfer the land management rights according to law, and use assets such as land, agricultural facilities, and poverty alleviation funds to price to convert into shares, gaining the operating income according to shares.
③ Cooperation in training and employment. Oriented towards enhancing the ability of the poor to get employment, assist to carry out the all kinds of policy training, promote the relevant vocational and technical colleges to recruit children from poor families, thus to enable them to achieve skills to get out of poverty.
④Improve the infrastructure. Cooperate with the local to improve the traffic conditions and development environment in the village-under-aid; support and help key villages-under-aid of the safe drinking water projects; improve farmland water conservancy facilities; improve sewage facilities; improve the garbage collection and treatment and the cleaning system; improve village cultural and leisure activities, public toilets, landscaping and greening and other facilities; ensure that the relevant indicators meet the provincial standards.
⑤Boost the education culture. In coordination with the local education and cultural departments, the Company will vigorously promote the poverty alleviation through education so that all children in the villages-under-aid can receive a good education, increase the education subsidies for poor families, ensure that children from poor households do not drop out of school due to poverty, pay attention to left-behind children, and build left-behind children's service centers.
⑥Help to improve the environment. Cooperate with the local to raise funds by multi-channels to help impoverished households complete the renovation of dilapidated buildings and fully complete the task of assisting low-income people in housing reconstruction, assisting in the improvement of domestic garbage disposal, sewage treatment, public toilets and greening and beautification of villages. We will use the entire village as a platform to accelerate the improvement of production and living conditions of poor villages, and steadily promote the construction of beautiful livable villages to realize the new appearance of the old villages.
⑦Consolidate the grassroots foundation. Cooperate with the local people to adhere to the Party building and poverty alleviation both at the same time, with the party building to help the poor and with the poverty alleviation to promote the party building. Organize and hold regular meetings of the "two committees" meetings of the villages to study the work of aiding the poor; the assigned cadres should assist the "two committees of the village" to do a good job in organizing the masses, serving the masses, uniting the masses, and enhancing the ability of the cadres of the "two committees" of the poor villages to lead the people out of poverty and run to health;It’s necessary to constantly strengthen the development consciousness, market awareness, teaching ideas, teaching
Guangdong Electric Power Development Co., Ltd. 2017Annual Report methods and teaching experience of cadres at the grass-root level, mobilizing the grass-root level cadres, strengthen the grass-root organizations, muster up the drive to fight against poverty, and build up “The never-leaving Task Force on Poverty Alleviation”, thus to lay the foundation for the sustainable and healthy development of poor villages.
⑧Lead multiple parties to participate in. Guide industries, enterprises, social organizations and individuals to participate in poverty alleviation, and encourage companies to actively undertake social responsibilities, fully stimulate the market's vitality, and help villages to invest in industries, develop training skills, absorb employment, and help the poor with donated money through various forms such as resource development and joint construction of villages and enterprises.
⑨Strengthen the publicity for poverty alleviation. Adhere to the guidance of public opinion, comprehensively publicize and accurately interpret the decision-making and deployment of “Precision poverty alleviation and Precision poverty reduction”, strengthen the ideological education and guidance, and strengthen the cadres and the masses' centripetal force and cohesion in poverty alleviation work and the development work. Guide the villagers to change the obsolete customs and habits, stimulate the impoverished people to work hard and develop good enthusiasm, and create a positive atmosphere for self-reliance, hard-working and getting rid of poverty and becoming better off.
（2）Precise poverty alleviation
During the reporting period, the company conscientiously implemented the Guangdong Province's “Precision Poverty Alleviation and Precision Poverty Reduction in Three Years of Strongly Tackling Difficulties” program and actively organized manpower, material, and financial resources for poverty alleviation. The 6 subordinate companies namely the Yuejiang Company, Honghai Wan Company, Zhenneng Company, Zhanjiang Company, Dapu Company, Zhanjiang Wind Power Company actively carried out the precision poverty alleviation work and achieved phased results.
I Counterpart assistance of Yuejiang Company on Mi Xiashui village,Quan’an Town, Nan Xiong City
1. Comprehensively promote industrial support. In July, the Mixiashui Village Zhongzhi Farmers Planting and Breeding Specialized Cooperative was established to develop and grow the leading industries of high-quality rice cultivation in the village and the development of eco-characteristic aquaculture such as Meihua pigs. By supporting production materials, donating harvesters and other forms, the planting cost will be reduced, and villagers will be encouraged to join cooperatives for planting and breeding, and the planting area will be expanded. Now 2 poor households with foundation and experience have been assisted to breed 68 Meihua pigs as trail, and slaughter has been beginning in November, which results in good economic returns.
2. Organize skills training. Encourage and guide the labor force of 4 poor households to work in the Pearl River Delta, Nanxiong urban area and other places to increase their income.
3. Implement educational and cultural assistance. Assist in the implementation of the current policy of subsidizing students with financial difficulties in families at various stages of education, and continue to implement related policies such as living expenses subsidy for 23 children studying at school from poor households, so as to ensure that children from poor households do not drop out of school due to poverty.
4. Continue to implement dilapidated housing transformation. Assist in completing the dilapidated housing transformation of 11 poor households in 2017, which has fully started in the first half year and has completed within the same year. Among these, 4 households have received subsidy funds.
5. Implement social security poverty alleviation. Continue to implement social security work to ensure that it can
Guangdong Electric Power Development Co., Ltd. 2017Annual Report realize guarantee as far as possible. The old man over the age of 60 from poor households can enjoy the benefits of urban and rural pension insurance completely, and all of the poor population can participate in urban and rural medical insurance, while implementing basic health care systems that cover the poor population and steadily promoting equalization of basic public health services.
6. Perfect the infrastructure of Mishui Village and improve the living environment. The engineering project of the Health Station and the Home-based Pension Public Service Center in Mixiashui Village are started to construct after the opening of the bid on October 19; the target for road hardening of 10 km was obtained, with the investment amount of approximately RMB 3 million, and the project approval has been completed; the high-standard farmland construction of 1622 mu are obtained, involving investment of more than RMB2.43 million, which has now been tendered and showed online; 8 water points are tried to carry out water safety renovations, which has now completed field survey work and design work and will be included in construction planning and arrangements for construction funds.
7. The establishment of new socialist countryside has been steadily carried out. A council of villagers' autonomy with villagers' groups (natural villages) as a unit has been established to exercise the autonomy function of outdoor public affairs in the village; now Shangmen, Longjiangkeng, Chengsi, Liaowu, Yaowu, Liuwu, Shigang, Shijiaowan, Zhangshuxia these 9 villages have been declared as neat villages, and they carried out the “Three Cleaning and Three Demolition” work as planned.
The 24 persons from 8 households of Mixiashui Village in 2017 meet the “eight requirements” to achieve out of poverty.
II. Counterpart assistance of Red Bay Company on Outian Village, Luoxi Town, Luhe County
1. In order to do well supporting plan of poor village and poor household, achieve targeted poverty alleviation, and the work team will conduct interviews with poor households to understand the causes of poorhouseholds’ poverty, the extent of poverty and the willingness to get rid of poverty. The work team visited the planting and breeding industries in the surrounding villages, drawing on advanced experience, planning the development direction of individual planting and breeding and employment of the poor households, and the work team and the village committee personnel research to formulate one-household-one-policy poverty alleviation plan, to form a poor household profile. The train on poor households transferring employment skills and applied skills in agriculture is conducted, totaling more than 100 persons. In order to allow people with workforce to get close to employment and continue to get rich through labor, the work team worked hard to promote the construction of rural tourism projects in the natural village of Kengzaili, actively cooperated with the departments of tourism, land, water supply, power supply and telecommunications, etc. of county and town, kept in touch and communicated, and got their strong support to lay the foundation for the development of rural tourism projects in OCT East Shenzhen. The construction and operation of rural tourism will play a crucial role in developing the local economy, beautifying the environment and providing employment. According to the Implementation Measures for Targeted Poverty Alleviation Employment and Industrial Poverty Alleviation “Substitute Subsidies with Rewards” of New Period in Luhe County, the poor households were encouraged to actively plant sweet potatoes, taro, rice, peanuts, breeding bees and other projects to get rid of poverty and become rich. Encourage and guide individuals with labor force to go out to work and other methods to promote to get rid of poverty and become rich through labor, which has already achieved initial success in this year, and the enthusiasm of poor people has significantly increased. In accordance with the unified arrangements of the county party committee and county government, speeding up the construction of new countryside, the work team has devoted itself to the “Three Cleaning, Three Demolition and Three Rectifications” campaigns with a positive attitude of responsibility, which
Guangdong Electric Power Development Co., Ltd. 2017Annual Report has contributed to transform the beautiful environment of village.
2. Actively cooperate with the village committee and town government to complete the seventh village-level general election. Through hard work, the general election of village committee and branch committees is completed according to law and compliance on May 11 and 12, and the new village committee and branch committees will continue to promote targeted poverty relief and targeted poverty alleviation.
3. Actively develop the collective economy and the poverty alleviation method for one-household-one policy. Luhe County Outian Village Business Development Co., Ltd. is established. Taking the village committee as a group to develop the economy, with the purchase of agricultural machinery and equipment and the acquisition of agricultural products from poor households as the guide, it mobilizes poor households to get rid of poverty actively through many projects such as planting sweet potatoes and taro and breeding honey bees, while encouraging and guiding individuals with labor force to go out to work and other ways to promote poverty relief through labor.
4. Follow up the implementation of poverty alleviation policies for poor household in education, renovation of dangerous buildings, medical insurance, social security and public health reforms, so that the poor household will be beneficial.
5. Actively carry out party building and maintenance work, and actively participate in and carry out the “three sessions and one lesson” activity of the party branch committee. Actively implement anti-drug, eliminate illegal assembly and oppose heresy education; carry out medical and health construction to create a civilized village. 6. Actively participate in the construction of new rural areas and complete most of the natural villages' work of “Three Cleaning, Three Demolition and Three Rectifications”
7. Poverty relief task of 114 persons from 23 households was completed in 2017.
III. Counterpart assistance of Zhenneng Company on Xinpo Village, Shalang Town, Dianbai District, Maoming City
1. Increase income project is in place. On the basis of 2016, we adhere to the combination of "one-household-one-policy" and practice, extensively solicit the views of poor households and implement the "short-medium-length" combinative income increase projects, that is, the short-term domestic vegetable basket project, the medium-term leek industrial park project and the long-term photovoltaic power generation projects. (1) Implementation of domestic vegetable basket project. It is mainly to launch and assist poor households in carrying out decentralized planting and breeding, and the supporting unit establishes award fund for the provision of seedlings, production materials and awards as well as assistance in the sale of agricultural products. In the past year, 16 poor households were distributed baby chicken and conducted technical training, and guaranteed recovery agreement was signed, which is estimated to increase income by about RMB 44,000 for poor household; at the same time, the poor households raised cattle, raised pigs and planted vegetables and rice according to their actual conditions to increase income by actively developing production.
(2) Construction of leek industrial park. Adopting the model of “company+ cooperative+ poor households”, the local agricultural planting company will cooperate with the Kaiyuan Planting Professional Cooperative in the Dianbai District, Maoming City (be composed of poor households with labor force, which is referred to as “Kaiyuan Cooperatives”), and invest specific financial funds for poor households and supporting funds of supporting units, totaling RMB 500,000 Yuan, to establish a 60-mu leek planting base. The follow-up investment is taken charge by the Company, with the cooperation period of 7 years (2017-2023), and the annual fixed dividend is RMB 132,000 Yuan and RMB 4200 Yuan in the first 5 years and later 2 years respectively. The dividend was RMB600 Yuan/person in 2017.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report (3) Construction of photovoltaic poverty reduction power station. Adopting the model of “company+ cooperative+ poor households”, the photovoltaic company cooperates with Kaiyuan Cooperatives to buy share with the financial pooling funds of poor households, and builds 200 KW photovoltaic power station at the top of Xinpo village committee office building and Xinpo primary school teaching building and mountain behind building.. Each of the partners invested RMB 1 million Yuan, with the cooperation period of 20 years. The fixed dividend method is adopted: with RMB 160,000 per year from 2017 to 2022, it is expected that the poor households will receive an increase income of RMB 1221 Yuan/person/year; RMB 100,000 Yuan per year from 2023 to 2037. The project was started construction in late October 2017, and photovoltaic panels are currently being laid, and efforts will be made to generate electricity before the Chinese New Year in 2018, and the dividend will be distributed to households in December 2018.
2. Transfer employment is in place. 34 persons from poor households were mobilized to work outside the home to raise family income. 18 persons living in poverty were encouraged to conduct semi-agricultural and semi-industrial work that mainly consisted of plasterers and casual workers.
3. House renovation is in place. On the one hand, assist poor households in the renovation of dilapidated houses. In Xinpo Village, 21 poor households have applied for dilapidated housing renovation, so the village work team has communicated and negotiated with the relevant authorities, applied for the indicators of dilapidated houses renovation, convened the mobilization of the poor households and carried out dilapidated housing renovations in strict accordance with the requirements. In 2016 and 2017, a total of 17 households were renovated and had received full subsidy funds. On the other hand, it helps poor households to carry out house maintenance. Through in-depth investigation, the housing doors and windows of poor households such as Xu Simei and Cai Yasi have been damaged and affected their living, so Maoming Zhenneng Thermal Power Co., Ltd. funded more than RMB 23,000 Yuan to help them install aluminum alloy windows, water and electricity, improve the living environment and ensure housing security. In addition, there were 4 households that had not carried out the renovation of the dilapidated buildings, and the cadres stationed in the village had already understood the on-site situation, and the submitting list application has been included in the scope of 2018 dilapidated housing renovations.
4. Education subsidy is in place. As of the end of 2017, 39 students at school were assisted in applying for the education subsidy of 2016-2017 school year and put it in place, while 40 students at school were assisted in applying for the education subsidy of 2017-2018 school year. The first semester subsidy of RMB 1,500 Yuan has been implemented to ensure the children of school age from poor households do not drop out of school due to poverty.
5. Security policy is in place. Purchase medical insurance for all poor households and raise minimum living allowances and five guarantees, which truly realize guarantee as far as possible; assist poor families with severe illnesses to apply for medical assistance, and reduce economic burdens; carry out condolences for poverty before Spring Festival, July 1 and Mid-Autumn Festival, to bring gifts and holiday greetings for the poor household. After one year of hard work, 77 persons from 18 poor households were assisted to achieve poverty pre-reduction through the above measures. In 2016 and 2017, a total of 102 persons from 37 poor households were achieved poverty pre-reduction.
IV. Counterpart assistance of Zhanjiang Company on Waiyuan Village, Nanxing Town, Leizhou City
In 2017, combining with the actual situation of counterpart assistance villages, the poverty alleviation workers continued to maintain the current planting status of the villagers and poor households in the traditional production items such as rice, peanuts and peppers, while the team mobilized individual poor households to contract paddy fields to increase rice cultivation and increase income. The poverty alleviation work team assisted poor
Guangdong Electric Power Development Co., Ltd. 2017Annual Report households in purchasing chemical fertilizers for production based on the availability of the national poverty alleviation fund, increasing the output of crops and increasing economic income.
Formulate long-term assistance industries, so that the poor households have a longer return. Firstly, poor households are assisted to purchase yellow cattle for breeding according to the willingness of poor households, and economic income is increased through farming. Secondly, poor households are assisted to purchase agricultural tricycles for small-scale transportation and increase their economic income based on the willingness of poor households. Thirdly, poor households are assisted to purchasing cultivator and hand-held machines for farming according to the wishes of poor households with large labor force and contracted rice cultivation, to increase their planting efficiency and increase economic income. Fourthly, all poor households are mobilized to invest in photovoltaic power generation projects. The initial decision is to build on top of poor households or on public land, which is organized and implemented by the town government. The purchase of photovoltaic power generation projects can enable poor households to enjoy more than two decades of income.
V. Counterpart assistance of Dapu Company on Xiamu Village, Fenglang Town, Dapu County, Meizhou City 1. Strengthen the team building and assist in completing the election of the village "two committees" team smoothly.
2. Strengthen the grassroots party building: build village party members activity room and purchase a group of office furniture; carry out activities to celebrate the 96th anniversary of party founding, and condole 15 old 60-year-old party members and one specially poor party member, and organize party members to the red education base and new rural construction demonstration points to visit and learn; do a good job of party building billboards and institutions exhibition.
3. Do a good job of cultural assistance. RMB 250,000 Yuan was invested to build a village cultural activity room in 2017.
4. Self-financed RMB 20,000 Yuan was used to help poor households.
5. RMB 3000 Yuan was invested for the purchase of audio-visual equipment in the Xiamu Elementary School. As of December 2017, 71 poor households out of 72 poor households in Xiamu Village had completed the initial assessment of poverty alleviation.
VI. Counterpart assistance of Zhanjiang Wind Power Co., Ltd. on Houhai Village, Xinliao Town, Xuwen County In 2017, Zhanjiang Wind Power Co., Ltd. continued to carry out targeted poverty alleviation in Houhai Village, Xinliao Town, Xuwen County, Zhanjiang City. With the strong leader of the party committee at the higher level and the strong cooperation of the village "two committees" cadres as well as the efforts of the work team stationed in village, good phased results have been achieved.
(I) Implementation of industrial poverty alleviation project
1. Active development of the cattle industry. RMB 834,600 Yuan was invested to subsidize 61 poor households to buy cows and develop the cattle industry to increase household income. The project was scheduled to be put into use in February this year with RMB 180,000 Yuan and in July this year with RMB 654,600 Yuan in two batches, and it has been completed. Moreover, some cows have given birth to calves, receiving benefits. It is expected that the annual income of each household will increase by about RMB 5,000 Yuan to RMB 20,000 Yuan (the investment of supportingunits’ self-financing funds RMB 590,000 Yuan and the provincial and municipal special funds RMB 244,600 Yuan).
(II) Implementation of asset poverty alleviation project
1. Installation of photovoltaic power generation projects. In principle, a total of about RMB 10,000 Yuan in three
Guangdong Electric Power Development Co., Ltd. 2017Annual Report years were invested to install 1.12 kilowatts of photovoltaic power generation projects based on per person of per family with labor capacity population. It is expected that the annual income of each person of each household will increase by about RMB 1,300 Yuan, with the income period of about 25 years. The first batch of the project was invested RMB 557,984 Yuan, the second batch was invested RMB 758,160 Yuan, and construction has been basically completed. (the investment of provincial and municipal special funds RMB 1,316,000 Yuan).
2. Investment in purchasing stores. The income distribution of the project: the income from the first year to the fifth year will be distributed to poor households fully for dividend; from the sixth year to the tenth year,70% of the income will be distributed to poor households for dividend,20% of the income will be used by village committees to finance specially poor households and collective public welfare, and10% of income will be used for store maintenance. Beginning in the 11th year, the income will be used by village committee to fund specially poor households and collective public welfare projects, and the property right of the stores belongs to Houhai Village Committee. The store will be purchased based on investment of RMB 2,000 Yuan per person of per family with labor capacity population, which is bout RMB 630,200 Yuan in total. It was expected that the annual income increase of each family will be6% to7% of the funds invested. The project began to generate income from August 2017 (the investment of provincial and municipal special funds RMB 630,177 Yuan).
3. Investment in Zhanjiang City Management Enterprise Project. The investment in this project is from August 2017 to July 2018, with the one-year income of6.5% of the invested capital. A total of 26 households with labor capacity population invested RMB 6500 Yuan per person for this project, with total investment of approximately RMB 884,000 Yuan. The project began to generate income from August 2017 (the investment of provincial and municipal special funds RMB 884,000 Yuan).
4. Development of the transport industry. A total of RMB 215,200 Yuan was invested to subsidize 6 poor households to purchase one Nanjun dump truck, one Huili Brand steering wheel tractor and four Wanhu Brand steering wheel tricycles, to develop the transportation industry and increase household income. It is expected that the annual income of each household will increase by about RMB 10,000 Yuan to RMB 60,000 Yuan (the investment of provincial and municipal special funds RMB 215,200 Yuan).
5. Procurement of agricultural tractors. The invested unit has self-raised RMB 180,000 Yuan to support Fengqiao Nongchang Village to collectively purchase a farm tractor for free use by poor households, to promote the development of agricultural production by poor households and increase household income, and the tractor has been put into use normally in the form of renting. (The invested unit has self-raised RMB 180,000 Yuan). (III) Implementation of employment poverty alleviation
Efforts should be made to change the concept of poor households, to abandon the idea of waiting, relying on and wanting, and to encourage poor households with labor force to achieve poverty relief through working hard. Actively develop agricultural technology and labor skills training. Conduct technical training and transfer labor force technical training on cattle breeding and photovoltaic power generation project for the poor households in Houhai Village. In addition, they actively sent labor skills and technology, work entrepreneurs information and policies for benefiting the people to the poor households, as well as publicized social security policies, etc., to the poor households, to strengthen the guidance of the surplus labor force in poor families, actively facilitate the transfer of surplus labor force and promote poverty alleviation through labor income, and good benefits have received. Now for the poor households in Houhai Village, if there was surplus labor in their families, they basically went out to work and earn income through work, which greatly promoted the task of poverty alleviation. At the beginning of the year, plans for the transfer of labor employment and placement of public welfare position were established. During the actual implementation of the transfer employment, close employment, self-employment and public-welfare position for poor households with labor, the number of people in placement
Guangdong Electric Power Development Co., Ltd. 2017Annual Report is planned to reach more than85% in the beginning of the year.
(IV) Implementation of financial poverty alleviation
Actively promote financial poverty alleviation, formulate implementation programs for poverty alleviation micro-credit work and conduct extensive publicity and investigations. Now one poor household with small loan of RMB 8,000 Yuan has been implemented to help develop family business.
(V) Implementation of poverty alleviation projects such as giving warmth
1. Organization of warm consolation activities. RMB 24,800 Yuan was invested to carry out the Mid-Autumn Festival and Spring Festival condolences, to send the warmth of the party and the government for the poor households (The invested unit has self-raised RMB 24,480 Yuan).
2. Solving the poverty problem caused by disease for poor households. RMB 8,000 Yuan was invested to subsidize poor households with severe illnesses to diagnose and treat, so as to promote the poor households caused by disease to realize poverty alleviation. In addition, the assistance unit -- Zhanjiang Second People's Hospital has been given full play to its advantage in medical resources and organized medical activities to send medicines and drugs and treat freely in Houhai Village based on the actual situation. (The invested unit has self-raised RMB 8,000 Yuan)
3. RMB 20,000 Yuan was invested to newly build Houhai Village publicity column to further strengthen party affairs publicity and targeted poverty alleviation publicity work (The invested unit has self-raised RMB 20,000 Yuan).
4. RMB 30,000 Yuan was invested to subsidize the removal of environmental household waste in Houhai Village to promote the construction of civilized demonstration village. (The invested unit has self-raised RMB 30,000 Yuan).
As of December 2017, 26 poor households in the Houhai Village had completed poverty alleviation, and 124 persons had reached the standard of poverty alleviation, accounting for32.6% of the original poor households in Houhai Village.
(3)Targeted Poverty Alleviation Result
||||
|-|-|-|
|Index|Measurement unit|Quantity / Status|
|I. General situation|——|——|
|Thereinto： 1.Capital|(RMB’0000)|154.3|
|2. Cash supplies|(RMB’0000)|33.08|
|3. Ecological protection to poverty alleviation|Person|969|
|II.Breakdown Input|——|——|
|1. Poverty alleviation by industrial development|——|——|
|||Poverty Alleviation by agriculture and forestry;|
|Among them: 1.1 Project type of poverty alleviation by|||
||——|poverty alleviation through tourism; poverty|
|industrial development|||
|||alleviation from asset income|
|1.2 Number of poverty alleviation projects in industrial|||
||a|8|
|development|||
|1.3 Investment amount of industrial development|||
||(RMB’0000)|39.83|
|poverty alleviation project|||
|1.4 The number of poverty population who had been|||
||Person|485|
|helped to create a file|||
|2. Poverty alleviation by transfer employment|——|——|
|Among them: 2.1 Investment amount of vocational skill|||
||(RMB’0000)|0.14|
|training|||
|2.2 Number of people of vocational skill training|Person|31|
|2.3 Quantity of employment of poverty population who|||
||Person|15|
|had been helped create a file|||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||
|-|-|-|
|3. Poverty alleviation by relocation|——|——|
|4. Educational poverty alleviation|——|——|
|Among them: 4.1 Investment amount of subsidizing|||
||(RMB’0000)|17.41|
|poverty students|||
|4.2 Number of subsidized poverty students|Person|134|
|4.3 Improving the investment amount for education in|||
||(RMB’0000)|0.3|
|poor areas|||
|5. Health poverty alleviation|——|——|
|Among them: 5.1 Investment amount for medical and|||
||(RMB’0000)|1.93|
|health resources in poor areas|||
|6. Ecological protection poverty alleviation|——|——|
|7. Guarantee of all the details|——|——|
|8. Social poverty alleviation|——|——|
|8.2 Investment amount of fixed-point poverty|||
||(RMB’0000)|35|
|alleviation|||
|9. Other projects|——|——|
|Among them: 9.1 Number of project|a|4|
|9.2 Investment amount|(RMB’0000)|27.5|
|9.3 Number of poverty population who had been helped|||
||Person|80|
|to create a file|||
|III. Awards (Content and level)|——|——|
|||Dabu Power Generation Company won the|
|||Meizhou Poverty Alleviation Bronze Award in 2016|

（4）Subsequent targeted poverty alleviation program
The year 2018 is the critical year as the connection link for “targeted poverty alleviation and overcoming in three years”. The company and holding subsidiaries will continue implementing the province, city andcounty’s relevant regulations on the targeted poverty alleviation, and find out ways for targeted poverty alleviation based on the local conditions. Firstly, insist the party and style construction, promote the ideological building of the assistance object village “two committees” members and intensify the results of “two studies and one action” learning activity. Secondly, insist study and improve capacity, insist the thorough learning on the spirit of Xi Jinping series important speeches, the spirit of relevant targeted poverty alleviation papers, the village business knowledge and the way to communicate with the public and improve further the work capacity for people. Thirdly, intensify the key points and promote the implementation, each poverty alleviation work team will continue focusing on the targeted poverty alleviation, grasp the poverty alleviation central work and coordinate overall and implement relevant work. For the poor households poverty alleviation projects and village group projects listed in the filing and issuing cards, obtain positively support from relevant authority subject to the formulated target tasks, assist the assistance object villages and poor households in implementing the poverty alleviation projects and guarantee the overall completion of the poverty alleviation target tasks in the practical style.
3. Information on environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection
Yes
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Main|||||||||
|||||Emission|Emission|Implemented||Verified||
|Company or|pollutant and||Emission||||Total||Excessive|
|||Emission||port|concentrat|pollutant||total||
|subsidiary|specific||port||||emission||emission|
|||way||distribution|ion|emission||emission||
|name|pollutant||number||||(t)||condition|
|||||condition|(mg/Nm3)|standards||(t)||
||name|||||||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||Emission||Not||
||Smoke||||5.05||123.75||No|
|||||||Standard of Air||approved||
|||Concentra||||||||
|||||||Pollutants for||Not||
||SO2|ted|||20.59||504.44||No|
|Shajiao A||||Within the||Thermal Power||approved||
|||emission|2|||||||
|power plant||||factory||Plants||||
|||through||||||||
|||||||(GB13223-2011)||Not||
||NOX|chimney|||31.92||789.99||No|
|||||||special emission||approved||
|||||||limit||||
||Smoke||||2.9|Emission|34.79|593|No|
||SO2||||12.9|Standard of Air|153.86|1447|No|
|||Concentra||||||||
|||||||Pollutants for||||
|||ted||||||||
|Dapu Power||||Within the||Thermal Power||||
|||emission|2|||||||
|Plant||||factory||Plants||||
||NOX|through|||26.1||310.16|1502|No|
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission||||
|||||||limit||||
||Smoke||||9.69|Emission|154.05|765|No|
||SO2||||70.08|Standard of Air|1122.4|2046|No|
|||Concentra||||||||
|Zhanjiang||||||Pollutants for||||
|||ted||||||||
|Zhongyue||||Within the||Thermal Power||||
|||emission|2|||||||
|Enerty Co.,||||factory||Plants||||
||NOX|through|||55.16||824.92|1587|No|
|Ltd.||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission||||
|||||||limit||||
||||||330MW|||||
||||||unit|||||
||||||9.25；|||||
||Smoke||||||139.02|717.78|No|
||||||600MW|||||
||||||unit|Emission||||
||||||3.72|Standard of Air||||
|Guangdong||Concentra||||||||
||||||330MW|Pollutants for||||
|Shaoguan||ted||||||||
|||||Within the|unit100.1|Thermal Power||||
|Yujiang Power||emission|2|||||||
||SO2|||factory|6；|Plants|1128.34|2303.55|No|
|Generation||through||||||||
||||||600MW|(GB13223-2011)||||
|Co., Ltd.||chimney||||||||
||||||unit12.24|special emission||||
||||||330MW|limit||||
||||||unit106.6|||||
||NOX||||1；||1534.93|2809.07|No|
||||||600MW|||||
||||||unit28.87|||||
||Smoke||||4.18|Emission|76|73|No|
||SO2||||34.93|Standard of Air|623|675|No|
|||Concentra||||||||
|||||||Pollutants for||||
|Zhanjiang||ted||||||||
|||||Within the||Thermal Power||||
|Electric Power||emission|2|||||||
|||||factory||Plants||||
|Co., Ltd.|NOX|through|||53.40||965|878|No|
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission||||
|||||||limit||||
||Smoke||||4.34|Emission|207.67|1770|No|
||SO2||||30.69|Standard of Air|1868.47|6502|No|
|||Concentra||||||||
|Guangdong||||||Pollutants for||||
|||ted||||||||
|Yudean Jinghai||||Within the||Thermal Power||||
|||emission|2|||||||
|Power General||||factory||Plants||||
||NOX|through|||43.49||2119.43|4687|No|
|Co., Ltd.||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission||||
|||||||limit||||
|Guangdong|Smoke|Concentra|2|Within the|6.71|Emission|227.42|227.42|No|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Red Bay|SO2|ted||factory|26.19|Standard of Air|866.32|890.10|No|
|Power General||emission||||Pollutants for||||
|Co., ltd.||through||||Thermal Power||||
|||chimney||||Plants||||
||NOX||||35.41||1332.53|1332.53|No|
|||||||(GB13223-2011)||||
|||||||special emission||||
|||||||limit||||
||Smoke||||6.77|Emission|87.04|256.75|No|
||SO2||||38.01|Standard of Air|341.58|1739.95|No|
|||Concentra||||||||
|||||||Pollutants for||||
|Maoming||ted||||||||
|||||Within the||Thermal Power||||
|Zhenneng||emission|2|||||||
|||||factory||Plants||||
|thermal power|NOX|through|||47.17||683.48|1263.29|No|
|||||||(GB13223-2011)||||
|Plant||chimney||||||||
|||||||special emission||||
|||||||limit||||
||Smoke||||6.50|Emission|189.36|184.37|No|
||SO2||||20.88|Standard of Air|662.02|691.30|No|
|||Concentra||||||||
|||||||Pollutants for||||
|||ted||||||||
|Pinghai Power||||Within the||Thermal Power||||
|||emission|2|||||||
|plant||||factory||Plants||||
||NOX|through|||47.52||1372.59|1388.88|No|
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission||||
|||||||limit||||
|||||||Emission||||
|||||||Standard of Air||||
|||Concentra||||||||
|||||||Pollutants for||||
|||ted||||||||
|Qianwan LNG||||Within the||Thermal Power||||
||NOX|emission|3||34.02||513.73|513.73|No|
|power plant||||factory||Plants||||
|||through||||||||
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission||||
|||||||limit||||
|||||||Emission||||
|||||||Standard of Air||||
|||Concentra||||||||
|||||||Pollutants for||||
|||ted||||||||
|Huizhou LNG||||Within the||Thermal Power||||
||NOX|emission|3||31.78||719|719|No|
|power plant||||factory||Plants||||
|||through||||||||
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission||||
|||||||limit||||

Prevention and control of pollution facilities construction and operation
Within the report period, the company responds positively to requirements of the newest environmental protection policies, strengthens the operation adjustment of the desulfurization and denitrification system and equipment maintenance management, intensifies the transformation of the energy-saving technologies and dust-cleaning equipment, improves the equipment operation efficiency, decrease the smoke and dust discharging concentration and guarantee compliance of each pollutant emission with the national and local environmental protection requirements. In accordance with the national environmental protection plan, each power plant of the company implements positively requirements of Coal-fired Power Energy Saving and Emission Reduction Upgrading and Transform Action Plan (2014-2020) and National Energy Administration Comprehensive Division Notice about Decomposition and Implementation of Coal-fired Power Energy Saving and Emission Reduction Upgrading and Transform Target Tasks, etc. and promotes the ultra-low emission transformation project.
During the reporting period, the company invested a total of 2.416 billion yuan to complete the ultra-low emission
reform of all its coal-fired units.the pollutant emission concentration declines sharply on the original basis of the
environment-protection emission standards which reflects the company determination of performing social
Guangdong Electric Power Development Co., Ltd. 2017Annual Report responsibilities and the environment protection duties and emissions.
Conditions of environmental impact assessment and other environmental protection administrative licensing of construction projects
The company's construction projects that have been approved by government agencies have all undergone environmental impact assessments and have obtained other necessary environmental protection administrative licenses.
Emergency plan for emergency environmental incidents
Combining with the Environmental Protection Law of the People's Republic of China and the Opinions of the Ministry of Environmental Protection on Strengthening Environmental Emergency Management Work and other laws and regulations on the monitoring of environmental risks, thecompany’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, thecompany’s subordinate power generation companies organized annual environmental self-monitoring programs in accordance with the national Administrative Measures on Automatic Monitoring of Pollution Sources (No. 28 order of State Environmental Protection Administration) and other laws and regulations, and conducted self-monitoring of the environment in accordance with the monitoring program, and announced its own monitoring results in Guangdong Province's key pollution source regulatory information platform and the national pollution source monitoring information and sharing platform. Both the announced rate and completion rate had reached100%.
Other environmental information that should be disclosed
None
XIX. Other material events
□Applicable√ Not applicable
No such cases in the reporting period.
XX. Material events of subsidiaries
√ Applicable□ Not applicable
The company's holding subsidiary, Guangdong Yudean Pinghai Power Plant Co., Ltd, received the “Administrative Punishment Decision” issued by the Guangdong Provincial Ocean& Fisheries Bureau on November 14, 2016 (No. 019-2016 Yuehai Executive Punishment), and the punishment decision “ordered Pinghai to return the illegally occupied sea areas and restore the sea areas to their original state, and sentenced 10 times
Guangdong Electric Power Development Co., Ltd. 2017Annual Report fines to the use fees of sea areas that shall be imposed within the period of that illegally occupied 16.3947 hectares, amounted to RMB 172,144,350.00” for that Pinghai Power Plant carried out the site leveling and bank protection work of Pinghai power plant without approval and did the reclamation of 16.3947 hectares and its behavior violated the provisions of Article 3 of the Law of the People's Republic of China on the Administration of the Use of Sea areas. Based on the audited net profit of RMB 3.238 billion attributable to the shareholders of the parent company in 2015, the amount involved in the above-mentioned administrative penalty affects the net profit attributable to shareholders of the parent company of about 77.4 million-which accounts for2.39% of the net profit of the most recently audited period.
Pinghai Power Plant disagreed with the punishment measures of the “Administrative Punishment Decision" and applied for administrative reconsideration to the People's Government of Guangdong Province on January 16, 2017 in accordance with Article 6 of the "Administrative Reconsideration Law of the People's Republic of China". On June 16, 2017, the People's Government of Guangdong Province issued a decision on the administrative reconsideration, which stated “According to the provisions of Item 1 of Paragraph 1 of Article 28 of the Administrative Reconsideration Law of the People's Republic of China, the Administrative Punishment Decision (No. 019-2016 Yuehai Executive Punishment) made by therespondent’s Provincial Department of Ocean and Fisheries is maintained.” Pinghai Power Plant disagreed with the aforementioned administrative reconsideration decision and filed an administrative litigation to the Guangzhou Maritime Court on July 18, 2017. On December 28, 2017, the Guangzhou Maritime Court issued an administrative decision, stated “In accordance with the provisions of Article 69 of the Administrative Procedure Law of the People's Republic of China, the decision is as follows: the claim of the plaintiff Guangdong Huizhou Pinghai Power Plant Co., Ltd was rejected”. Pinghai Power Plant disagreed with the verdict, and lodged an appeal to the Guangdong Provincial Higher People's Court against the verdict, which has not yet been determined. According to the net profit of RMB 937 million attributable to shareholders of the parent company in the previous year (2016), the amount involved in the above lawsuit affects the net profit attributable to shareholders of the parent company of approximately RMB 77.4 million, which accounts for approximately 8.26% of the net profit of the most recently audited period, which does not constitute a major impact on the Company.
As of the disclosure date of this report, the above-mentioned administrative punishment and the administrative litigation matter are still in the process of multi-party communication and coordination. According to the “Asset Purchase Agreement by Share Issuance” signed between Yudean Group and the Company in 2012, Yudean Group shall compensate the Company for the actual loss caused by the above-said matter in accordance with the result of the matter.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report VI. 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 Change||
||Amount|Proportion|||Capitaliz|||||
||||||ation of|||||
||||Share|Bonus|||Subto||Proportio|
||||||common|Other||Quantity||
||||allotment|shares|||tal||n|
||||||reserve|||||
||||||fund|||||
|I. Share with conditional||||||||||
||1,897,966,823|36.15%||||||1,897,966,823|36.15%|
|subscription||||||||||
|2. State-owned legal person||||||||||
||1,893,342,621|36.06%||||||1,893,342,621|36.06%|
|shares||||||||||
|3.Other domestic shares|4,624,202|0.09%||||||4,624,202|0.09%|
|Of which：Domestic legal||||||||||
||4,620,666|0.09%||||||4,620,666|0.09%|
|person shares||||||||||
|Domestic natural person||||||||||
||3,536|0 %||||||3,536|0 %|
|shares||||||||||
|II. Shares with unconditional||||||||||
||3,352,317,163|63.85%||||||3,352,317,163|63.85%|
|subscription||||||||||
|1.Common shares in RMB|2,553,909,163|48.64%||||||2,553,909,163|48.64%|
|2.Foreign shares in domestic||||||||||
||798,408,000|15.21%||||||798,408,000|15.21%|
|market||||||||||
|III. Total of capital shares|5,250,283,986|100 %||||||5,250,283,986|100 %|

 Reasons for share changed:
□ Applicable√ Not applicable
Approval of Change of Shares
□ Applicable√ Not applicable
Ownership transfer of share changes
□ Applicable√ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security regulators
□ Applicable√Not applicable
2. Change of shares with limited sales condition
□ Applicable√Not applicable
Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable√Not applicable
Guangdong Electric Power Development Co., Ltd. 2017Annual Report 2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable√Not applicable
3.About the existingemployees’ shares
□Applicable√Not applicable
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Total|||
|Total number of|||||||||||preferred sharehold|||
||||Total shareholders at||||The total number of prefe|||||||
|common|||||||||||ers at the end of the|||
||||the end of the month||||rred shareholders voting r|||||||
|shareholders at the|101,388|||||99,743|||0||month from the date||0|
||||from the date of||||ights restored at period-e|||||||
|end of the|||||||||||of disclosing the|||
||||disclosing||||nd(if any)(See Notes 8)|||||||
|reporting period|||||||||||annual report(if|||
||||||||||||any)(See Notes 8)|||
|Particulars about shares held above 5% by shareholders or top ten shareholders||||||||||||||
|||||||||||Amount of||Number of share||
|||||Proportion|Number of||Changes in|Amount of||||||
|Shareholders||Nature of||||||||un-restricte||pledged/frozen||
|||||of shares|shares held at||reporting|restricted||||||
|||shareholder||||||||d shares||State of||
|||||held（%）|period -end||period|shares held|||||Amount|
|||||||||||held||share||
|Guangdong YudeanGroup Co., Ltd.||State-ownedlegal person||67.39%|3,538,005,285|||1,893,342,621||||||
|China SecuritiesFinance Co., Ltd.||State-ownedlegal person||2.78%|145,748,980|||||||||
|Shenzhen GuangfaElectric PowerInvestment Co., Ltd.||State-ownedlegal person||2.22%|116,693,602|||||||||
|Guangdong ElectricPower DevelopmentCorporation||State-ownedlegal person||1.80%|94,367,341|||||||||
|Harbin Daoli DistrictCharity Foundation||DomesticNon-Stateowned legalperson||0.80%|42,018,461||26,577,153|||||||
|Li Zhuo||DomesticNatural person||0.60%|31,703,843||10,341,258|||||||
|National SocialSecurity Fund 103portfolio||DomesticNon-Stateowned legalperson||0.44%|22,994,982||22,994,982|||||||
|Harbin Hali IndustryCo., Ltd.||DomesticNon-Stateowned legalperson||0.42%|22,068,565||19,084,465|||||||
|Zheng Jianqun||DomesticNatural person||0.41%|21,681,998||21,681,998|||||||
|CHINA INT'LCAPITAL CORPHONG KONGSECURITIES LTD||OverseasLegal person||0.29%|15,316,067||-6,269|||||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||
|-|-|-|-|
||The fourth largest shareholder Guangdong Electric Power Development Corporation is the|||
|Explanation on associated relationship|wholly-owned subsidiaries of the largest shareholder Yudean Group. These two companies|||
|among the aforesaid shareholders|have relationships; whether the other shareholders have relationships or unanimous acting|||
||was unknown|||
|Shareholding of top 10 shareholders of unrestricted shares||||
||Quantity of unrestricted shares held at the end of the|Share type||
|Name of the shareholder||||
||reporting period|Share type|Quantity|
|Guangdong Yudean Group Co., Ltd.|1,644,662,664|RMB Common||
|||shares||
|China Securities Finance Co., Ltd.|145,748,980|RMB Common||
|||shares||
|Shenzhen Guangfa Electric PowerInvestment Co., Ltd.|116,693,602|RMB Common||
|||shares||
|Guangdong Electric PowerDevelopment Corporation|94,367,341|RMB Common||
|||shares||
|Harbin Daoli District CharityFoundation|42,018,461|RMB Common||
|||shares||
|Li Zhuo|31,703,843|RMB Common||
|||shares||
|National Social Security Fund 103portfolio|22,994,982|RMB Common||
|||shares||
|Harbin Hali Industry Co., Ltd.|22,068,565|RMB Common||
|||shares||
|Zheng Jianqun|21,681,998|Foreign shares||
|||placed in||
|||domestic||
|||exchange||
|CHINA INT'L CAPITAL CORPHONG KONG SECURITIES LTD|15,316,067|Foreign shares||
|||placed in||
|||domestic||
|||exchange||
|Explanation on associated relationship||||
|or consistent action among the top 10||||
||The fourth largest shareholder Guangdong Electric Power Development Corporation is the|||
|shareholders of non-restricted||||
||wholly-owned subsidiaries of the largest shareholder Yudean Group. These two companies|||
|negotiable shares and that between the||||
||have relationships; whether the other shareholders have relationships or unanimous acting|||
|top 10 shareholders of non-restricted||||
||was unknown.|||
|negotiable shares and top 10||||
|shareholders||||
||The Fifth largest shareholder Harbin Daoli District Charity Foundation holds112,347 A|||
||shares of the Company through stock account with credit transaction and guarantee and|||
||holds41,906,114 A shares through ordinary stock account, hold 42,018,461 shares of the|||
||Company's stock totally.|||
|Explanation on shareholders|The Sixth largest shareholder Li Zhuo holds196,520 A shares of the Company through|||
|participating in the margin trading|stock account with credit transaction and guarantee and holds31,507,323 A shares through|||
|business(if any )(See Notes 4)|ordinary stock account, hold31,703,843 shares of the Company's stock totally.|||
||The Eighth largest shareholder Harbin Hali Industry Co., Ltd. holds1,125,920 A shares of|||
||the Company through stock account with credit transaction and guarantee and holds|||
||20,942,645 A shares through ordinary stock account, hold 22,068,565 shares of the|||
||Company's stock totally.\|||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy–back agreement dealing in reporting period.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report 2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
||||||
|-|-|-|-|-|
||Legal||||
|Name of the Controlling||Date of|||
||representative/||Organization code|Principal business activities|
|shareholder||incorporation|||
||Leader||||
|||||Management and sales of the|
|||||electricity investment construction|
|||||operation management，electricity|
|||||power(Thermal Power)，|
|||||The industry of transportation|
|Guangdong Yudean Group|||||
||Li Zhuoxian|August 3,2001|91440000730486022G|resources environmental protection，|
|Co., Ltd.|||||
|||||new source of energy electricity|
|||||investment; investment planning and|
|||||consulting ; information consulting|
|||||service; sales of production|
|||||materials.|
|The equity of the controlling|||||
|shareholder in other domestic|||||
|and foreign listed companies|Unknown||||
|held or partly held by it in the|||||
|report period|||||

Change of the actual controller in the reporting period
□Applicable√Not applicable
Nil
3．Information about the controlling shareholder of the Company
Actual controllernature：Local state owned assets management
Actual controllertype：Legal person
||||||
|-|-|-|-|-|
||Legal||||
|Name of the controlling||Date of|||
||representative/per||Organization code|Principal business activities|
|shareholder||establishment|||
||son in charge||||
|||||As the special institution directly|
|State-owned Assets supervision||||subordinate to Guangdong|
|||||Provincial People's Government,|
|and administration Commission|||||
||Li Cheng|June 26,2004|114400007583361658|performed the obligation of|
|of Guangdong|||||
|Provincial People’s Government||||provincial state-asset contributor|
|||||entrusted by the provincial|
|||||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
Guangdong Electric Power Development Co., Ltd. 2017Annual Report The actual controller controls the company by means of trust or managing the assets in other way
□Applicable√Not applicable
4.Particulars about other legal person shareholders with over10% share held
□Applicable√Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party and Other Commitment Subjects
□Applicable√Not applicable
Guangdong Electric Power Development Co., Ltd. 2017Annual Report VII. Situation of the Preferred Shares
□ Applicable√Not applicable
The Company had no preferred shares in the reporting period.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Amount of shares|Amount of shares|||
||||||||Shares held at the||||Shares held at|
|||Office|||Starting date|Expiry date of||increased at the|decreased at the|Other changes||
|Name|Positions||Sex|Age|||year-begin||||the year-end|
|||status|||of tenure|tenure||reporting period|reporting period|increase/decrease||
||||||||(share)||||(share)|
|||||||||(share)|(share)|||
||Board||||August 25,|September||||||
|Huang Zhenhai||In office|Male|55||||||||
||chairman||||2016|18,2020||||||
||Vice Board||||September|September||||||
|Yao Jiheng||In office|Male|52||||||||
||chairman||||18,2017|18,2020||||||
||General||||January|September||||||
|Yao Jiheng||In office|Male|52||||||||
||Manager||||16,2014|18,2020||||||
||||||September|September||||||
|Rao Subo|Director|In office|Male|53||||||||
||||||18,2017|18,2020||||||
||||||September|September||||||
|Wang Jin|Director|In office|Male|54||||||||
||||||18,2017|18,2020||||||
||||||September|September||||||
|Wen Lianhe|Director|In office|Male|49|||2,830||||2,830|
||||||18,2017|18,2020||||||
||||||September|September||||||
|Wen Shufei|Director|In office|Male|53||||||||
||||||18,2017|18,2020||||||
||||||September|September||||||
|Chen Ze|Director|In office|Male|48||||||||
||||||18,2017|18,2020||||||
||||||September|September||||||
|Zhou Xian|Director|In office|Male|44||||||||
||||||18,2017|18,2020||||||
||Employee||||September|September||||||
|Chen Changlai||In office|Male|54||||||||
||director||||18,2017|18,2020||||||
||||||September|September||||||
|Zhang Xueqiu|Director|In office|Male|51||||||||
||||||18,2017|18,2020||||||
||Independent||||May 20,|September||||||
|Sha Qilin||In office|Male|57||||||||
||director||||2014|18,2020||||||
||Independent||||May 20,|September||||||
|Shen Hongtao||In office|Female|50||||||||
||director||||2016|18,2020||||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
||Independent||||May 20,|September|||
|Wang Xi||In office|Male|47|||||
||director||||2016|18,2020|||
||Independent||||September|September|||
|Ma Xiaoqian||In office|Male|53|||||
||director||||18,2017|18,2020|||
||Independent||||September|September|||
|Yin Zhongyu||In office|Male|48|||||
||director||||18,2017|18,2020|||
||Chairman of the||||||||
||||||August 14,|September|||
|Zhang Dewei|Supervisory|In office|Male|56|||||
||||||2012|18,2020|||
||Committee||||||||
||||||May 18,|September|||
|Zhao Li|Supervisor|In office|Female|45|||||
||||||2011|18,2020|||
||Independent||||May 20,|September|||
|Zhu Weiping||In office|Male|60|||||
||Supervisor||||2014|18,2020|||
||Independent||||May 20,|September|||
|Jiang Jinsuo||In office|Male|49|||||
||Supervisor||||2014|18,2020|||
||Employee||||May 15,|September|||
|Lin Weifeng||In office|Male|49|||4,716|4,716|
||supervisor||||2002|18,2020|||
||Employee||||May 20,|September|||
|Li Qing||In office|Male|40|||||
||supervisor||||2014|18,2020|||
||||||January 16,|September|||
|Yang Xuanxing|Deputy GM|In office|Male|52|||||
||||||2014|18,2020|||
||||||July 28,|September|||
|Liu Hui|Deputy GM|In office|Female|52|||||
||||||2010|18,2020|||
||Deputy GM,||||||||
||||||September 18,|September|||
|Liu Wei|Finance|In office|Male|38|||||
||||||2017|18,2020|||
||manager||||||||
||Board||||October 24,|September|||
|Liu Wei||In office|Male|38|||||
||secretary||||2006|18,2020|||
||||||December 30,|September 18,|||
|Li Yanxu|Director|Dimission|Male|51|||||
||||||2016|2017|||
||||||May 16,|September 18,|||
|Hong Rongkun|Director|Dimission|Male|60|||||
||||||2002|2017|||
||||||Aptil 29,|September 18,|||
|Gao Shiqiang|Director|Dimission|Male|60|||||
||||||2005|2017|||
||||||May 18,|September 18,|||
|Li Mingliang|Director|Dimission|Male|53|||||
||||||2011|2017|||
||||||December 30,|September 18,|||
|Xu Ping|Director|Dimission|Male|54|||||
||||||2016|2017|||
|Yang Xinli|Director|Dimission|Male|55|May 20,|September 18,|||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||2014|2017||||||
||Independent||||May 18,|September 18,||||||
|Liu Tao||Dimission|Male|46||||||||
||director||||2011|2017||||||
||Independent||||December 8,|September 18,||||||
|Zhang Hua||Dimission|Male|52||||||||
||director||||2011|2017||||||
||Independent||||May 20,|September 18,||||||
|Mao Fugen||Dimission|Male|54||||||||
||director||||2014|2017||||||
||Deputy GM,|||||||||||
||||||September 12,|September 18,||||||
|Li Xiaoqing|Finance|Dimission|Female|46||||||||
||||||2006|2017||||||
||manager|||||||||||
|Total|--|--|--|--|--|--|7,546|0|0|0|7,546|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report II. Change in shares held by directors, supervisors and senior executives
√ Applicable□Not applicable
||||||
|-|-|-|-|-|
|Name|Positions|Types|Date|Reason|
|||Leave while office|||
|Li Yanxu|Director||September 18,2017|Expired|
|||term end|||
|||Leave while office|||
|Hong Rongkun|Director||September 18,2017|Expired|
|||term end|||
|||Leave while office|||
|Gao Shiqiang|Director||September 18,2017|Expired|
|||term end|||
|||Leave while office|||
|Li Mingliang|Director||September 18,2017|Expired|
|||term end|||
|||Leave while office|||
|Xu Ping|Director||September 18,2017|Expired|
|||term end|||
|||Leave while office|||
|Yang Xinli|Director||September 18,2017|Expired|
|||term end|||
|||Leave while office|||
|Liu Tao|IndependentDirector||September 18,2017|Expired|
|||term end|||
|||Leave while office|||
|Zhang Hua|IndependentDirector||September 18,2017|Expired|
|||term end|||
|||Leave while office|||
|Mao Fugen|Ding Yougang||September 18,2017|Expired|
|||term end|||
||Deputy GM, Finance|Leave while office|||
|Li Xiaoqing|||September 18,2017|Expired|
||manager|term end|||

III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
Mr. Huang Zhenhai: male, born in November 1962, member of the Communist Party of China, Han nationality, Guangdong Dapu people, college degree, senior engineer. He had served as deputy director of inspection department of Guangdong Commodity Inspection Bureau, vice-president of China Certification& Inspection (Group) Co., Ltd, president and general manager of the Testing Technology Co., Ltd of China Certification& Inspection (Group) Co., Ltd, served as president, general manager, deputy secretary of party committee and other positions of Guangdong Holdings Limited. Currently, he is the president, general manager and deputy secretary of party committee of Guangdong Yudean Group.
Mr. Yao Jiheng, born in November 1965. Zhejiang University Bachelor of Engineering, Master of Engineering, Cheung Kong Graduate School of Business Administration Master of Business Administration. Senior engineer (professor level). He is currently a member of the Party Committee of Guangdong Yudean Group Co., Ltd. and general manager of Guangdong Electric Power Development Co., Ltd. Former director of the Yunfu Power Plant; Huangpu Power Plant assistant, deputy director; Shajiao A power plant director, party secretary; Guangdong Yudean Group Co., Ltd. Party committee member, deputy chief engineer and safety supervision and production technology Minister of Guangdong Yudean Group Co., Ltd.
Mr. Rao Subo, born in May 1964, is bachelor of Engineering of Chongqing University and graduate of the Central Party School and is a Senior Engineer (Professor Level). He is currently a member of the disciplinary committee, deputy chief engineer and minister of safety supervision and production technology department of Guangdong
Yudean Group Co., Ltd., and head of preparation team of Yudean electric power and information technology
center. He once served as deputy chief engineer of Shaoguan Power Plant, deputy director of the Department of
Biotechnology of Guangdong Electric Power Group Corporation, director of Department of Biotechnology and
Guangdong Electric Power Development Co., Ltd. 2017Annual Report Safety Supervision of Guangdong Yudean Assets Management Co., Ltd., and director of Department of Biotechnology and Safety Supervision and deputy chief engineer of Guangdong Yudean Group Co., Ltd., and director of the Shajiao A Power Plant and party committee secretary.
Mr. Wang Jin was born in May 1963. He holds a Bachelor of Engineering from Nanjing Institute of Technology and a Master of Business Administration from Jinan University. He is now a senior engineer, and currently serves as deputy chief engineer and manager of the management department and secretary of the Party branch of Guangdong Yudean Group Co., Ltd. He once served as director of boiler maintenance workshop in Shaoguan Power Plant, director of Engineering Technology Department of Zhuhai PowerPlant’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.
Mr. Wen Lianhe was born in October 1968 and graduated from Harbin Institute of Technology. He is now senior engineer (professor level) and currently deputy chief engineer and director of Strategic Development Department of Guangdong Yudean Group Co., Ltd. He once served as deputy minister of Biotechnology and Safety Supervision Department of Guangdong Yudean Group Co., Ltd., general manager and party committee secretary of Guangdong Honghai Bay Power Generation Co., Ltd.
Ms. Wen Shufei, born in August 1964, is Bachelor of Economics from Zhongnan University of Finance and Economics. She is an accountant and currently serves as deputy chief accountant and head of financial department of Guangdong Yudean Group Co., Ltd. She once served as deputy division chief and division chief of the Second Business Office of Guangdong Provincial Finance Ombudsman Office of Ministry of Finance, deputy group leader of preparatory group, deputy general manager, party branch secretary and general manager of Guangdong Yudean Finance Co., Ltd.
Mr. Chen Ze was born in January 1969. He holds a bachelor degree from Chongqing University and a doctoral degree in management from Huazhong University of Science and Technology. He is senior economist, corporate counsel (practicing qualifications), and currently serves as the general counsel, secretary of the board of directors, and director of legal affairs and capital operation department of Guangdong Yudean Group Co., Ltd. He once served as deputy director of the general department and director of capital operation and legal affairs department of Guangdong Yudean Group Co., Ltd., general manager and party branch secretary of Guangdong Yudean Shipping Co., Ltd.
Mr. Zhou Xi'an, born in March 1973, is Bachelor of Engineering from Zhejiang University, Master of Engineering from Huazhong University of Science and Technology. He is senior engineer and currently the director of the general department and party branch secretary of Guangdong Yudean Group Co., Ltd. He used to be deputy chief engineer and deputy director of Changhu Hydropower Plant, deputy general manager of Guangdong Yudean Changhu Power Generation Co., Ltd., general manager and party committee secretary of Guangdong Yudean Qingxi Power Generation Co., Ltd., general manager and party committee secretary of Guangdong Yudean Nanshui Water Power Generation Co., Ltd.
Mr. Chen Changlai was born in April 1963. He has a correspondence bachelor's degree in economics and management from Guangdong Provincial Party School, and a master's degree in business administration from South China University of Technology. He is senior political engineer and currently the director and party committee secretary of Shajiao A Power Plant. He used to serve as the director of the Beijing office of Guangdong
Guangdong Electric Power Development Co., Ltd. 2017Annual Report Yudean Group Co., Ltd., party committee secretary,discipline inspection commission secretary and labour union chairman of the Shajiao A Power Plant.
Mr. Zhang Xueqiu, born in January 1966. Bachelor of Science, Xiangtan University, Master of Management, Jinan University. Senior economist. He is currently the Deputy General Manager and Secretary of the Board of Directors of Guangzhou Development Group Co., Ltd. He was the general manager of Guangzhou Development Group Co., Ltd.
Mr. Sha Qilin, born in October 1960. Master of Wuhan Institute of Technology. Associate Professor, practicing lawyer. He is currently a lawyer of Guangdong Nanguo Desai Law Firm, member of the Professional Committee of Financial and Securities of Guangzhou Lawyers Association, and concurrently an independent director of Guangdong Electric Power Development Co., Ltd. He was an associate professor of Wuhan Institute of Technology (now Wuhan University of Technology), head of investment and development department of China Huandao Group Company, deputy chief engineer of group and chief manager of overseas listed leading group. Ms. Shen Hongtao, was born in August 1967, PhD of management of Xiamen University, professor, doctoral supervisor. Currently, she is a professor in accounting department of Jinan University, and concurrently serves as member of Accounting Society of China, Standing member of Accounting Association of Guangdong Province, editorial board member of China Journal of Accounting Studies, editorial board member of Accounting Study, independent director of Rising Nonferrous Metals Co.,Ltd, independent director of Polyrocks Chemical Co.,Ltd and independent director of Guangdong Electric Power Development Co.,Ltd. She had served as deputy section head of Guangdong Provincial People's Government, consultant of PwC International and vice president of International College of Jinan University.
Mr. Wang Xi, was born in April 1970, PhD of economics of Sun Yat-sen University, professor, doctoral supervisor, Specially-appointed Professor of Pearl-river Scholar. Currently, he serves as professor of Lingnan School of Yat-sen University and Director of Institute of Economic Research of Yat-sen University, concurrently serves as editorial board member of The World Economy of Chinese Academy of Social Sciences, Deputy Secretary-General and Standing member of China Institute of International Finance, Standing member of China Society of World Economics, financial consulting expert of Guangdong Provincial People's Congress Standing Committee, independent director of Palm Garden Co.,Ltd, independent director of Guangzhou Securities Co.,Ltd, independent director of Zhuhai Rural Commercial Bank and independent director of Guangdong Electric Power Development Co.,Ltd. He had served as cadre of Agricultural Bank of China Guangdong Branch, manager of the investment department of Hainan Trust and Investment Corporation, deputy director of the Finance Department of Lingnan School of Yat-sen University, director and vice president of International Business Department of Lingnan School of Yat-sen University.
Mr. Ma Xiaoqian, born in March 1964, is Ph.D.of engineering thermophysics from South China University of Technology. He is a professor and currently serving as the director of the Key Laboratory of the Electric Power School of South China University of Technology and concurrently serving as the deputy director of teaching guiding committee of energy and power professional of high education of the Ministry of Education, the chairman of the Guangzhou Energy Institute, the outside director of Guangzhou Environmental Protection Investment Group Co., Ltd., and the independent director of Guangzhou Development Group Co., Ltd. He used to be the dean and vice president of Electric Power College of the South China University of Technology.
Mr. Yin Zhongyu was born in February 1969. He is Master of rural finance from Northwest Agricultural University. He is currently the general manager of the Great Wall SecuritiesM&A Department. He previously
Guangdong Electric Power Development Co., Ltd. 2017Annual Report served as a director of the Guotai JunanM&A business and an executive director of Shanghai Longrui Investment Consultants Company.
Mr.Zhang Dewei, born in January 1961. Guangzhou Normal University Bachelor of Science, Jinan University Master of Business Administration. Senior economist. He is currently the Minister of Audit and Supervisory Committee of Guangdong Yudean Group Co., Ltd. He served as Director of the General Manager's Office of Guangdong Electric Power Development Co., Ltd., Secretary of Board Affairs Department and Secretary of the Board of Directors, Deputy Director of the Board of Guangdong Yudean Asset Management Co., Ltd., Deputy Director of the Board of Directors of Guangdong Yudean Group Co., Deputy Minister of Legal Affairs, Deputy Minister of Capital Operations and Legal Affairs.
Ms.Zhao Li, born in October 1972. China University of Finance Bachelor of Economics, Master of Business Administration, Jinan University. senior accountant. He is currently Vice Minister of Finance of Guangdong Yudean Group Co., Ltd. Former Guangdong Yudean Asset Management Co., Ltd. Ministry of Finance production infrastructure division manager, Guangdong Yudean Group Co., Ltd. senior director of the Ministry of Finance, production finance division manager.
Mr. Lin Weifeng, born in February 1968. Bachelor of Management, Jiangxi University of Science and Technology. auditor. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, Shajiao A power plant finance minister. Former Shajiao power plant audit director, Shajiao A power plant deputy chief economist.
Mr. Li Qing, born in May 1977. Bachelor of Economics, Shanghai University of Finance and Economics. senior accountant. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, director of the audit room. Former Yunfu Power Plant Finance Department Accounting, Guangdong Yuelong Power Co., Ltd. Finance Minister Assistant.
Mr. Zhu Weiping, born in May 1957. Doctor of Economics, Jinan University. He is currently a vice president of the China Industrial Economics Society, executive vice president of the Guangdong Economic Association, Zhujiang Industrial and Guangsheng Youse Independent Director, Independent Supervisor of Guangdong Electric Power Development Co., Ltd..
Mr. Jiang Jin Suo, born in March 1968. Doctor of Management, Jinan University. Professor, Certified Public Accountant. He is currently the Deputy Director of Accounting Department of Guangdong Finance Institute, Member of Guangzhou Institute of Certified Public Accountants, Independent Supervisor of Guangdong Electric Power Development Co., Ltd.
Mr. Yang Xuanxing, born in November 1965. Bachelor of Management, Zhongshan University, Master of Business Administration, Macau University of Science and Technology. Senior Auditor. He is currently the deputy general manager of Guangdong Electric Power Development Co., Ltd. He was appointed Deputy Director of Audit Office of Guangdong Electric Power Industry Bureau, Director of Audit and Supervision Department of Guangdong Yudean Asset Management Co., Ltd., Deputy Secretary of Discipline Inspection Commission of Guangdong Yudean Group Co., Ltd., Finance Minister and Deputy Chief Accountant.
Ms. Liu Hui was born in October 1965. Bachelor of Engineering, Jiangxi South Metallurgical School. Senior engineer. He is currently the deputy general manager of Guangdong Electric Power Development Co., Ltd. Former Guangdong Thermal Power Engineering Corporation Deputy Chief Economist, Minister of Budget, Guangdong Electric Power Development Co., Ltd. project management manager.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report 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 theCompany’s deputy general manager, chief financial officer, secretary of the board of directors, and concurrently as manager of the board affairs department. He used to be responsible for the financial department of Guangdong Electric Power Development Co., Ltd., and be responsible and as the host of the Board Affairs Department, and the representatives of the company's securities affairs.
Office taking in shareholder companies
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Does he /she|
|Names of the|||Sharing date|Expiry date|receive|
|persons in|Names of the shareholders|Titles engaged in the shareholders|of office|of office|remuneration or|
|office|||term|term|allowance from|
||||||the shareholder|
||Guangdong Yudean Group|Director, General Manager and Vice|September|||
|Huang Zhenhai|||||Yes|
||Co., Ltd.|Secretary of Party committee,|2015|||
||Guangdong Yudean Group|||||
|Yao Jiheng||Member of the party committee|January 2011||No|
||Co., Ltd.|||||
|||Member of the commission for||||
|||discipline inspection, Vice Chief||||
|||engineer and Minster of Safety||||
||Guangdong Yudean Group||December|||
|Rao Subo||Supenvision and production||||
||Co., Ltd.||2013|||
|||technology, Head of preparation||||
|||section of Guangdong Electric Power||||
|||Infoirmation technology Center||||
|||Vice Chief engineer and Minister of||||
||Guangdong Yudean Group||November|||
|Wang Jin||Management and Secretary of the|||Yes|
||Co., Ltd.||2010|||
|||party branch||||
||Guangdong Yudean Group|Vice Chief engineer and Minister of||||
|Wen Lianhe|||June 2009||Yes|
||Co., Ltd.|Strategic Dept||||
||Guangdong Yudean Group|Vice Chief accountant and Minister||||
|Wen Shufei|||July 2014||Yes|
||Co., Ltd.|of finance Dept||||
|||General Counsel, Secretary of the||||
||Guangdong Yudean Group|||||
|Chen Ze||Board of Directors, Minister of legal|June 2016||Yes|
||Co., Ltd.|||||
|||Affairs and Capital Operations||||
||Guangdong Yudean Group|Head of the integrated department|November|||
|Zhou Xian|||||Yes|
||Co., Ltd.|and secretary of the Party branch|2016|||
||Guangdong Yudean Group|||||
|Zhang Xueqiu||Deputy GM and Board secretary|May 2009||Yes|
||Co., Ltd.|||||
||Guangdong Yudean Group|||||
|Zhang Dewei||cretary of Audit Supervise Dept|June 2012||Yes|
||Co., Ltd.|||||
||Guangdong Yudean Group||November|||
|Zhao Li||ice Secretary of Finance Dept|||Yes|
||Co., Ltd.||2010|||

Offices taken in other organizations
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Drawing|
||||Start date of|End date of|remuneration and|
|Name|Other unit|Title||||
||||office term|office term|allowance from of|
||||||other unit(Y/N)|
||Guangdong Shaoguan Yuejiang Power|||||
|Rao Subo||Board chairman|July 2016||No|
||Generation Co., Ltd.|||||
|||Vice Board||||
|Rao Subo|Guangdong Yuejia Electric Power Co., Ltd.||December 2013||No|
|||chairman||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||
|-|-|-|-|-|
||Guangdong Yudean Yunhe Power||||
|Rao Subo||Board chairman|January 2014|No|
||Generation Co., Ltd.||||
||Guangdong Yuelong Power Generation||||
|Rao Subo||Board chairman|July 2015|No|
||Co.,Ltd.||||
|Rao Subo|North Union Electric Power Co., Ltd.|Director|March 2014|No|
|Rao Subo|Shanxi Yudean Energy Co., Ltd.|Board chairman|January 2014|No|
|Rao Subo|Yudean Investment Co., Ltd.|Board chairman|February 2014|No|
||Tianshengqiao First Class Hydropower||||
|Rao Subo||Board chairman|June 2017|No|
||Development Co., Ltd.||||
||Guangdong Electric Power Trade Center||||
|Wang Jin||Director|March 2017|No|
||Co., Ltd.||||
||Maoming Zhenneng Thermoelectric Co.,||||
|Wang Jin||Board chairman|December 2010|No|
||Ltd.||||
|Wang Jin|Yudean Investment Co., Ltd.|Director|December 2010|No|
||Guangdong Zhuhai Jinwan Power||||
|Wang Jin||Board chairman|August 2011|No|
||Generation Co., Ltd.||||
||Guangdong Zhuhai Power Generation||||
|Wang Jin||Board chairman|August 2011|No|
||Co.,Ltd.||||
||Zhuhai Special Economic Zone||||
|Wang Jin||Board chairman|February 2013|No|
||GuangzhuPower Generation Co., Ltd.||||
||Guangdong Yuehua Power Generation||||
|Wang Jin||Board chairman|July 2017|No|
||Co.,Ltd.||||
|Wang Jin|Guangdong Power Industry Fuel Co., Ltd.|Board chairman|August 2017|No|
||Guangdong Yudean Huaqing Coal||||
|Wen Lianhe|Gasification Combined cycle Power|Board chairman|May 2011|否|
||Generation Co., Ltd .||||
||Guangdong Red Bay Power Generation||||
|Wen Lianhe||Board chairman|July 2009|No|
||Co.,Ltd.||||
||Guangdong Yudean Jinghai Power||||
|Wen Lianhe||Director|August 2009|No|
||Generation Co., Ltd.||||
||Guangdong Yudean Xinhui Power||||
|Wen Lianhe||Board chairman|June 2009|No|
||Generation Co., Ltd.||||
||Guangdong Yudean Bohe Coal Power||||
|Wen Lianhe||Board chairman|July 2016|No|
||Co.,Ltd.||||
||Guangdong Yudean Zhongshan Thermal||||
|Wen Lianhe||Board chairman|July 2009|No|
||power plant Co., Ltd.||||
||Guangdong Yudean Yudean Holding||||
|Wen Lianhe||Director|May 2012|No|
||Western Investment Co., Ltd.||||
||Shenzhen Guangqian Electric Power|Executive|||
|Wen Lianhe|||April 2017|No|
||Co.,Ltd.|director|||
||Guangdong Yudean Huadu Natural gas||||
|Wen Lianhe||Board chairman|March 2013|No|
||thermal Power Co., Ltd.||||
|Wen Lianhe|Yangjiang Nuclear power Co., Ltd.|Director|June 2017|No|
||Taishan Nuclear Power Industry Investment||||
|Wen Lianhe|Co., Ltd.（Taishan Nuclear Power Joint|Director|June 2017|No|
||Venture Co., Ltd.）||||
|Wen Shufei|Guangdong Yudean Finance Co., Ltd.|Board chairman|August 2017|No|
|Wen Shufei|Chaokang Investment Co., Ltd.|Board chairman|December 2014|No|
||Tianshengqiao First Class Hydropower||||
|Wen Shufei||Director|August 2014|No|
||Development Co., Ltd.||||
||Zhuhai Special Economic Zone||||
|Wen Shufei||Director|July 2014|No|
||GuangzhuPower Generation Co., Ltd.||||
||Guangdong Zhuhai Power Generation||||
|Wen Shufei||Director|July 2014|No|
||Co.,Ltd.||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||
|-|-|-|-|-|
||Guangdong Zhuhai Jinwan Power||||
|Wen Shufei||Director|July 2014|No|
||Generation Co., Ltd.||||
||Guangdong Yudean Financing Lease Co.,||||
|Wen Shufei||Board chairman|December 2016|No|
||Ltd.||||
|Chen Ze|Guangdong Yudean Shipping Co., Ltd.|Board chairman|November 2017|No|
|Chen Ze|Huangdong Shippping Co., Ltd.|Board chairman|June 2017|No|
||Guangdong Yudean Jinghai Power||||
|Chen Ze||Board chairman|July 2016|No|
||Generation Co., Ltd.||||
||Guangdong Lianzhou Yuelian Power Plant||||
|Chen Ze||Board chairman|July 2016|No|
||Co., Ltd.||||
|Chen Ze|Guangdong Yuejia Electric Power Co., Ltd.|Board chairman|July 2016|No|
||Guangdong Yudean Faneng Investment Co.,|Executive|||
|Chen Ze|||August 2016|No|
||Ltd.|director|||
||Tianshengqiao First Class Hydropower||||
|Chen Ze||Director|October 2016|No|
||Development Co., Ltd.||||
|Chen Ze|Guangdong Yangjiang Port Co., Ltd.|Board chairman|August 2016|No|
||Guangdong Yudean Real estate Investment|Executive|||
|Zhou Xian|||July 2017|No|
||Co., Ltd.|director|||
||Guangzhou Development Asset|Executive|||
|Zhang Xueqiu|||May 2014|No|
||Management Co., Ltd.|director|||
||Guangzhou Development New Energy|Executive|||
|Zhang Xueqiu|||January 2015|No|
||Investment Management Co., Ltd.|director|||
||Guangzhou Development New City|Executive|||
|Zhang Xueqiu|||May 2014|No|
||Investment Co., Ltd.|director|||
||Guangzhou Development Nansha|Executive|||
|Zhang Xueqiu|||May 2014|No|
||Investment Management Co., Ltd.|director|||
|||A|||
|Sha Qilin|Guangdong Nanguo Desai Law firm||March 2007|Yes|
|||lawyer,Partner|||
|Shen Hongtao|Accounting dept , Jinan University|Professor|April 2012|Yes|
|||Independent|||
|Shen Hongtao|Guangsheng Nonferrous Metal Co., Ltd.||April 2015|Yes|
|||Director|||
||Guangzhou Yuexiu Finance Holding Group|Independent|||
|Shen Hongtao|||November 2017|Yes|
||Co., Ltd.|Director|||
|||Independent|||
|Shen Hongtao|Guangzhou Store Co., Ltd.||September 2016|Yes|
|||Director|||
|Wang Xi|Lingnan College, Sun Yat-sen University|Professor|July 2006|Yes|
|||Independent|||
|Wang Xi|Palm Graden Co., Ltd.||May 2014|Yes|
|||Director|||
|||Independent|||
|Wang Xi|Guangzhou Securities Co., Ltd.||December 2012|Yes|
|||Director|||
|||Independent|||
|Wang Xi|Zhuhai Rural Commercial Bank Co., Ltd.||July 2014|Yes|
|||Director|||
|||General|||
|||Manager of M|||
|Yin Zhongyu|Greal Wall Secutities Co., Ltd.||March 2009|Yes|
|||& A|||
|||Department|||
||Provincial Key Laboratory, School of||||
|Ma Xiaoqian|Electric Power, South China University of|Director|July 2014|Yes|
||Technology||||
||Guangzhou Environmental protection|External|||
|Ma Xiaoqian|||September 2016|Yes|
||Investment Group Co., Ltd.|director|||
|||Independent|||
|Ma Xiaoqian|Guangzhou Development Group Co., Ltd.||June 2016|Yes|
|||Director|||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||
|-|-|-|-|-|
||Guangdong Red Bay Power Generation||||
|Zhang Dewei||Director|April 2010|No|
||Co.,Ltd.||||
|||Chairman of|||
|Zhang Dewei|Yangjiang Nuclear Power Co., ltd.|the Supervisory|June 2016|No|
|||Committee|||
||Taishan Nuclear Power Industry Investment||||
|Zhang Dewei|Co., Ltd.（Taishan Nuclear Power Joint|Supervisor|June 2016|No|
||Venture Co., Ltd.）||||
|Zhao Li|Yudean Group Guozhou Co., Ltd.|Director|January 2016|No|
|||Chairman of|||
||Guangdong Yudean Jinghai Power||||
|Zhao Li||the Supervisory|May 2011|No|
||Generation Co., Ltd.||||
|||Committee|||
||Guangdon Yudean Zhanjiang Wind Power||||
|Zhao Li||Director|June 2015|No|
||Generation Co., Ltd.||||
||Guangdong Yudean Environmental||||
|Zhao Li||Supervisor|March 2014|No|
||protection Co., Ltd.||||
|Zhao Li|CSPG Energy Co., Ltd.|Supervisor|December 2010|No|
|||Chairman of|||
|Zhao Li|Guangdong Power Development Co., Ltd.|the Supervisory|December 2014|No|
|||Committee|||
||Institute of industrial Economics, Jinan|Professor,|||
|Zhu Weiping|||January 2000|Yes|
||University|President|||
|||Independent|||
|Zhu Weiping|Guangsheng Nonferrous Metal Co., ltd.||November 2016|Yes|
|||director|||
|||Professor,|||
|Jiang Jinsuo|Guangdong finance institute||January 2013|Yes|
|||Headof Dept|||
||Guangdong Yudean Bohe Coal Power||||
|Li Qing||Supervisor|December 2010|No|
||Co.,Ltd.||||
|Li Qing|Lincang Yudean Energy Co., Ltd.|Supervisor|January 2015|No|
|||Chairman of|||
||Guangdong Yudean Yongan Gas thermal||||
|Li Qing||the Supervisory|June 2016|No|
||Power Co., Ltd.||||
|||Committee|||
||Guangdong Yudean Qujie Wind Power||||
|Li Qing||Supervisor|April 2015|No|
||Generation Co., Ltd.||||
||South Offshore wind power Union||||
|Li Qing||Supervisor|June 2012|No|
||Development Co., Ltd||||
|Yang Xuanxing|Zhanjiang Electric Power Co., Ltd.|Board chairman|May 2015|No|
|Yang|Guangdong Red Bay Power Generation|Vice Board|||
||||May 2014|No|
|Xuanxing|Co.,Ltd.|chairman|||
|Yang Xuanxing|Zhanjiang Zhongyue Energy Co., Ltd.|Board chairman|January 2015|No|
|Yang|Guangdong Yudean Yongan Gas Thermal||||
|||Board chairman|June 2016|No|
|Xuanxing|Power Co., Ltd.||||
||Guangdong Yudean Zhanjiang Wind Power||||
|Yang Xuanxing||Board chairman|July 2016|No|
||Generation Co., Ltd.||||
|Yang|Guangdong Yudean Dapu Power Generation|Executive|||
||||July 2017|No|
|Xuanxing|Co., Ltd.|director|||
||Guangdong Huizhou Pinghai Power|Vice Board|||
|Yang Xuanxing|||March 2017|No|
||Generation Co., Ltd.|chairman|||
|Yang||Vice Board|||
||Shanxi Yudean Energy Co., Ltd.||August 2015|No|
|Xuanxing||chairman|||
|Yang Xuanxing|Guangdong Yuejia Power Co., Ltd.|Director|May 2015|No|
|||Convenor of|||
|Yang|||||
||Shenzhen Guangqian Power Co., Ltd.|the Board of|August 2011|No|
|Xuanxing|||||
|||Supervisors|||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||
|-|-|-|-|-|
||Maoming Zhenneng Thermoelectric Co.,||||
|Liu Hui||Director|September 2010|No|
||Ltd.||||
||Guangdong Yudean Holding Western|Vice Board|||
|Liu Hui|||August 2014|No|
||Investment Co., Ltd.|chairman|||
||Guangdong Guohua Yudean Taishan Power|Vice Board|||
|Liu Hui|||August 2017|No|
||Generation Co., Ltd.|chairman|||
|Liu Hui|Guangdo9ng Yudean Shipping Co., Ltd.|Director|June 2017|No|
||Guangdong Yudean Bohe Coal Power||||
|Liu Hui||Director|September 2010|No|
||Co.,Ltd.||||
||Guangdong Yudean Humen Power||||
|Liu Hui||Director|October 2017|No|
||Generation Co., Ltd.||||
||Guangdong Yudean Huadu Natural lGas||||
|Liu Hui||Director|July 2016|No|
||Thermal Power Co., Ltd.||||
||Guangdong Yudean Jinghai Power||||
|Liu Wei||Director|June 2017|No|
||Generation Co., Ltd.||||
|||Convenor of|||
|Liu Wei|Guangdong Yudean Shipping Co., Ltd.|the Board of|May 2007|No|
|||Supervisors|||
||Shenzhen Chuangxin Investment Group||||
|Liu Wei||Supervisor|August 2016|No|
||Co., Ltd.||||

Punishments to the current and leaving board directors, supervisors and senior managers during the report period by securities regulators in the recent three years
□ Applicable√Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors , supervisors and senior executives
Directors, supervisors and senior executives of the Company shall obtain labor remuneration and enjoy
corresponding employee benefits according to their position and the Company's wage system. Except such remuneration and benefits, no other remuneration and fringe benefits shall be additionallyprovided；The allowance for the independent directors and independent supervisors of the Company shall be paid according to the standards approved by the shareholders' general meeting.
At the end of the report period, the directors, supervisors and senior executives received the actual remuneration b efore tax was total RMB 4.0787 million .
Remueration to directors, supervisors and senior executives in the reporting period
InRMB’0000
||||||||
|-|-|-|-|-|-|-|
||||||Total remuneration|Remuneration actually|
|Name|Positions|Sex|Age|Office status|received from the|receivect at the end of|
||||||shareholder|the reporting period|
|Huang Zhenhai|Board chairman|Male|55|In Office||Yes|
||Vice Board||||||
|Yao Jiheng|chairman,|Male|52|In office|45.75|No|
||General Manager||||||
|Rao Subo|Director|Male|53|In office||Yes|
|Wang Jin|Director|Male|54|In office||Yes|
|Wen Lianhe|Director|Male|49|In office||Yes|
|Wen Shufei|Director|Female|53|In office||Yes|
|Chen Ze|Director|Male|48|In office||Yes|
|Zhou Xian|Director|Male|44|In office||Yes|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
||||||||
|-|-|-|-|-|-|-|
||Employee||||||
|Chen Changlai||Male|54|In office|70.69|No|
||director||||||
|Zha\ng Xueqiu|Director|Male|51|In office||Yes|
||Independent||||||
|Sha Qilin||Male|57|In office|4.78|No|
||director||||||
||Independent||||||
|Shen Hongtao||Female|50|In office|4.78|No|
||director||||||
||Independent||||||
|Wang Xi||Male|47|In office|2.64|No|
||director||||||
||Independent||||||
|Ma Xiaoqian||Male|53|In office|1.07|No|
||director||||||
||Independent||||||
|Yin Zhongyu||Male|48|In office|1.07|No|
||director||||||
||Chairman of the||||||
|Zhang Dewei|Supervisory|Male|56|In office||Yes|
||Committee||||||
|Zhao Li|Supervisor|Female|45|In office||Yes|
||Independent||||||
|Zhu Weiping||Male|60|In office|3.57|No|
||Supervisor||||||
||Independent||||||
|Jiang Jinsuo||Male|49|In office|3.57|No|
||Supervisor||||||
||Employee||||||
|Lin Weifeng||Male|49|In office|30.09|No|
||supervisor||||||
||Employee||||||
|Li Qing||Male|40|In office|27.81|No|
||supervisor||||||
||Deputy General||||||
|Yang Xuanxing||Male|52|In office|61.65|No|
||manager||||||
||Deputy General||||||
|Liu Hui||Female|52|In office|58.5|No|
||manager||||||
||Deputy General||||||
||manager, Finance||||||
|Liu Wei||Male|38|In office|39.92|No|
||Manager, Board||||||
||secretary||||||
|Li Yanxu|Director|Male|51|Dimission||Yes|
|Hong Rongkun|Director|Male|60|Dimission||Yes|
|Gao Shiqiang|Director|Male|60|Dimission||Yes|
|Li Mingliang|Director|Male|53|Dimission||Yes|
|Xu Ping|Director|Male|54|Dimission||Yes|
|Yang Xinli|Director|Male|55|Dimission||Yes|
||Independent||||||
|Liu Tao||Male|46|Dimission|3.71|No|
||director||||||
||Independent||||||
|Zhang Hua||Male|52|Dimission|4.25|No|
||director||||||
||Independent||||||
|Mao Fugen||Male|54|Dimission|3.17|No|
||director||||||
||Deputy General||||||
|Li Xiaoqing|Manager, Finance|Female|46|Dimission|40.85|No|
||Manager||||||
|Total|--|--|--|--|407.87|--|

Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
Guangdong Electric Power Development Co., Ltd. 2017Annual Report V. Particulars about employees.
1. Staff jobs, education, job title number and proportion refer to the following pie chart:
|||
|-|-|
|Number of in-service staff of the parent company（person）|29|
|Number of in-service staff of the main subsidiaries（person）|6,928|
|Total number of the in-service staff（person）|6,957|
|Total number of staff receiving remuneration in the current||
||6,957|
|period（person）||
|The number of the parent company and the main subsidiary’s||
||2,933|
|retired staffs who need to bear the cost（person）||
|Professional||
|Classified according by Professions|Number of persons（person）|
|Production|4,468|
|Sales|74|
|Technical|1,240|
|Financial|177|
|Administrative|998|
|Total|6,957|
|Education||
|Classified according by education background|Number of persons（person）|
|Doctor|2|
|Master|219|
|Universities|3,036|
|Colleges|2,010|
|Technical secondary school|302|
|High school and Below|1,388|
|Total|6,957|

 2. Remuneration policies
Thecompany’s staff received the salaries and enjoyed the benefits according to the relevant provisions stipulated in thecompany’s Salary Management Approach. The salary of thecompany’s staff (Except the management staff who categorized in the annual salary system) basically constituted by the basic salary, post salary, performance salary, allowance, overtime wages and special bounties and so on.
3.Training plan
The company formulated the Temporary Provisions for the Management of Staff Education and Training. The staff training was adhered to the principle of learning integrated with application, learning by the needs and stressing of practical effect, focused on the main contents of the post and the practical operation skills. The training contents included the new staff orientation training, post training, continuing education, overseas training and other trainings.
4. Outsourcing situation
□ Applicable√ Not applicable
Guangdong Electric Power Development Co., Ltd. 2017Annual Report IX. Administrative structure
I.Basic state of corporate governance
The company is strictly in accordance with “Company Law”, “Securities Law”, “Governance Standards of Listed Company”, “Listing Rules of Stocks” and other laws and regulations requirements, constantly perfects the corporate governance structure, standardizes corporate operations and further enhances the level of corporate governance. The company has established the corporate “Articles of Association”, the rules of procedure of threemeetings’ operation, the working rules of the board of directors special committee, the working rules of the general manager of company and working conditions and internal control system which basically covers all aspects of the operation management like financial management, investment management, information disclosure, associated trade, external guarantees and fund-raising. These systems are implemented better. During the reporting period, the company has amended part of the clauses in “Inside Information Management System” based on the original systems and the requirements of the CSRC.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC,
□ Yes√ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The company has implemented separation of operation,separation of human resource, separation of assets, separat ion of organization and financial independence between controlling shareholder. And it has a complete business and operations management ability. 1. Separation of operation: the Company is principally engaged in the electricity generation and sales to Guangdong Electric Power Holding Co.(“GPHC”) directly. The Company has subcontracted the subsidiary of Yudean, the holding company, to purchase the fuels, which is solely for the purpose of better utilization of large-scale purchase and cost control. 2. Separation of human resource: the General Manager and all his subordinates, Secretary to the Board of Directors, Financial Manager are paid by the
Company and take no position in the holding company. 3. Separation of assets: the Company has independent production system, supporting system and other facilities. The Company owns its intangible assets such as intellectual property rights, trademarks and non-patent technology; 4. Separation of organization: the Company has established integrated operating institution of its own.5.. Financial independence: the Company has an independent financial department and has established independent accounting system and financial management system. It opened independent bank accounts for its own operation.
III. Competition situations of the industry
√Applicable□ Not Applicable
|||||||
|-|-|-|-|-|-|
|Problem|Name of the|Property of|||Time Schedule of Works and|
||||Problems and Causes|Countermeasures||
|Types|Controlling|the Controlling|||Follow-up Program|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||
|-|-|-|-|-|-|
||Shareholders|Shareholders||||
||||Yudean Group was|On January 3, 2018, the co|Our company will actively fulfill|
||||established when|mpany disclosed Announce|the trusteeship and responsibiliti|
||||Guangdong Provinci|ment on Controlling Shareh|es according to the “Equity Cust|
||||al Government took|olders' Commitment to Perf|ody Agreement” and participate|
||||the lead in the im|orm Related Matters (public|in the management and decision-|
||||plementation of the|notice No.: 2018-01); on J|making and inspection and super|
||||“plant and networ|anuary 13, 2018, the compa|vision of the custody target. The|
||||k separation” power|ny disclosed Announcement|company will cooperate with Y|
||||system reform in|of Related Transactions on|udean Group to push forward th|
||||China, and was sep|the "Equity Custody Agree|e defect rectification of the unde|
||||arated and formed|ment" signed with Guangdo|rlying assets, study the rectificati|
||||from Guangdong Pr|ng Yudean Group Co., Ltd.|on and solution to the defects a|
||||ovincial Power Gro|(public notice No.: 2018-0|nd obstacles in the relevant asse|
||||up Corporation. It i|4). In order to avoid compe|ts that do not meet the listing c|
||||s the largest and m|tition in the same industry|onditions, promote relevant rectif|
||||ost powerful power|and to fulfill the relevant h|ication work from the aspects of|
||||generation enterpri|orizontal competition commi|improving project approval or a|
||||se in Guangdong P|tments, Yudean Group has s|pproval procedures, clarifying la|
||||rovince. Yudean Po|igned the Entrusted Manage|nd and property ownership, enha|
||||wer is the only list|ment Agreement with the c|ncing asset profitability, and imp|
||Guangdong||ed company under|ompany, and all the shareho|lementing legal compliance. For|
|Horizontal||||||
||Yudean||the Yudean Group|lders' rights other than the|custody assets that meet the listi|
|competitio||Local SASAC||||
||Group Co.,||and is engaged in|ownership, income, and disp|ng conditions in the future, Yud|
|ns||||||
||Ltd.||power production b|osal rights of the company|ean Group will, in accordance|
||||usiness. At present,|that temporarily fails to me|with the unified deployment of t|
||||Yudean Group still|et the listing conditions in t|he Guangdong Provincial Party|
||||has some remainin|he company's custody area|Committee and the provincial go|
||||g power generation|of the Yudean Group are es|vernment and the overall require|
||||assets that have n|crowed to our company.|ments for the reform of state-ow|
||||ot been included in||ned enterprises, actively create c|
||||Yudean Power tem||onditions for the injection into li|
||||porarily. Considerin||sted companies in accordance wi|
||||g the situation of t||th the status of the assets under|
||||hese power generati||custody, combined with enterpri|
||||on assets, it is tem||se restructuring, structural adjust|
||||porarily not in line||ment arrangements, electricity m|
||||with the listing co||arket and capital market conditio|
||||nditions, and it is||ns.|
||||difficult to solve th|||
||||ese problems in the|||
||||short term. Theref|||
||||ore, there is a cert|||
||||ain degree of horiz|||
||||ontal competition.|||

IV. Annual General Meeting and ExtraordinaryShareholders’ Meetings in the Reporting Period
1.Annual General Meeting
|||||||
|-|-|-|-|-|-|
|||Investor||||
|Sessions|Type||Meeting Date|Disclosure date|Disclosure index|
|||participation ratio||||
||||||Name of Announcement :Announcement of|
|2016|Annual||||Resolution of 2016 shareholders’ general|
|Shareholders’|General|72.90%|May 17,2017|May 18,2017|meeting ，Announcement No.:2017-17.|
|general meeting|Meeting||||Published in China Securities Daily, Securit|
||||||ies Times and http//.www.cninfo.com.cn|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||||
|-|-|-|-|-|-|
||Provisionalshareholders’GeneralgMeeting||September18,2017||Name of Announcement :Announcement of|
|The first||||||
||||||Resolution of the first Provisional|
|provisional||||||
|||||September|shareholders’ general meeting in 2017，|
|shareholders’||73.01%||||
|||||19,2017|Announcement No.:2017-34,|
|General meetin||||||
||||||Published in China Securities Daily, Securit|
|in 2017||||||
||||||ies Times and http//.www.cninfo.com.cn|

 2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore□ Applicable√Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings andshareholders’ general meeting
|||||||||
|-|-|-|-|-|-|-|-|
|The attending of independent directors||||||||
|||||||Failure to||
||Number of Board||Number of|Number of|||Times for|
|||Number of||||personally attend||
|Independent|meetings necessary||meetings|attendances|Number of||attending the|
|||spot||||board meetings||
|Directors|to be attended in the||attended by|by|absence||AGM|
|||attendances||||successively||
||reporting period||Communication|representative||||
|||||||twice (Yes/No)||
|Sha Qilin|7|3|4|0|0|No|2|
|Shen Hongtao|7|3|4|0|0|No|2|
|Wang Xi|7|1|4|2|0|No|1|
|Ma Xiaoqian|3|1|2|0|0|No|1|
|Yin Zhongyu|3|1|2|0|0|No|1|
|Liu Tao|4|2|2|0|0|No|1|
|Zhang Hua|4|2|2|0|0|No|1|
|Mao Fugen|4|2|2|0|0|No|0|

 Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes√No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independentdirector’s advice to the Company been accepted
√Yes□No
Explanation on acceptance of or failure to accept an independentdirector’s advice to the Company.
Nil
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
The board of directors of the company comprises committee of strategy, audit, budget, nomination and
remuneration and appraisal. Each professional committee has established their corresponding working rules and
put forward related professional opinions and suggestions according to their respective duties to the company
Guangdong Electric Power Development Co., Ltd. 2017Annual Report operating development, which promoted the standardized operation of the company. In 2017, the duty fulfillment conditions of each special committee of the company's board of directors are as follows:
1.According to the relevant provisions of the China securities regulatory commission and Shenzhen stock
exchange as well as the working discipline of annual report of the board of directors audit committee. On March 31, 2017, the Audit Committee of the eighth session board of directors held the Ninth meeting, in which thecompany’s 2016 annual financial report and The Company's Internal Control Evaluation Report etc were
deliberated, thus formed review opinions;
1. On August 8, 2017, the Audit Committee of the 8th Board of Directors convened the 10th meeting to review the company's semi-annual financial report in 2017and form an audit opinion.
2. The Board of Directors' Remuneration and Appraisal Committee reviewed the remuneration of the directors, supervisors and senior management personnel disclosed in this report, and considered that the determination of the remuneration standard and the granting of annual remuneration can be combined with the performance of the respective positions, which is consistent with thecompany’s remuneration management regulations; the
remuneration of directors, supervisors and senior management personnel disclosed in the annual report is true. 3. The budget committee of the Eight board held its 3rd meeting on April 21, 2017 , reviewed and adopted the “Proposal on Illustration of Budget Implementation in 2016 and Budget Preparation in 2017”.
4. The Nomination Committee of the Board of Directors viewed the Proposal on Recommending
Non-Independent Directors of the Ninth Board of Directors, Proposal on Recommendation of the Independent Director of the Ninth Board of Directors and Proposal on Recommendation of selection of the Ninth Management Team and Other Senior Management Personnel on August 30, 2017 in a communication conference, the
qualifications of directors, independent directors and senior management personnel of the 9th session of the Board of Directors were carefully reviewed.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting period
□Yes√No
The supervisory Committee has no objection against any matters under supervision in the reporting period VIII. Assessment and incentive Mechanism for Senior executives
Performance evaluation and incentive system will be employed by senior managers on the basis of enterprise salary management system.
IX. Internal control situations
1.Specific situations on major defects of internal control discovered during report period
□ Yes√ No
2.Self-evaluation report on internal control
Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||||
|-|-|-|-|
|Disclosure date of appraisal report on||||
|||April 28,2018||
|internal control||||
|Disclosure index of appraisal report on||Juchao Website（: http://www.cninfo.com.cn）, Selfevaluation report of internal control in||
|internal control||2017||
|Proportion of total unit assets covered by||||
|appraisal in the total assets of the||||
|||96 %||
|consolidated financial statements of the||||
|company||||
|Proportion of total unit incomes covered||||
|by appraisal in the total business incomes||||
|||99.16%||
|of the consolidated financial statements of||||
|the company||||
|Standards of Defects Evaluation||||
|Category|Financial Report||Non-financial Report|
||Qualitative criteria of evaluation towards inner control deficiency of||Qualitative criteria of evaluation|
||financial report made by company are as follows: Ⅰ, the inner control||towards inner control deficiency|
||of financial report should be considered as “significant deficiency” if||of non-financial report made by|
||the following circumstances (including but not limited to) occurred: ①||company are as follows: ①|
||the ineffective environmental control; ② irregularities appearing||significant deficiency means one|
||between company directors, supervisors and senior executives; ③||or more combinations of control|
||serious mistakes in the financial statements of the current period found||deficiency which may result in|
||by external audit but not the inner control in the process of operating;||seriously deviating from control|
||④ ineffective supervision of inner control from directorate and inner||goals. ② serious deficiency|
||audit institution. Ⅱ, the inner control of financial report should be||means one or more combinations|
|Qualitative criteria|considered as “serious deficiency” if the following circumstances||of control deficiency whose|
||occurred: ① accounting policy chosen and applied is not based on the||severity and financial result are|
||GAAP; ② anti-irregularity procedure and control measures are not||less than those of significant|
||established; ③ very few relative control measures are established or||deficiency with possibility of|
||implemented in terms of the accounting treatment related to||deviating company from its|
||unconventional or special transaction; ④ one or more deficiencies||control goals. ③ common|
||exist in the control process of final financial report and the authenticity,||deficiency means other control|
||accuracy and integrity of establishment can not be assured reasonably.||deficiencies apart from|
||Ⅲ common deficiency means, apart from the above “significant||significant and serious|
||deficiency” and “serious deficiency”, other deficiencies exist in the||deficiencies.|
||inner control process.|||
||A quantitative criterion regards operating receipt and gross value of|||
||assets as its yard stick. ① inner control deficiency may lead to loss|||
||related to profit statement, which is measured by operating receipt. The|||
||amount of misstatement in financial report resulted from the control|||
||deficiency or its combination is less than 0.5 percent of the operating|||
||||①the significant deficiency|
||receipt, which could be considered as the common deficiency. That|||
||||means that the direct property|
||would be considered as serious deficiency if the amount of|||
||||loss is between 50 million|
||misstatement in financial report resulted from the control deficiency or|||
||||yuan .(2) the significant|
||its combination is more than 0.5 percent but less than 1 percent of the|||
||||deficiency means hat the direct|
|Quantitative standard|operating receipt. And that would be regarded as significant deficiency|||
||||property loss is between 30|
||if that is more than 1 percent of the operating receipt. ② inner control|||
||||million yuan (including 30|
||deficiency may lead to loss related to assets management, which is|||
||||million yuan) ; the serious|
||measured by total assets. The amount of misstatement in financial|||
||||deficiency means that the direct|
||report resulted from the control deficiency or its combination is less|||
||||property loss is between 30|
||than 0.5 percent of the total assets, which could be considered as the|||
||||million.|
||common deficiency. That would be considered as serious deficiency if|||
||the amount of misstatement in financial report resulted from the control|||
||deficiency or its combination is more than 0.5 percent but less than 1|||
||percent of the total assets. And that would be regarded as significant|||
||deficiency if that is more than 1 percent of the total assets.|||
|Number of major||||
||0|||
|defects in financial||||

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||
|-|-|
|reporting（a）||
|Number of major||
|defects in non financial|0|
|reporting (a)||
|Number of important||
|defects in financial|0|
|reporting（a）||
|Number of important||
|defects in non financial|0|
|reporting（a）||

X. Internal Control audit report
√ Applicable□Not applicable
|||
|-|-|
|Review opinions in the internal control audit report||
|Disclosure date of audit report||
||Disclosure|
|of internal control (full-text)||
|Index of audit report of||
||April 28,2018|
|internal control (full-text)||
|Internal audit report’s opinion|Juchao Website: （http://www.cninfo.com.cn）2017 Audit report of internal control|
|Type of audit report on internal||
||Unqualified auditor’s report|
|control||
|Whether there is significant||
||No|
|defectin non-financial report||

Has the CPAs issued a qualifiedauditor’s report of internal control .
□ Yes√No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of Directors
√Yes□No
Guangdong Electric Power Development Co., Ltd. 2017Annual Report X. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due butnot folly cashed on the approval date of annual report
Yes
I.Basic information of corporate bonds
|||||||||
|-|-|-|-|-|-|-|-|
||Bond short||||Bond balance|Interest||
|Bond name||Bond code|Issue day|Due day|||Servicing way|
||name||||‘0000|rate||
||||||||Using simple interest rate|
||||||||on a yearly basis,|
||||||||regardless of compound|
|2012 Corporate bonds||||||||
||||||||interest. Due payments|
|of Guangdong Electric|12 Yudean||March|March||||
|||112162.SZ|||120,000|4.95%|once a year, maturing|
|Power Development|Bond||18,2013|17,2020||||
||||||||debt at a time. In the final|
|Co., Ltd..||||||||
||||||||phase, interest is paid|
||||||||together with the|
||||||||principal redemption.|
|Corporate bonds listed or trading places|||Shenzhen Stock Exchange|||||
|Investor Proper Arrangement|||Not applicable|||||
||||The company paid the bond interests of the current year on March 20, 2017 to all|||||
|During the reporting period, interest payment|||the bond holders who were registered in China Securities Depository and|||||
|situation of the company bonds|||Clearing Co., Ltd. Shenzhen branch as of the afternoon of March 17, 2017 when|||||
||||the Shenzhen Stock Exchange closed.|||||
|If the corporate bonds attached to special clauses||||||||
||||The duration of the bonds is 7 years, with redemption option, option of raising|||||
|to the issuer or the investors such as option||||||||
||||coupon rate by the issuer and the puttable right for the investors at the end of the|||||
|clause and exchangeable clause, please specify||||||||
||||fifth year. During the reporting period, the relevant clauses have not met the|||||
|the implementation status of the corresponding||||||||
||||conditions for implementation.|||||
|clauses. (When applicable)||||||||

II. Bond trustee and the credit rating agency information
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Bond trustee：||||||||||
|||Office|22/F, CITIC Securities Building ,||||Song|||
||CITIC Securities|||||||||
|Name|||No.48. Liangmaqiao Road,|||Contact|Yilan ,Kou|Tel|010-60838888|
||Co., Ltd.|||||||||
||||Chaoyang District , Beijing||||Zhibo|||
|The credit rating agencies which follow and rate the corporate bond during the reporting period||||||||||
||||||8/F, Anji Building, No.760, Tibet South Road,|||||
|Name|CCXR|||Office address||||||
||||||Huangpu District, Shanghai.|||||
|During the report period, the bond trustee, credit rating agency||||||||||
|employed by the company that have changed, reasons for the||||||||||
|||||Not applicable||||||
|change, performing procedures, relevant influence on||||||||||
|investors,etc(If applicable).||||||||||

III. The usage of corporate bonds to raise money
|||
|-|-|
||According to the relevant contents in the Prospectus of the Issuance of Bonds|
||announced on March 14, 2013, the company planned to use RMB 820 million of the|
|The usage and performance of raised funds||
||raised funds to repay the loans, thus to adjust the debt structure; the remaining RMB|
|from Corporate bonds||
||380 million of the raised funds planned for supplementing the company’s liquidity, so|
||as to improve the company’s funds status.|
|At the end of balance (RMB’0000)|0|

Guangdong Electric Power Development Co., Ltd. 2017Annual Report
|||
|-|-|
||The net amount of the funds raised by the bonds had been remitted to the company’s|
||designated bank account on March 20, 2013, of which the amount of RMB 820 million|
|Special fund raising account operation|of the raised funds had been used for repaying the loans, so as to adjust the debt|
||structure; the remaining RMB 380 million of the raised funds used for supplementing|
||the company’s liquidity, so as to improve the company’s funds status.|
|Whether the usage of the raised money||
|corresponding to the purposes of promise,|Yes|
|use plans, and other agreement||

IV.Corporate bond rating information
On June 16, 2017, CCXR traced and analyzed the credit status of the company and thecompany’s bonds of “12-Yudean Bonds”, maintained the credit rating of AAA for the main body of the company, with a stable outlook; maintained the credit rating of AAA for the corporate bonds.(The rating results were disclosed on the website: http://www.ccxr.com.cn/, with the title of Tracking and Rating Report for the 2012-Corpoprate Bonds of
Guangdong Electric Power Development Co., Ltd(2017).
V.Corporate bond credit mechanism, the debt repayment plans and other security measures
(1)The credit-raising mechanism: No guarantee of thecompany’s bonds. After the comprehensive assessment by CCXR, the credit rating of the main body of the company is AAA with a stable outlook, and the credit rating of the corporate bonds is AAA.
(2)The repayment plan: The interest of the bonds commenced from the date of March 18, 2013, and the interest of the bonds shall be paid once each year within the duration of the bonds after the commencement date of the interest. The date of March 18 of each year in the period from 2014 to 2020 shall be the interest paying day for paying the recent fullyear’s bond interests (If it is not a working day, the payment day will be postponed to the first working day after the day). If the issuer performs the redemption option or the investors perform the puttable right, then the date of March 18 of each year in the period from 2014 to 2018 is the interest paying day for paying the recent fullyear’s interests of the bonds being redeemed or the bonds being sold back. The maturity date of the bonds is March 18, 2020, and the company will repay the principal and pay the last fullyear’s interest when the bond is due. If the issuer performs the redemption option or the investors perform the puttable right, the maturity date of the bonds being redeemed or the bonds being sold back is March 18, 2018, and the corresponding
principal and the last fullyear’s interest will be repaid.
(3) Safeguard measures for the repayment: in order to fully and effectively safeguard the interests of the
bondholders, the company had made a series of work plans for the full repayment of the bonds that can be implemented on time, including the designated department and personnel, arrangement of repaying the bonds, establishment of the management measures, doing good organization and coordination, strengthening the
information disclosure and so on, strived to form a set of safeguard measures for ensuing the repayment of the bonds.
VI.During the reporting period the bondholder meeting
During the reporting period, the company did not hold bondholders meeting.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report VII.During the reporting period the bond trustee perform his duties
Thecompany’s bond trustee- CITIC Securities Co., Ltd safeguarded the legal rights of the bond holders with in accordance with the law and performed the obligations stipulated in the Prospectus of the Issuance of Bonds and other publicly disclosed documents, hence continuously followed up and acquainted the relevant information of the company during the entrusting period, issued and provided the regular report of the bond trustee, with in accordance with thecompany’s information being followed up and acquainted.
During the reporting period, CITIC Securities Co., Ltd issued the Report of the 2012 Corporate Bonds Trustee for Guangdong Electric Power Development Co., Ltd(year of 2016) on May 26, 2017, and the report was disclosed on the cninf website on May 30, 2016 by the company.
VIII.During the reporting period, the company's major accounting data and financial indicators for last 2 years
InRMB’0000
|||||
|-|-|-|-|
|Items|2017|2016|At the same time rate of change|
|Earnings before interest, tax,||||
||299,991.27|342,800.75|-12.49%|
|depreciation and amortization||||
|Current ratio|60.09%|66.95%|-6.86%|
|Debt ratio|58.17%|58.49%|-0.32%|
|Quick ratio|41.95%|46.93%|-4.98%|
|EBITDA/Total debts|7.47%|8.46%|-0.99%|
|Interest coverage ratio|1.99|2.08|-4.33%|
|Cash interest coverage ratio|3.9|7.03|-44.52%|
|EBITDA interest coverage ratio|2.05|2.14|-4.21%|
|Loans repayment rate|100 %|100 %|0 %|
|Interest payment rate|100 %|100 %|0 %|

 The material reasons for the changed ratio of the accounting data or financial indicators exceeds30% over the last year
√ Applicable□Not applicable
The reduction in the period for payment of fire coal funds and the increase in fire coal prices resulted in a decrease in the net cash flow from operating activities and a decrease in times interest earned of cash.
IX. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of the bonds during the reporting period
1.On June 7, 2016, the company issued 700,000,000 yuan of phase I ultra short-term financing bonds, with a term of 270 days. During the reporting period, the payment of the principal and interest was RMB 715,013,863. 2.On August 11, 2016, the company issued 500,000,000 yuan of Phase II ultra short-term financing bonds, with a term of 270 days. During the reporting period, the payment of the principal and interest was RMB：509,471,069. 3. On March 18, 2013, the Company publicly issued 12 Yudean bonds to the public with a nominal amount of RMB 1,200,000,000 and a term of5+2 years. It is a kind of real-name book-entry corporate bonds. The interest paid back during the reporting period was RMB 59,400,000.
4. The controlling subsidiary of the Company, Guangdong Huizhou Pinghai Power Plant Co., Ltd., issued the first ultra-short-term financing bond of RMB 500,000,000 on July 20,2016. The term of the bond was 270 days.
During the reporting period, the principal and interest paid back was RMB 510,615,068;
5. The controlling subsidiary of the Company, Guangdong Huizhou Pinghai Power Plant Co., Ltd., publicly issued
“16 Pinghai 01” to the public on September 26, 2016. It was a real-name book-entry corporate bond (“16 Pinghai
Guangdong Electric Power Development Co., Ltd. 2017Annual Report 01”) with a nominal amount of RMB 700,000,000 and a term of 5 years. The interest paid back during the reporting period was RMB 21,700,000.
X..During the reporting period the situation of performing the related agreement or commitment in the corporate bond prospectus
In ther report period, the company signed an unconditional available bank amount limit of about RMB 34.7 billion, of which the used amount limit was RMB 16.8 billion, thus the remaining available bank amount limit was about RMB 17.9 billion. In this year, the company repaid bank loans of about RMB 11.3 billion, and the balance of bank loans was RMB 30.2 billion.
XI.During the reporting period the situation of performing the related agreement or commitment in the corporate bond prospectus
The company had committed to pay the principal and interests to the bondholders according to the stipulations of the prospectus of “Yudean Bonds” issuance. In the reporting period, the company strictly performed the
commitment, and on March 20, 2017, the company paid the bond interests to all the bondholders registered by China Securities Depository and Clearing Co., Ltd. Shenzhen Branch as of the afternoon time of March 17, 2017 when the trading in Shenzhen Stock Exchange was closed.
XII.Major events occurring in the period of report
Nil
XIII.Whether there is a guarantor corporate bonds
□ Yes√No
Guangdong Electric Power Development Co., Ltd. 2017Annual Report XI. Financial Report
I. Audit report
|||
|-|-|
|Type of audit opinion|Unqualified audit opinion|
|Date for signing the auditor’s report|April 26,2018|
|Name of audit firm|PWC Certified Public Accountants (special general partnership)|
|Auditing file No.|PWC ZTSZD No.(2018)10033|
|Certified public accountant's name|Wang Bin, Chen Junjun|

Auditor’s Report GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
FINANCIAL STATEMENTS AND
AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2017
Auditor’s Report Guangdong Electric Power Development Co., Ltd.
Financial Statements and Auditor's Report
For the Year Ended 31 December 2017
Page
Auditor’s Report 103-109
Financial statements for the year ended 31 December 2017
Consolidated and company balance sheets 110-113
Consolidated and company income statements 114-116
Consolidated and company cash flow statements 117-120
Consolidated statement of changes inowners’ equity 121-122
Company statement of changes inowners’ equity 123-124
Notes to the financial statements 125-266
Supplementary information 267-268
Auditor’s ReportAuditor’s Report
PwC ZT Shen Zi (2018) No. 10033 (Page 1 of 7) To the Board of Directors 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 2017;
• 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 inowners’ 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 andcompany’s financial position of Guangdong Electric Power as at 31 December 2017, and their financial performance and cash flows for the year then ended in accordance with the requirements of the Accounting Standards for Business Enterprises (“CASs”).
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our responsibilities under those standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of Guangdong Electric Power in accordance with the Code of Ethics for Professional Accountants of the Chinese Institute of Certified Public Accountants (“CICPA Code”), and we have fulfilled our other ethical responsibilities in accordance with the CICPA Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matters identified in our audit are summarised as follows:
• impairment of coal-fired power related available-for-sale financial assets, fixed assets and construction in progress
• changes in depreciation period and residual values of fixed assets
Auditor’s Report PwC ZT Shen Zi (2018) No. 10033 (Page 2 of 7) Key Audit Matters(Cont’d)
Key Audit Matters How our audit addressed key audit matters
(1) impairment of coal-fired power related 1. Based on our understanding of the businesses available-for-sale financial assets, fixed assets and engaged by Guangdong Electric Power and its construction in progress subsidiaries (“Yudean Group”) and the requirements of relevant accounting standards, Refer to Note II(28)(a), IV(8), (12) and (13) to the we evaluated the asset groups identified by financial statements. management and how assets are allocated to each asset group.
As Guangdong ElectricPower’s individual
subsidiaries and investees that are engaged in
2. Based on our understanding of the businesses of coal-fired power generation are experiencing
Yudean Group and the industry in which Yudean continuing operating losses, management
Group operates, we challenged the considers thatthere’s indication that power
reasonableness of the assumptions applied by generation asset groups (mainly including fixed
management in calculating present value of assets and construction in progress) and
available-for-sale financial assets recognised for
estimated future cash flows are reasonable. investments in above investees may be impaired.
 Future sales amount of electricity - We Inmanagement’s judgement, the above asset reviewed power generation quato allocated togroups’ fair value less costs to sell cannot be related power plants and long-term electricity reliably measured, therefore, present value of
sales agreement. We inquired management to estimated future cash flows for related assets and
evaluate their opinion on the development of asset groups is calculated to assess whether
coal-fired power industry;
carrying amounts of fixed assets, available-for-sale
financial assets and construction in progress with
indication of impairment as at 31 December 2017 On-grid electricity price - We reviewed related are impaired. It is expected that the calculation of plants’ on-grid electricity price stipulated by present value of estimated future cash flows Guangdong Provincial Development and involvesmanagement’s significant judgements, Reform Commission. We compared on-grid including estimates on future sales amount of
electricity price with its historical tendencies electricity, on-grid electricity price, price of coal
and predictions on economy and industry, and used in power generation, other operating cost,
discussed with management on whether the capital expenditure and discount rates used in
on-grid electricity price in the predicted period calculation.
is reasonable;
Based on the results of the above impairment test,
 Price of coal used in power generation - we in 2017 the Guangdong Electric Power made
provisions of RMB 25,010,686 for impairment of
compared the price of coal used in power available-for-sale financial assets and RMB generation with its historical tendencies, and 87,911,775 for impairment of construction in discussed with management on whether the progress. assumptions on price of coal used in power generation are reasonable;
 Other operating cost - we reviewed whether the movements in other operating cost are in agreement with changes in driving factor of cost;
Auditor’s Report PwC ZT Shen Zi (2018) No. 10033 (Page 3 of 7) Key Audit Matters(Cont’d)
(1) impairment of coal-fired power related Capital expenditure - we reviewed the capital available-for-sale financial assets, fixed assets and expenditures to check whether they are in construction inprogress(Cont’d) agreement with related budget of construction in progress and approved capital cost plan. As the carrying amounts of available-for-sale
financial assets, fixed assets and construction in Net cash flows from disposal of assets - we progress with indication of impairment are
discussed with management regarding the significant to the consolidated financial
basis on which the net cash flows from disposal statements of Guangdong Electric Power, and the
of assets and asset groups at the end of their impairment test involves management’s
useful lives was estimated, and we reviewed significant estimates and judgements, impairment
of available-for-sale financial assets, fixed assets
the recent transaction information of and construction in progress is identified as a key comparable generation units that existed or audit matter. are under construction at the end of their useful lives to assess whethermanagement’s prediction on net cash flows from disposal of assets is reasonable;
 Discount rate - we introduced the assessment from valuation expert to predict whether the discount rate used in estimating the present value of future cash flows is reasonable and whether it falls within the range applied by other companies in industry, as well as considering the impact of capital cost of related asset group on discount rate.
3. Reviewed the inputs and formula that were used to estimate present value of estimated future cash flows to verify the accuracy of calculation results;
4. Considering the remaining useful lives of fixed assets, we challenged the reasonableness of long-term growth rate that was used to estimate the present value of future cash flows for the period beyond 5-year prediction period to the end of their useful lives;
Conducted sensitivity analysis on discount rate and other key assumptions applied by management, evaluating how the changes in key assumptions will result in different results to further evaluate ifthere’s indication that management is partial in selecting parameters of key assumptions.
Auditor’s Report PwC ZT Shen Zi (2018) No. 10033 (Page 4 of 7) Key Audit Matters(Cont’d)
(1) impairment of coal-fired power related We found thatmanagement’s assumptions on available-for-sale financial assets, fixed assets and impairment of available-for-sale financial assets, fixed construction inprogress(Cont’d) assets and construction in progress are supported by appropriate evidence.
(2) changes in depreciation period and residual 1. Obtained an understanding of and made an values of fixed assets evaluation on Yudean Group's internal control regarding changes in accounting estimates, and Please refer to Note II(31) and Note IV(12) to the
tested related internal control;
financial statements.
2. Inquired of management about the impact of Per approval from Board of Directors of Yudean changes in economic environment and Group, depreciation period and residual values of technology improvement on depreciation period certain fixed assets are adjusted since 1 June 2017.
and residual values of fixed assets. Challenged The adjustment will result in a decrease of
the reasonableness of the reason for which approximately RMB 377,000,000 in deprecation
depreciation period and residual values of fixed of fixed assets for the year ended 31 December
assets are changed and compared with other 2017, and an increase of approximately RMB
listed companies in the industry, and analysed 212,000,000 in net profit attributable to equity
owners of the Company for the year ended 31
whether the adjusted depreciation period and December 2017. residual values of fixed assets applied by Yudean Group fall within the range applied by other The estimates on depreciation period and residual
listed companies;
values of related fixed assets place great reliance
onmanagement’s judgements, and could be
3. Obtained and reviewed the analysis opinion on affected bymanagement’s partiality. The amounts
depreciation period and residual values of fixed affected is significant to the financial statements of
assets provided by the Manufacturing and Yudean Group. Therefore, change in useful lives
Technique Department of Yudean Group, and and net residual values of fixed assets is identified
verified whether the changes agree with the as a key audit matter.
analysis opinion. Discussed with personnel from the Manufacturing and Technique Department and checked some of their qualification certificates on a sampling basis to evaluate their capability to analyse the depreciation period and residual values of fixed assets;
4. Recalculated the impact of changes in accounting estimates on financial statements, and reviewed whether they are appropriately disclosed.
We found thatmanagement’s assumptions on depreciation period and residual values of fixed assets are supported by appropriate evidence.
Auditor’s Report PwC ZT Shen Zi (2018) No. 10033 (Page 5 of 7) Other Information
Management of Guangdong Electric Power is responsible for the other information. The other information comprises all of the information included in 2017 annual report of Guangdong Electric Power other than the financial statements and ourauditor’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 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 ElectricPower’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.
Audit committee is responsible for overseeing Guangdong ElectricPower’s financial reporting process.
Auditor’s Report PwC ZT Shen Zi (2018) No. 10033 (Page 6 of 7)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 anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with CSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness ofmanagement’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 ElectricPower’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in ourauditor’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 ourauditor’s report. However, future events or conditions may cause Guangdong Electric Power to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within Guangdong Electric Power to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Auditor’s Report PwC ZT Shen Zi (2018) No. 10033 (Page 7 of 7)Auditor’s Responsibilities for the Audit of the Financial Statements(Cont’d)
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in ourauditor’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.
PicewaterhouseCoopers Zhong Tian LLP Signing CPA
———————————
Wang Bin
Shanghai, thePeople’s Republic of China (Engagement Partner)
26 April 2018 Signing CPA
———————————
Chen Junjun
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) ASSETS Note 31 December 2017 31 December 2016 Current assets
Cash at bank and on hand IV(1) 4,996,580,490 5,184,873,650 Accounts receivable IV(2) 2,826,237,259 2,776,061,909 Advances to suppliers IV(3) 826,786,279 1,064,822,122 Interest receivable IV(4) 14,923,771 16,681,118 Other receivables IV(5) 208,907,993 133,499,956 Inventories IV(6) 1,527,634,773 1,513,153,241 Current portion of non-current assets 29,563,053 - Other current assets IV(7) 1,137,582,469 882,055,591 Total current assets 11,568,216,087 11,571,147,587 Non-current assets
Available-for-sale financial assets IV(8) 1,243,633,985 1,279,387,994 Long-term receivables IV(9) 84,358,065 136,075,412 Long-term equity investments IV(10) 5,801,006,412 5,432,637,750 Investment properties IV(11) 8,296,639 8,932,237 Fixed assets IV(12) 40,996,206,316 41,814,685,521 Construction in progress IV(13) 8,467,687,340 6,343,293,763 Construction materials IV(14) 35,869,033 1,496,854 Fixed assets pending for disposal IV(15) 14,662,233 4,304,229 Intangible assets IV(16) 1,665,784,490 1,707,490,221 Goodwill IV(17) 27,486,780 27,486,780 Long-term prepaid expenses IV(18) 27,007,371 34,611,712 Deferred tax assets IV(19) 372,553,039 303,929,269 Other non-current assets IV(20) 694,647,533 2,011,524,431 Total non-current assets 59,439,199,236 59,105,856,173 TOTAL ASSETS 71,007,415,323 70,677,003,760
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. CONSOLIDATED BALANCE SHEET(CONT’D) AS AT 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) LIABILITIES ANDOWNERS’ EQUITY Note 31 December 2017 31 December 2016 Current liabilities
Short-term borrowings IV(22) 9,270,000,000 5,758,860,000 Notes payable IV(23) 297,611,800 1,330,480,837 Accounts payable IV(24) 2,219,027,261 3,167,250,446 Advance from customers IV(25) 1,938,223 12,456,360 Employee benefits payable IV(26) 157,738,628 144,122,128 Taxes payable IV(27) 277,285,402 326,919,844 Interest payable IV(28) 98,553,104 83,648,793 Dividends payable IV(29) 9,703,930 9,703,930 Other payables IV(30) 3,908,512,671 3,292,556,995 Current portion of non-current liabilities IV(31) 3,012,690,360 1,433,644,523 Other current liabilities IV(32) - 1,723,070,000 Total current liabilities 19,253,061,379 17,282,713,856 Non-current liabilities
Long-term borrowings IV(33) 19,465,723,869 19,888,172,037 Debentures payable IV(34) 698,168,211 1,900,124,468 Long-term payables IV(35) 1,548,259,241 1,917,552,654 Payables for specific projects IV(36) 64,605,011 26,675,385 Deferred income IV(37) 142,520,263 125,650,072 Long-term employee benefits payable IV(38) 91,622,907 122,832,249 Deferred tax liabilities IV(19) 24,188,860 37,718,277 Other non-current liabilities IV(39) 16,405,569 39,000,000 Total non-current liabilities 22,051,493,931 24,057,725,142 Total liabilities 41,304,555,310 41,340,438,998 Owners' equity
Share capital IV(40) 5,250,283,986 5,250,283,986 Capital surplus IV(41) 5,004,250,685 5,003,007,478 Other comprehensive income IV(42) 137,001,523 145,059,015 Surplus reserves IV(43) 7,590,363,724 6,845,001,818 Undistributed profits IV(44) 5,713,290,735 6,135,494,928 Total equity attributable to equity owners of
the Company 23,695,190,653 23,378,847,225 Minority interests 6,007,669,360 5,957,717,537 Total owners' equity 29,702,860,013 29,336,564,762 TOTAL LIABILITIES AND OWNERS' EQUITY 71,007,415,323 70,677,003,760 The accompanying notes form an integral part of these financial statements.
Huang Zhenhai Liu Wei Meng Fei
Legal representative Principal in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. COMPANY BALANCE SHEET AS AT 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) ASSETS Note 31 December 2017 31 December 2016 Current assets
Cash at bank and on hand 429,724,538 326,073,538 Accounts receivable XV(1) 195,462,150 212,343,198 Advances to suppliers 57,189,222 79,990,745 Interest receivable 1,698,504 723,819 Dividends receivable 17,536,791 - Other receivables XV(2) 27,984,304 122,933,749 Inventories 151,849,683 149,462,926 Other current assets - 25,650,427 Total current assets 881,445,192 917,178,402 Non-current assets
Available-for-sale financial assets 1,243,633,985 1,279,387,994 Long-term receivables 401,460,000 335,000,000 Long-term equity investments XV(3) 23,370,412,702 22,896,735,913 Investment properties 8,296,639 8,932,237 Fixed assets 1,054,459,265 1,049,906,014 Construction in progress 49,949,168 43,039,781 Intangible assets 88,660,312 92,152,556 Deferred tax assets 43,591,562 - Other non-current assets 356,004,000 672,504,000 Total non-current assets 26,616,467,633 26,377,658,495 TOTAL ASSETS 27,497,912,825 27,294,836,897
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY BALANCE SHEET(CONT’D) AS AT 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) LIABILITIES AND OWNERS' EQUITY 31 December 2017 31 December 2016 Current liabilities
Short-term borrowings 1,700,000,000 300,000,000 Accounts payable 221,325,935 517,973,144 Employee benefits payable 32,124,015 31,813,417 Taxes payable 38,907,195 9,688,606 Interest payable 49,765,772 48,091,022 Dividends payable 9,703,930 9,703,930 Other payables 119,738,967 93,522,121 Current portion of non-current liabilities 1,197,935,476 - Other current liabilities - 1,216,583,014 Total current liabilities 3,369,501,290 2,227,375,254 Non-current liabilities
Long-term borrowings 1,500,000,000 1,500,000,000 Debentures payable - 1,196,982,619 Payables for specific projects 8,775,514 - Deferred income 53,869,596 59,533,388 Long-term employee benefits payable 22,265,631 23,445,887 Deferred tax liabilities - 12,508,093 Total non-current liabilities 1,584,910,741 2,792,469,987 Total liabilities 4,954,412,031 5,019,845,241 Owners' equity
Share capital 5,250,283,986 5,250,283,986 Capital surplus 5,605,794,602 5,605,752,163 Other comprehensive income 137,001,523 145,059,015 Surplus reserves 7,590,363,724 6,845,001,818 Undistributed profits 3,960,056,959 4,428,894,674 Total owners' equity 22,543,500,794 22,274,991,656 TOTAL LIABILITIES AND OWNERS' EQUITY 27,497,912,825 27,294,836,897 The accompanying notes form an integral part of these financial statements.
Huang Zhenhai Liu Wei Meng Fei
Legal representative Principal in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Note 2017 2016 Revenue IV(45) 26,643,792,057 22,681,120,022 Less: Cost of sales IV(45) (23,292,288,669) (17,793,626,382) Taxes and surcharges IV(46) (243,872,444) (299,690,966) Selling and distribution expenses (8,223,996) (2,807,165) General and administrative expenses IV(47) (654,998,125) (775,880,023) Financial expenses - net IV(48) (1,279,255,541) (1,369,698,178) Asset impairment losses IV(49) (145,754,374) (758,270,129) Add: Investment income IV(50) 489,086,549 341,364,663 Including: Share of profit of associates and joint
ventures 436,407,641 290,956,937 Losses on disposal of assets IV(51) (4,720,404) (3,723,321) Other income IV(52) 50,872,822 - Operating profit 1,554,637,875 2,018,788,521 Add: Non-operating income IV(53) 9,464,974 99,242,840 Less: Non-operating expenses IV(54) (9,892,374) (213,124,201) Total profit 1,554,210,475 1,904,907,160 Less: Income tax expenses IV(55) (416,489,316) (618,844,889) Net profit 1,137,721,159 1,286,062,271 Classified by continuity of operations
Net profit from continuing operations 1,137,721,159 1,286,062,271 Net profit from discontinued operations - - Classified by ownership of the equity
Attributable to equity owners of the
Company 743,180,431 936,534,941 Minority interests 394,540,728 349,527,330 Other comprehensive income, net of tax
Attributable to equity owners of the Company (8,057,492) (100,649,700) Other comprehensive income that will be
subsequently reclassified to profit or loss
Share of the other comprehensive income
of the investee accounted for using
equity method which will be reclassified
subsequently to profit and loss - (439,064) Gains or losses arising from changes in fair
value of available-for-sale financial assets (8,057,492) (100,210,636) Total comprehensive income 1,129,663,667 1,185,412,571 Attributable to equity owners of the Company 735,122,939 835,885,241
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Attributable to minority interests 394,540,728 349,527,330 Earnings per share
Basic earnings per share (RMB Yuan) IV(56) 0.14 0.18 Diluted earnings per share (RMB Yuan) IV(56) 0.14 0.18 The accompanying notes form an integral part of these financial statements.
Huang Zhenhai Liu Wei Meng Fei
Legal representative Principal in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Note 2017 2016 Revenue XV(4) 2,117,499,891 2,029,877,030 Less: Cost of sales XV(4) (2,019,135,513) (1,648,261,528) Taxes and surcharges (10,188,705) (21,983,992) Selling and distribution expenses (46,598) (13,886) General and administrative expenses (108,376,528) (133,031,153) Financial expenses - net (197,178,583) (210,739,704) Asset impairment losses (673,578,111) (85,722,207) Add: Investment income XV(5) 1,531,007,381 2,206,631,861 Including: Investment income from associates and
joint ventures 430,233,195 286,517,653 Losses on disposal of assets (1,847,006) (139,571) Other income 7,003,961 - Operating profit 645,160,189 2,136,616,850 Add: Non-operating income 759,723 8,132,110 Less: Non-operating credits/(expenses) (1,034,213) (616,359) Total profit 644,885,699 2,144,132,601 Less: Income tax expenses 51,661,211 (14,527,156) Net profit 696,546,910 2,129,605,445 Classified by continuity of operations
Net profit from continuing operations 696,546,910 2,129,605,445 Net profit from discontinued operations - - Classified by ownership of the equity
Attributable to equity owners of the Company 696,546,910 2,129,605,445 Minority interests - - Other comprehensive income, net of tax (8,057,492) (100,649,700) Other comprehensive income that will be
subsequently reclassified to profit or loss
Share of the other comprehensive income of the
investee accounted for using equity method
which will be reclassified subsequently to profit
and loss - (439,064) Gains or losses arising from changes in fair value of
available-for-sale financial assets (8,057,492) (100,210,636) Total comprehensive income 688,489,418 2,028,955,745 The accompanying notes form an integral part of these financial statements.
Huang Zhenhai Liu Wei Meng Fei
Legal representative Principal in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. CONSOLIDATED CASH FLOW STATEMENT(CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Note 2017 2016 Cash flows from operating activities
Cash received from sales of goods or rendering
of services 31,015,193,180 25,046,349,439 Refund of taxes and surcharges 4,351,929 5,548,556 Cash received relating to other operating
activities IV(58)(a) 149,296,827 175,522,880 Sub-total of cash inflows 31,168,841,936 25,227,420,875 Cash paid for goods and services (23,504,495,193) (11,718,985,740) Cash paid to and on behalf of employees (1,689,157,554) (1,784,621,548) Payments of taxes and surcharges (1,812,415,045) (2,542,268,475) Cash paid relating to other operating activities IV(58)(b) (486,739,641) (476,769,294) Sub-total of cash outflows (27,492,807,433) (16,522,645,057) Net cash flow from operating activities IV(59)(a) 3,676,034,503 8,704,775,818 Cash flows from investing activities
Cash received from returns on investments 267,717,887 513,955,425 Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 4,437,274 20,778,986 Sub-total of cash inflows 272,155,161 534,734,411 Cash paid to acquire fixed assets,
intangible assets and
other long-term assets (3,408,163,705) (3,315,903,498) Cash paid to acquire investments (147,000,000) - Sub-total of cash outflows (3,555,163,705) (3,315,903,498) Net cash flows used in investing activities (3,283,008,544) (2,781,169,087)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. CONSOLIDATED CASH FLOW STATEMENT(CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Note 2017 2016 Cash flows from financing activities
Cash received from capital contributions 121,691,869 74,802,100 Cash received from borrowings 14,837,423,033 9,944,710,691 Cash received from issuing debentures and
short-term financing notes - 2,397,375,000 Cash received relating to other financing
activities IV(58)(c) 42,438 90,021,217 Sub-total of cash inflows 14,959,157,340 12,506,909,008 Cash repayments of borrowings (13,016,778,066) (14,079,473,947) Cash payments for distribution of dividends,
profits or interest expenses (2,019,541,954) (3,627,200,214) Cash paid for finance leases (504,155,684) (766,374,653) Sub-total of cash outflows (15,540,475,704) (18,473,048,814) Net cash flows used in financing activities (581,318,364) (5,966,139,806) Effect of foreign exchange rate changes on
cash and cash equivalents (755) - Net decrease in cash and cash equivalents IV(59)(a) (188,293,160) (42,533,075) Add: Cash and cash equivalents at the
beginning of the year 5,184,873,650 5,227,406,725 Cash and cash equivalents at the end of the
year IV(59)(b) 4,996,580,490 5,184,873,650 The accompanying notes form an integral part of these financial statements.
Huang Zhenhai Liu Wei Meng Fei
Legal representative Principal in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. COMPANY CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) 2017 2016 Cash flows from operating activities
Cash received from sales of goods or rendering of services 2,486,441,357 2,297,109,979 Refund of taxes and surcharges 160,605 - Cash received relating to other operating activities 15,203,185 24,560,463 Sub-total of cash inflows 2,501,805,147 2,321,670,442 Cash paid for goods and services (2,185,038,145) (1,170,875,526) Cash paid to and on behalf of employees (318,314,615) (350,301,726) Payments of taxes and surcharges (27,918,406) (207,700,042) Cash paid relating to other operating activities (75,445,028) (50,621,481) Sub-total of cash outflows (2,606,716,194) (1,779,498,775) Net cash flow from operating activities (104,911,047) 542,171,667 Cash flows from investing activities
Cash received from disposal of investments 100,000,000 300,000,000 Cash received from returns on investments 1,291,979,756 2,401,308,751 Net cash received from disposal of fixed assets, intangible
assets and other long-term assets 208,142 54,914 Sub-total of cash inflows 1,392,187,898 2,701,363,665 Cash paid to acquire investments (651,600,000) (1,192,880,000) Cash paid to acquire fixed assets, intangible assets and other
long-term assets (96,396,893) (88,163,938) Sub-total of cash outflows (747,996,893) (1,281,043,938) Net cash flows from investing activities 644,191,005 1,420,319,727 Cash flows from financing activities
Cash received from borrowings 2,580,000,000 1,000,000,000 Cash received from issuing debentures and short-term
financing notes - 1,198,650,000 Cash received relating to other financing activities 42,438 21,217 Sub-total of cash inflows 2,580,042,438 2,198,671,217 Cash repayments of borrowings (2,380,000,000) (3,100,000,000) Cash payments for distribution of dividends, profits or interest
expenses (635,670,642) (1,418,039,712) Sub-total of cash outflows (3,015,670,642) (4,518,039,712) Net cash flows used in financing activities (435,628,203) (2,319,368,495) Effect of foreign exchange rate changes on cash and cash
equivalents (755) - Net increase/(decrease) in cash and cash equivalents 103,651,000 (356,877,101) Add: Cash and cash equivalents at the beginning of the year 326,073,538 682,950,639
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. COMPANY CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Cash and cash equivalents at the end of the year 429,724,538 326,073,538 The accompanying notes form an integral part of these financial statements.
Huang Zhenhai Liu Wei Meng Fei
Legal representative Principal in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. CONSOLIDATED STATEMENT OF CHANGES INOWNERS’ EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Note Attributable to equity owners of the Company
Other
Share
Capital comprehensive Surplus Undistributed Minority Total owners' capital surplus income reserves profits interests equity Balance at 1 January 2017 5,250,283,986 5,003,007,478 145,059,015 6,845,001,818 6,135,494,928 5,957,717,537 29,336,564,762 Movements for the year ended 31
December 2017
Total comprehensive income - - (8,057,492) - 743,180,431 394,540,728 1,129,663,667 Capital contribution and withdrawal
by owners - - - - - 138,286,300 138,286,300 Profit distribution
Appropriation to surplus reserves IV(43) - - - 745,361,906 (745,361,906) - - Profit distribution to equity owners IV(44) - - - - (420,022,718) (483,389,821) (903,412,539) Others - 1,243,207 - - - 514,616 1,757,823 Balance at 31 December 2017 5,250,283,986 5,004,250,685 137,001,523 7,590,363,724 5,713,290,735 6,007,669,360 29,702,860,013
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY(CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Note Attributable to equity owners of the Company
Other
Share
Capital comprehensive Surplus Undistributed Minority Total owners' capital surplus income reserves profits interests equity Balance at 1 January 2016 5,250,283,986 5,007,077,158 245,708,715 5,812,191,775 7,439,335,347 6,467,598,416 30,222,195,397 Movements for the year ended 31
December 2016
Total comprehensive income - - (100,649,700) - 936,534,941 349,527,330 1,185,412,571 Capital contribution and withdrawal
by owners - - - - - 74,802,100 74,802,100 Profit distribution
Appropriation to surplus
reserves IV(43) - - - 1,032,810,043 (1,032,810,043) - - Profit distribution to equity
owners IV(44) - - - - (1,207,565,317) (934,210,309) (2,141,775,626) Share of interest in associates based IV(41)
on shareholding - (4,090,897) - - - - (4,090,897) Others - 21,217 - - - - 21,217 Balance at 31 December 2016 5,250,283,986 5,003,007,478 145,059,015 6,845,001,818 6,135,494,928 5,957,717,537 29,336,564,762 The accompanying notes form an integral part of these financial statements.
Huang Zhenhai Liu Wei Meng Fei
Legal representative Principal in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. COMPANY STATEMENT OF CHANGES INOWNERS’ EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Note Other
Share Capital
comprehensive Surplus Undistributed Total owners' capital surplus income reserves profits equity Balance at 1 January 2017 5,250,283,986 5,605,752,163 145,059,015 6,845,001,818 4,428,894,674 22,274,991,656 Movements for the year ended 31
December 2017
Total comprehensive income - - (8,057,492) - 696,546,910 688,489,418 Profit distribution
Appropriation to surplus reserves IV(43) - - - 745,361,906 (745,361,906) - Profit distribution to equity owners IV(44) - - - - (420,022,718) (420,022,718) Others - 42,438 - - - 42,438 Balance at 31 December 2017 5,250,283,986 5,605,794,601 137,001,523 7,590,363,724 3,960,056,960 22,543,500,794
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. COMPANY STATEMENT OF CHANGES IN OWNERS' EQUITY(CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Other
Note Share Capital comprehensive Surplus Undistributed Total owners' capital surplus income reserves profits equity Balance at 1 January 2016 5,250,283,986 5,609,821,843 245,708,715 5,812,191,775 4,539,664,589 21,457,670,908 Movements for the year ended
31 December 2016
Total comprehensive income - - (100,649,700) - 2,129,605,445 2,028,955,745 Profit distribution
Appropriation to surplus reserves IV(43) - - - 1,032,810,043 (1,032,810,043) - Profit distribution to equity owners IV(44) - - - - (1,207,565,317) (1,207,565,317) Share of interest in associates based on
shareholding - (4,090,897) - - - (4,090,897) Others - 21,217 - - - 21,217 Balance at 31 December 2016 5,250,283,986 5,605,752,163 145,059,015 6,845,001,818 4,428,894,674 22,274,991,656 The accompanying notes form an integral part of these financial statements.
Huang Zhenhai Liu Wei Meng Fei
Legal representative Principal in charge of accounting Head of accounting department
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) I General information
Guangdong Electric Power Development Co., Ltd. (the “Company”) is a limited liability company jointly established by Guangdong Electric Power Holding Company, China Construction Bank Guangdong Province Trust Investment Company, Guangdong Power Development Co., Ltd., Guangdong International Trust and China Guangfa Bank (currently named as Guangdong Guangkong Group Co., Ltd.). The address of theCompany’s registered office and head office isF33~F36 South Tower Building of Yudean Square on 2nd Tianhe East Road, Guangzhou, Guangdong Province, thePeople’s Republic of China. TheCompany’s parent company is Guangdong Province Yudean Group Co., Ltd. (“Yudean”) and its ultimate parent company is the State-owned Assets Supervision and Administration Commission of thePeople’s Government of Guangdong Province.
TheCompany’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 2017, the total share capital of the Company was RMB 5,250,283,986 with par value of RMB 1 per share.
The Company and its subsidiaries (collectively referred to as “the Group”) are principally engaged in the businesses of developing and operating electric power plants in Guangdong Province, the PRC. For the information of theCompany’s subsidiaries included in the consolidation scope in the current year, please refer to Note VI.
The financial statement have been authorised for issue by the Board of Directors of the Company on April, 26 2018.
II Summary of significant accounting policies and accounting estimates
The Group determines its specific accounting policies and accounting estimates on the basis of the production and operation feature, which is reflected in: the criteria for determining impairment for available-for-sale equity instruments (Note II(9)), depreciation of fixed assets (Note II(14), impairment of long-term assets (Note II(19)), and recognition of deferred income taxes (Note II(25)), etc.
Critical judgement for determining significant accounting policies by the Group are set forth in Note II(29). (1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter collectively referred to as “the Accounting Standards for Business Enterprises” or “CAS”) and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by the China Securities Regulatory Commission.
As at 31 December 2017, theGroup’s net current liabilities amounted to RMB 7.69 billion. Capital commitments contracted for by the Group amounted to RMB 4.97 billion, among which the capital expenditure due within one year amounted to RMB 2.29 billion. Therefore, the Group is to some extent exposed to liquidity risk.
The reason for net current liabilities is that a portion of theGroup’s capital expenditure is backed by short-term borrowings and funds in hand. Management of the Company plans to take the following measures to ensure that the Group can continuously obtain sufficient working capital to liquidate debts due within 12 months starting from 31 December 2017, therefore, the financial statements are prepared on a going concern basis. (a) The Group continuously generates profit after its generator sets have successively been put into production in recent years. Management expects stable cash inflows from operating activities in the future; and
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(1) Basis of preparation(Cont'd)
(b) The Group maintains good relations of long-term cooperation with financial institutions (including theCompany’s associate Guangdong Yudean Finance Co., Ltd. (“Yudean Finance”)) in order to obtain sufficient financing credit lines. As at 31 December 2017, theGroup’s available line of credit from financial institutions amounted to approximately RMB 17.93 billion, with RMB 6 billion from Yudean Finance and RMB 11.93 billion from other commercial banks, among which approximately RMB 5.6 billion is due before 31 December 2018. The management has communicated with the financial institutions and hence expected the line of credit due before 31 December 2018 to renew the term for another 12 months.
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended 31 December 2017 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present the consolidated and thecompany’s financial position of the Company as at 31 December 2017 and their financial performance, cash flows and other information for the year then ended.
(3) Accounting year
TheCompany’s accounting year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency is Renminbi (RMB).
(5) Business combinations
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are measured at the carrying amount. The difference between the carrying amount of the net assets obtained from the combination and the carrying amount of the consideration paid for the combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amount of the equity or debt securities.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at fair value at the acquisition date. Where the cost of the combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
(6) Preparation of consolidated financial statements
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(6) Preparation of consolidated financial statements (Cont'd)
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement. In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiariesowner‘s equity and the portion of subsidiaries net profits and losses and comprehensive incomes for the period not attributable to the Company are recognised as minority interests, net profit attributed to minority interests and total comprehensive incomes attributed to minority interests and presented separately in the consolidated financial statements under owner's equity, net profits and total comprehensive income respectively. Unrealised profits and losses resulting from the sales of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to owners of the Company. Unrealised profits and losses resulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to owners of the parent and net profit attributed to minority interests in accordance with the allocation proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the sales of assets by one subsidiary to another are eliminated and allocated between net profit attributable to owners of the parent and net profit attributed to minority interests in accordance with the allocation proportion of the parent in the subsidiary.
If the accounting treatment of a transaction is inconsistent in the financial statements at the Group level and at the Company or its subsidiary level, adjustment will be made from the perspective of the Group.
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amount of cash and are subject to an insignificant risk of changes in value.
(8) Foreign currency translation
Foreign currency transactions are translated into recording currency using the exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(9) Financial instrument
(a) Financial assets
(i) Classifications of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, receivables, available-for-sale financial assets and held-to-maturity investments. The classification of financial assets depends on theGroup’s intention and ability to hold the financial assets. During the current year, The Group's financial assets include receivables and available-for-sale financial assets.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categories at initial recognition. Available-for-sale financial assets are listed as other current assets in the balance sheet if management intends to dispose of them within 12 months from the balance sheet date.
(ii) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the financial instrument. For receivables and available-for-sale financial assets, transaction costs that are attributable to acquisition of the financial assets are included in their initially recognised amounts.
Available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measured at amortised cost using the effective interest method.
Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial assets are derecognised, the cumulative gains or losses previously recognised directly into equity is recycled into profit or loss for the current period.
(iii) Impairment of financial assets
The Group assesses the carrying amounts of financial assets other than those at fair value through profit or loss at each balance sheet date. If there is objective evidence that a financial asset is impaired, an impairment loss is provided for.
Objective evidence indicating impairment of financial assets refers to the matter that actually occurs after the initial recognition of financial assets, will affect estimated future cash flows of financial assets, and of which impact can be reliably measured by the Group.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(9) Financial instruments(Cont’d)
(a) Financial assets (Cont'd)
(iii) Impairment of financial assets(Cont’d)
Objective evidence which indicates the occurrence of impairment for available-for-sale equity instruments includes significant or non-temporary decrease of fair value of investment in equity instruments. The group individually assesses available-for-sale investments in equity instruments at each balance sheet date. If its fair value as at balance sheet date is lower than original investment cost by50% or above or remains below the original investment cost over a year (inclusive), it is impaired; If its fair value as at balance sheet date is lower than original investment cost by20%(including20%) or above but not excessing50%, the Group will consider other factors such as price fluctuations to determine whether it is impaired or not. The Group calculates the initial investment cost of available-for-sale equity instruments by using the weighted average method.
When an impairment loss on a financial asset carried at amortised cost has incurred, the amount of the impairment loss is provided for at the difference between theasset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses not incurred). If there is objective evidence that the value of the financial asset is recovered and the recovery is related objectively to an event occurring after the impairment has been recognised, the previously recognised impairment loss is reversed and the amount of reversal is recognised in profit or loss.
When an impairment loss on available-for-sale financial assets measured at fair value has occurred, the cumulative loss arising from the decline in fair value that has been recognised directly in equity is removed from equity and recognised as impairment loss. For an investment in debt instrument classified as available-for-sale on which the impairment loss has been recognised, if, in a subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed through profit or loss for the current period. For an investment in an equity instrument classified as available-for-sale on which the impairment loss has been recognised, the increase in its fair value in a subsequent period is recognised directly in equity.
If an impairment loss on an available-for-sale financial asset measured at cost incurs, the amount of loss is measured at the difference between theasset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset and recognised in profit or loss for the current period. The previously recognised impairment loss will not be reversed in subsequent periods.
(iv) Derecognition of financial assets
A financial asset is derecognised when any of the below criteria is met: (i) the contractual rights to receive the cash flows from the financial asset expire; (ii) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of ownership of the financial asset to the transferee; or (iii) the financial asset has been transferred and the Group has not retained control of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and the cumulative changes in fair value that had been recognised directly in equity, is recognised in profit or loss.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(9) Financial instruments(Cont’d)
(b) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair value through profit or loss and other financial liabilities. The financial liabilities of the Group mainly comprise other financial liabilities, including payables, borrowings, debentures payable, etc.
Payables, including accounts payable and other payables, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Borrowings and debentures payable are initially recognised at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities with maturities no more than one year (inclusive) are classified as current liabilities. Other financial liabilities with maturities over one year but are due within one year (inclusive) at the balance sheet date are classified as the current portion of non-current liabilities. Others are classified as non-current liabilities.
A financial liability is derecognised or partly derecognised when the current obligation is discharged or partly discharged. The difference between the carrying amount of the financial liability or the derecognised part of the financial liability and the consideration paid is recognised in profit or loss.
(c) Determination of 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 adopted valuation techniques applicable in the current situation and supported by adequate available data and other information, selected inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or liabilities by market participants, and gave priority to the use of relevant observable inputs. When relevant observable inputs are not available or feasible, unobservable inputs are adopted.
(10) Receivables
Receivables comprise accounts receivable and other receivables. Accounts receivable arising from sales of goods or rendering of services are initially recognised at fair value of the contractual payments from the buyers or service recipients.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(10) Receivables (Cont'd)
(a) Receivables with amounts that are individually significant and subject to separate assessment for provision for bad debts
Receivables with amounts that are individually significant are subject to separate assessment for impairment. If there exists objective evidence that the Group will not be able to collect the amount under the original terms, a provision for impairment of that receivable is made.
The criterion for determining "amounts that are individually significant" is: the five largest accounts receivable and other receivables with individual amount more than RMB 5,000,000 and all long-term receivables.
The method of providing for bad debts for those individually significant amounts is as follows: the amount of the present value of the future cash flows expected to be derived from the receivable below its carrying amount.
(b) Receivables with amounts that are not individually significant but subject to separate assessment for provision for bad debts
The reason for making separate assessment for provision for bad debts is that there exists objective evidence that the Group will not be able to collect the amount under the original terms of the receivable.
The provision for bad debts is determined based on the amount of the present value of the future cash flows expected to be derived from the receivable below its carrying amount.
TheGroup’s receivables mainly comprise receivables from sales of electricity to Guangdong Power Grid (“GPGC”), receivables due from related parties and receivables from sales of by-products. According to the historical experience and impairment tests made on an individual basis, theGroup’s undue receivables were considered to be portfolios with low credit risk, and no provision for bad debts was made.
(11) Inventories
(a) Classification
Inventories mainly comprise fuel and spare parts, and are measured at the lower of cost and net realisable value.
(b) Costing of inventories
Cost of fuel is calculated using the weighted average method. Spare parts are amortised in full amount when issued for use.
(c) Basis for determining net realisable values of inventories and method for making provision for decline in the value of inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying amounts of the inventories over their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale and related taxes.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) (d) The Group adopts the perpetual inventory system.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(12) Long-term equity investments
Long-term equity investments comprise theCompany’s long-term equity investments in its subsidiaries, and theGroup’s long-term equity investments in its joint ventures and associates.
Subsidiaries are the investees over which the Company is able to exercise control. A joint venture is a joint arrangement which is structured through a separate vehicle over which the Group has joint control together with other parties and only has rights to the net assets of the arrangement based on legal forms, contractual terms and other facts and circumstances. An associate is the investee over which the group has significant influence on its financial and operating policies.
Investments in subsidiaries are presented in theCompany’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 arising from business combination: for long-term equity investments arising from business combination involving enterprises under common control, the initial investment cost shall be the share of the carrying amount ofowners’ equity of the combined party in the consolidated financial statements of the ultimate controlling party as at the combination date; for long-term equity investments arising from business combination involving enterprises not under common control, the investment cost shall be the combination cost.
Long-term equity investments acquired other than business combination: long-term equity investments acquired by cash are initially measured at the amount of actually paid; long-term equity investments acquired by the issuance of equity shares are initially measured at the fair value of equity shares issued.
(b) Subsequent measurement and recognition of profit or loss
For long-term equity investments accounted for using the cost method, cash dividends or profit distribution declared by the investees is recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost of a long-term equity investment exceeds theGroup’s share of the fair value of theinvestee’s identifiable net assets at the acquisition date, the long-term equity investment is measured at the initial investment cost; where the initial investment cost is less than theGroup’s share of the fair value of theinvestee’s identifiable net assets at the acquisition date, the difference is included in profit or loss and the cost of the long-term equity investment is adjusted upwards accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The Group does not recognise further losses when the carrying amounts of the long-term equity investment together with any long-term interests that, in substance, form part of theGroup’s net investment in investees are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions are satisfied, the Group continues recognising the investment losses to be incurred. The changes of the Company's share of the investee's owner's equity other than those arising from the net profit or loss, other comprehensive income and profit distribution, are recognised in the Company's equity and the carrying amounts of the long-term equity investment are adjusted accordingly. The carrying amount of the investment is reduced by theGroup’s share of the profit distribution or cash dividends declared by the investees.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Unrealised gains or losses on transactions between the Group and its investees are eliminated to the extent of theGroup’s equity interest in the investees, based on which the investment income or losses are recognised. Any losses resulting from transactions between the Group and its investees, which are attributable to asset impairment losses are not eliminated.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(12) Long-term equity investments(Cont’d)
(c) Basis for determining existence of control, jointly control or significant influence over investees
Control is the power to govern an investee, so as to obtain variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor's returns. Joint control is the contractually agreed sharing of control over an arrangement, and the decision of activities relating to such arrangement requires the unanimous consent of the Group and other parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.
(d) Impairment of long-term equity 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 II(19)).
(13) Investment properties
Investment properties, including land use rights that have already been leased out and buildings that are held for the purpose of leasing, are measured initially at cost. Subsequent expenditures incurred in relation to an investment property are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are recognised in profit or loss for the period in which they are incurred.
The Group adopts the cost model for subsequent measurement of investment properties. Buildings and land use rights are depreciated or amortised to their estimated net residual values over their estimated useful lives. The estimated useful lives, the estimated net residual values that are expressed as a percentage of cost and the annual depreciation (amortisation) rates of investment properties are as follows:
Estimated useful Estimated net residual
lives values Annual depreciation rates Buildings 30 years 5% 3.17% When an investment property is transferred to owner-occupied properties, it is reclassified as fixed asset at the date of the transfer and the carrying amounts of fixed asset is determined based on fair value of investment property at the date of transfer.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(13) Investment properties(Cont’d)
The investmentproperty’s estimated useful life, net residual value and depreciation (amortisation) method applied are reviewed and adjusted as appropriate at each year-end.
An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sale, transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.
(14) Fixed assets
(a) Recoginition and initial measurement of fixed assets
Fixed assets comprise buildings, power generation equipment, motor vehicles and other equipment.
Fixed assets are recognised when it is probable that the related economic benefits will flow to the Group and the costs can be reliably measured. Fixed assets purchased or constructed are initially measured at cost at the time of acquisition. The fixed assets contributed by the state shareholders at the reorganisation of the Company into a corporation are recognised based on the evaluated amounts as approved by the state-owned assets administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss for the period in which they are incurred.
(b) Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated 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.
On June 1 2017, the Group adjusted the estimated useful lives, the estimated net residual values (Note II(31)) of some fixed assets. The adjusted estimated useful lives, 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 residual Annual depreciation lives values rates Buildings 10 to 50 years 0% to5% 1.90% to10.00% Power generation equipment 5 to 31 years 0% to5% 3.06% to20.00% Motor vehicles 5 to 10 years 0% to5% 9.50% to20.00% Other equipment 5 to 25 years 0% to5% 3.80% to20.00% 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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) (c) The carrying amount of a fixed asset is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note II(19)).
II Summary of significant accounting policies and accounting estimates(Cont’d)
(14) Fixed assets(Cont’d)
(d) Basis for identification of fixed assets held under finance leases and related measurement
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. The leased asset is recognised at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The difference between the recorded amount of the leased asset and the minimum lease payments is accounted for as unrecognised finance charge (Note II(26)(b)).
Fixed assets held under a finance lease is depreciated on a basis consistent with the depreciation policy adopted for fixed assets that are self-owned. When a leased asset can be reasonably determined that its ownership will be transferred at the end of the lease term, it is depreciated over the period of expected use; otherwise, the leased asset is depreciated over the shorter period of the lease term and the period of expected use.
(e) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period. (15) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation is charged starting from the following month. The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note II(19)).
(16) Borrowing cost
Borrowing costs that are directly attributable to the acquisition and construction of a fixed 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.
For general borrowings occupied for the acquisition or construction of qualifying assets, the capitalised
amount of the general borrowings is determined by the weighted average of the difference between
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) accumulated capital expenditure and capital expenditure of the special borrowings multiplies by the weighted average effective interest rate of the occupied general borrowings. The effective interest rate is the interest rate used when the future cash flows of the borrowings over the estimated remaining deposit period or a shorter applicable period are discounted into the initial recognised amount of the borrowings.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(17) Intangible assets
Intangible assets include land use rights, sea use rights, software, franchise rights, associated projects for electricity transmission and transformation, microwave engineering and transportation engineering, and are measured at cost. The intangible assets contributed by the state shareholders at the reorganisation of the Company into a corporation are recognised based on the revaluated amounts as approved by the state-owned assets administration department.
(a) Land use rights and sea use rights
Land use rights are amortised on the straight-line basis over their approved use period of 20 to 70 years. If the acquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of the acquisition costs are recognised as fixed assets. Sea use rights are amortised on the straight-line basis over their approved useful lives of 50 years.
(b) Associated projects for electricity transmission and transformation, microwave engineering and transportation engineering
Associated projects for electricity transmission and transformation and microwave engineering refer to grid connection project undertaken by the Group for transmitting electricity to Guangdong Power Grid. From the start of use, they are amortised on a straight-line basis over their estimated beneficial period of 16 years. Transportation engineering is amortised on a straight-line basis over their benefit period of 10 to 20 years. (c) Other intangible assets
Fixed assets other than land use rights, sea use rights, associated projects for electricity transmission and transformation, microwave engineering and transportation engineering are amortised on a straight-line-basis over the expected useful lives of 2 to 25 years.
(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made as appropriate.
(e) Impairment of intangible assets
The carrying amounts of intangible assets are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note II(19)).
(18) Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets held under operating leases, and other expenditures that have been incurred but should be recognised as expenses over more than one year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulated amortisation.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(19) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment properties that are measured at cost and long-term equity investments in subsidiaries, joint ventures and associates are tested for impairment if there is any indication that an asset may be impaired at the balance 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 theasset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of anasset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset group or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset group or a group of asset groups, including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the asset group or group of asset groups in proportion to the carrying amounts of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.
(20) Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in exchange for service rendered by employees or for termination of employment relationship, which include short-term employee benefits, post-employment benefits, termination benefits and other long-term employee benefits. (a) Short-term employee benefits
Short-term employee benefits include wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance and maternity insurance, housing funds, union running costs and employee education costs, short-term paid absences etc. The short-term employee benefits actually occurred are recognised as a liability in the accounting period in which the service is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. Non-monetary benefits are measured at fair value.
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, the Group's post-employment benefits mainly include basic pensions, unemployment insurance and supplementary pensions, and all of them belong to the defined contribution plans.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(20) Employee benefits (Cont'd)
(b) Post-employment benefits (Cont'd)
Basic pensions
TheGroup’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 percentages prescribed by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them.
Supplementary pensions
The Company purchases supplementary pension insurance for employees, and pays pension insurances according to the policies of Yudean.
The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.
(c) Termination benefits
Where the Group terminates the employment relationship with employees before the end of the employment contract or offers compensation for encouraging employees to accept voluntary redundancy, a provision for termination benefits for the compensation arising from termination of the employment relationship with employees is recognised, with a corresponding charge to profit or loss at the earlier of the following two times: when termination of the employment relationship or an offer for voluntary redundancy cannot be withdrawn by the Group unilaterally, and when costs relating to payment of restructuring of termination benefits are recognised.
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 normal retirement date. The Group accounts for the early retirement benefits in accordance with the treatment for termination benefits, in which the salaries and social security contributions to be paid to and for the early retired employees from the off-duty date to the normal retirement date are recognised as liabilities with a corresponding charge to the profit or loss for the current period. The differences arising from the changes in the respective actuarial assumptions of the early retirement benefits and the adjustments of benefit standards are recognised in profit or loss in the period in which they occur. The termination benefits expected to be settled within one year since the balance sheet date are classified as current liabilities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(21) Dividends distribution
Cash dividends are recognised as liabilities in the period in which the dividends are approved by theshareholders’ meeting.
(22) Provisions
Provisions for product warranties, onerous contracts etc. are recognised when the Group has a present obligation, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors surrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provisions expected to be settled within one year since the balance sheet date are classified as current liabilities.
(23) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the sales of goods and services in the ordinary course of theGroup’s activities. Revenue is shown net of discounts and returns.
Revenue is recognised whenit’s probable that the economic benefits associated with the transaction will flow to the Group, the related revenue can be reliably measured, and the specific criteria of revenue recognition have been met for each type of theGroup’s activities as described below:
(a) Revenue from sales of electricity and heat energy
Revenue is recognised when electricity and heat energy are supplied to grid companies or customers.
(b) Revenue from sales of by-products
Revenue from the sales of goods is recognised when the Group transfers by-products (such as coal ash) produced by electricity generations to the designated delivery place pursuant to the contract or agreement and the recipient resource utilisation confirms receipt.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(23) Revenue recognition (Cont'd)
(c) Rendering of services
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the rendering of services.
The Group provides external bidding agency service and maintenance service.
The Group provides external bidding agency service, upon the completion of the bidding service, revenue is recognised based on the pricing difference between the electricity consumption of bidding and auction price, and thecustomer’s conventional price of electricity.
The Group provides external maintenance service, and revenue is recognised according to the percentage completion method, determined by percentage of the total cost incurred.
(d) Revenue from sales of certified emission reductions (CERs)
The Group sells CERs provided by its natural gas facilities and wind power facilities. These facilities are registered with the Clean Development Mechanism (CDM) Executive Board (EB) of the United Nations as CDM projects under the Kyoto Protocol. The Company also sells voluntary emission reductions (“VERs”) attributable to the electricity generated from CDM projects before getting registered with CDMEB.
Revenue related to CERs and VERs is recognised when the following conditions are met:
- The counterparty has committed to buying CERs or VERs;
- The amount of income from selling CERs or VERs can be reliably measured;
- The Company has generated the related electricity.
(e) Transfer of asset use rights
Interest income is recognised on a time proportion basis with reference to the deposits or the principal outstanding and the applicable effective interest rate.
Rental income for operation lease is recognised by straight-line method of allocation over the rental period. (24) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from the government, including tax return, financial subsidy 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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(24) Government grants (Cont'd)
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. A government grant related to revenue is a grant other than those related to assets.
Government grants related to assets are either deducted against the carrying amount of the assets, or recorded as deferred income and recognised in profit or loss on a systemic basis over the useful lives of the assets. Government grants related to income that compensate the future costs, expenses or losses are recorded as deferred income and recognised in profit or loss, or deducted against related costs, expenses or losses in reporting the related expenses; government grants related to income that compensate the incurred costs, expenses or losses are recognised in profit or loss, or deducted against related costs, expenses or losses directly in the current period. 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.
(25) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries, associates and joint ventures will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised, the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities are offset when:
 the deferred taxes assets and liabilities are related to the same tax payer within the Group and the same taxation authority; and,
 that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(26) Leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. All other leases are operating leases.
(a) Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as part of the cost of related assets, or charged as an expense for the current period.
Rental income from an operating lease is recognised on a straight-line basis over the period of the lease. (b) Finance leases
The leased asset is recognised at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The difference between the recorded amount of the leased asset and the minimum lease payments is accounted for as unrecognised finance charge and is amortised using the effective interest method over the period of the lease. A long-term payable is recorded at the amount equal to the minimum lease payments less the unrecognised finance charge.
(27) Assets held for sale and discontinued operations
Non-current assets or disposal group under the following two circumstances should be reclassified as assets held for sale: (1) the asset or disposal group is available for sale according to the common practice of similar trades; (2) the group is legally bounded by agreement and obtain the permission to sell the asset or disposal group to other parties, which is expected to commence within one year.
The carrying amount of the non-current asset(exclusive of financial assets, investment property fair value measured at fair value and deferred tax assets) is the lower of the original carrying amount less costs to sell and the fair value less costs to sell. The asset impairment loss should be made when the fair value less costs to sell are lower than the original carrying amount.
Asset or disposal group that is reclassified as being held for sale should be respectively disclosed as current assets or current liability in the balance sheet.
Discontinued operations whose components can be identified separately and are reclassified as being disposed or held for the purpose of sale should be reclassified as being held for sale under one of the following circumstances: (1) the components represent a separate major operation or a separate major operating district; (2) the components are a part of the plan of disposing a separate major operation or a separate major operating district; (3) the components are set up for resale as subsidiaries.
The net profits of discontinued operations consists of gains or losses of operation and disposal.
(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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(28) Segmentinformation(Cont’d)
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by theGroup’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which the information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.
(29) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below:
(a) Estimates on impairment of other long-term assets
As described in Note II(19), fixed assets, construction in progress, intangible assets with finite useful lives, investment properties that are measured at cost and long-term equity investments in subsidiaries, joint ventures and associates are tested for impairment ifthere’s indications that the assets may be impaired the balance sheet date.
When assessing whetherthere’s indication that the above assets are impaired, management mainly evaluate and analyse: (1) whether events affecting asset impairment occurred; (2) whether the present value of expected cash flows arising from the continuing use or disposal of the asset is lower than its carrying amount; (3) whether the assumptions used in estimating the present value of future cash flows is appropriate.
Relevant assumptions adopted by the Group to determine impairment, e.g. changes in assumptions on discount rate and growth rate used to calculate the present value of future cash flows may have material impact on the present value used in the impairment test, and cause impairment in the above-mentioned long-term assets of the Group.
(b) Useful lives of fixed assets and ration of residual value
The estimated useful lives and ration of residual value of fixed assets are determined by management after taking into account their durability and past maintenance records based on the industry practice. The estimated useful life of the assets is reviewed at each year-end with appropriate adjustments made accordingly.
On 1 June 2017, the Group has adjusted the useful life and ratio of residual value of some of the fixed assets (Note II(31)).
Any changes in the estimated useful life and ration of residual value of fixed assets may have significant impact on theGroup’s net profits.
(c) Enterprise income tax
The recognition of the deferred tax assets arising from deductible temporary differences and deductible
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) losses largely depends on management's judgements on whether it can obtain enough future taxable income for deducting deductible temporary differences and deductible losses in future period, whereas the calculation of the future taxable income needs to apply related judgements and estimations, together with the impact on overall economic environment, and different judgements and estimations will impact on the recognition and amounts of deferred tax assets.
II Summary of significant accounting policies and accounting estimates(Cont’d)
(29) Critical accounting estimates and judgements(Cont’d)
(d) Deferred tax assets
Whether or not deferred tax assets generated from the deductible losses and the deductible temporary difference depends on themanagement’s judgement on whether there will be sufficient future taxable profits available against the deductible losses and the deductible temporary difference. The calculation of the amount of taxable income relies on judgement and estimates of the future and need to take into consideration the strategy on tax planning and overall economic environment. Difference in judgement and estimates will lead to the difference in whether or not the deferred tax assets should be recognize and the amount of the recognized deferred tax assets.
When assessing whether there will be sufficient future taxable profits available against which the deductible temporary differences can be utilised, the Group recognises deferred tax assets to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be utilised, using tax rates that would apply in the period when the asset would be utilised. In determining the amount of deferred tax assets, the Group exercises judgements about the estimated timing and amount of taxable profits of the following periods, and of the tax rates applicable in the future according to the existing tax policies and other relevant regulations. Differences between such estimates and the actual timing and amount of future taxable profits will affect the amount of deferred tax assets.
(30) Significant changes in accounting policies
In 2017, the Ministry of Finance released the Accounting Standard for Business Enterprises No. 42 - Non-current Assets or Disposal Groups Held for Sale and Discontinued Operations, the revised Accounting Standard for Business Enterprises No. 16 - Government Grants and the Circular on Amendment to Formats of Financial Statements of General Industry (Cai Kuai[2017] No. 30). The financial statements are prepared in accordance with the above standards and circular, and impacts are as follows:
The nature and the reasons of the changes in The line items affected The amounts accounting policies affected 2016 The government grants related to income Not applicable Not applicable incurred in 2017 are directly written down to
related expenses or losses. The comparatives
as at 31 December 2016 were not restated.
2016 Gains on disposal of assets (3,723,321) The Group recorded the gains or losses on
disposals of fixed assets and intangible assets Non-operating income (17,252) incurred in 2017, in gains on disposals of assets.
Non-operating expenses 3,740,573 The comparatives as at 31 December 2016
were restated accordingly.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) II Summary of significant accounting policies and accounting estimates(Cont’d)
(31) Significant changes in accounting estimates
According to the assessment of theGroup’s management, the capability of the generator sets and equipment will be significantly enhanced and the useful life of relevant fixed assets can be extended since the Group conduct technical reinforcement and apply technical innovation. However, due to changes in economic environment and technical improvement, the useful lives of some fixed assets have been severely curtailed. On 31 May 2017, the eighth session Board of Directors of the Group held the first communication meeting in 2017, and approved the Proposal on Adjusting Depreciation Period and Residual Values for Some Fixed Assets. Pursuant to the proposal, the Group plans to adjust estimated useful lives and ratio of residual value of fixed assets from 1 June 2017.
The changes of estimated useful life and ratio of residual value are as follows:
Estimated useful Estimated Estimated useful Estimated
lives before ratio of lives after ratio of
adjustments residual value adjustments residual
value Explanation Buildings 10 to 50 years 0%-10% 10 to 50 years 0%-5% (a) Power
generation
equipment 6 to 31 years 0%-10% 5 to 31 years 0%-5% (b) Motor vehicles 5 to 10 years 0%-10% 5 to 10 years 0%-5% Unchanged Other
equipment 5 to 25 years 0%-10% 5 to 25 years 0%-5% (c) (a) The estimated useful lives of non-production premises and buildings are adjusted to 40 years from 22 years or 35 years.
(b) The estimated useful lives of certain wind-generator sets, hydraulic-generator sets, generation and heating equipment and power transformer equipment are adjusted to 8 years or 20 years from 13 years, 16 years or 18 years; the estimated useful lives of De-NOx equipment are adjusted to 5 years or 10 years from 13 years; the estimated useful lives of some coal transportation equipment, terminal transportation equipment are adjusted to 15 years from 8 years or 13 years.
(c) The estimated useful lives of other equipment including crane, lifting machine and truck scales are adjusted to 10 years from 8 years.
TheGroup’s subsidiaries Zhanjiang Wind Power, Shibeishan adjusted the residual value to5% from10% for fixed assets since 1 June 2017.
According to regulations of the Accounting Standards for Business Enterprises, the changes in accounting estimates adopt prospective application method. The changes in accounting estimates will result in a decrease of RMB 377 million in depreciation of fixed assets for the period from 1 June 2017 to 31 December 2017, and an increase of RMB 212 million in net profit attributable to the Company for the year ended 31 December 2017.
Except for the above changes in accounting estimates, the Group adopts the judgements and assumptions that are in substance consistent with the judgements and assumptions applied in 2016 to make estimates.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) III Taxation
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category Tax base Tax rate
Value-added tax (“VAT”) Taxable value added amount (Tax payable is 3%,6%,11% and17% calculated using the taxable sales amount
multiplied by the applicable tax rate less
deductible VAT input of the current period)
City maintenance and The payment amount of VAT, business tax and 5% to7%
construction tax consumption tax
Educational surcharge Amount of business tax and VAT paid 3%
Local educational surcharge Amount of business tax and VAT paid 2%
Enterprise income tax (a) Taxable income 12.5% and25%
House property tax The rental income or residual value of the 12% and1.2%
property
(a) Except for the subsidiaries Guangdong Yudean Xuwen Wind Power Electricity Co., Ltd. (“Xuwen Wind Power”), Guangdong Yudean Dianbai Wind Power (“Dianbai Wind Power”), Guangdong Yudean Qujie Wind Power Co., Ltd. (“Qujie Wind Power”) and Guangdong Yudean Leizhou Wind Power Co., Ltd. (“Leizhou Wind Power”) (see Note III(2)), the applicable tax rate for the Company and its subsidiaries is25%.
(2) Preferential tax treatments
Pursuant to the approval documents (Caishui[2008] No. 46 and Guo Shui Fa[2009] No. 80), Xuwen Wind Power, Dianbai Wind Power, Qujie Wind Power and Leizhou Wind Power are exempted from enterprise income tax in the first three years counting from the year profits are recorded, and can enjoy half rate reduction in the following three years. As the local taxation bureau considered that Xuwen Wind Power posted profits for the first time in 2012, and Dianbai Wind Power posted profits for the first time in 2016, Qujie Wind Power posted profits for the first time in 2016 and Leizhou Wind Power posted profits for the first time in 2017, the applicable enterprise income tax rates for Xuwen Wind, Dianbai Wind Power, Qujie Wind Power and Leizhou Wind Power are12.5%,0%,0% and0% in 2017 (2016:12.5%,0%,0% and not available) respectively.
In addition,50% of VAT levied on the sales of electricity generated by Guangdong Yudean Shibeishan Wind Power Co., Ltd. (“Shibeishan”), Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. (“Zhanjiang Wind Power”), Xuwen Wind Power, Dianbai Wind Power, Qujie Wind Power and Leizhou Wind Power and Huilai Wind Power will be refunded immediately in accordance with the Notice Concerning Value Added Tax Policies on Wind Power Generation (Cai Shui[2015] No.74).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements
(1) Cash at bank and on hand
31 December 2017 31 December 2016 Cash on hand 37,745 49,457 Cash at bank 844,241,939 385,820,099 Deposits with Yudean Finance (b) 4,152,300,806 4,799,004,094 4,996,580,490 5,184,873,650 (a)
As at 31 December 2017, the Group had no offshore deposit (31 December 2016: Nil).
(b) Deposits with Yudean Finance refers to the deposits placed with Guangdong Yudean Finance Co., Ltd. (“Yudean Finance”). Yudean Finance is a financial institution established with the approval of thePeople’s Bank of China. Yudean is the parent company of Yudean Finance.
(2) Accounts receivable
31 December 2017 31 December 2016 Accounts receivable 2,826,237,259 2,776,061,909 Less: Provision for bad debts - - 2,826,237,259 2,776,061,909 (a) The ageing of accounts receivable is analysed as follows:
31 December 2017 31 December 2016 Within 1 year (inclusive) 2,815,185,386 2,774,635,805 1 to 2 years (inclusive) 11,051,873 1,426,104 2,826,237,259 2,776,061,909 As at 31 December 2017 and 31 December 2016, based on the analysis of thecustomers’ financial status and credit record, the Group expected that the accounts receivable with ageing of 1 to 2 years can be fully recovered with no impairment, thus no provisions for bad debts are individually provided. As other accounts receivable aged within one year are mainly receivables from sales of electricity which have been recovered in a subsequent period,there’s no risk of impairment.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(2) Accounts receivable(Cont’d)
(b) Accounts receivable are analysed by categories as follows:
As at 31 December 2017 31 December 2016
Provision for bad Provision for bad Ending balance debts Ending balance debts% of total Provision % of total Provision Amount balance Amount % Amount balance Amount % With amounts that are
individually significant
and that the related
provision for bad debts is
provided on the individual
basis 2,781,066,90398.40% - - 2,728,506,32098.29% - - With amounts that are not
individually significant but
that the related provision
for bad debts is provided
on the individual basis 45,170,356 1.60% - - 47,555,589 1.71% - - 2,826,237,259100.00% - - 2,776,061,909100.00% - - (c) As at 31 December 2017, the five largest accounts receivable according to debtors were analysed as follows: Provision for bad % of total Entity name Amount debts balance Total amount of accounts receivable to five
largest debtors 2,781,066,903 - 98.40% (d) There was no accrual, recovery, or reversal of provision for bad debts, and no write-off for accounts receivable in the current year (2016: Nil)
(e) As at 31 December 2017, the Group had accounts receivable with carrying amount of RMB 402,847,793 (31 December 2016: RMB 316,986,314) and the on-grid power tariff collection right were pledged to banks to obtain long-term borrowings of RMB 2,698,978,707, including RMB 209,579,575 due within one year (31 December 2016: RMB 2,537,296,396, including RMB 184,196,290 due within one year) (see Note IV 31(a), 33(a)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(3) Advances to suppliers
(a) The ageing of advances to suppliers is analysed below:
31 December 2017 31 December 2016
Amount % of total balance Amount % of total balance Within 1 year 825,247,024 99.81% 1,062,290,930 99.76% 1 to 2 years 963,292 0.12% 1,680,510 0.16% 2 to 3 years 8,640 0.00% 68,229 0.01% Over 3 year 567,323 0.07% 782,453 0.07% 826,786,279 100.00% 1,064,822,122 100.00% As at 31 December 2017, advances to suppliers aged more than 1 year were RMB 1,539,255 (31 December 2016: RMB 2,531,192), mainly including prepayments for spare parts and materials.
(b) As at 31 December 2017, the five largest advances to debtors were summarised as follows:
Amount % of total balance Total amount of advances to five largest debtors 675,474,337 81.70% (4) Interest receivable
31 December 2017 31 December 2016 Time deposit 14,923,771 16,681,118 (5) Other receivables
31 December 2017 31 December 2016 Receivables from sales of by-products 140,445,384 66,823,439 Refund of land-transferring fee receivable 23,446,000 - Petty cash 6,996,288 24,005,804 Government grants receivable 6,474,557 4,226,820 Project expenses paid on behalf 6,236,199 20,197,811 Others 32,156,092 24,669,780 215,754,520 139,923,654 Less: Provision for bad debts (6,846,527) (6,423,698) 208,907,993 133,499,956
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(5) Other receivables(Cont’d)
(a) The ageing of other receivables is analysed as follows:
31 December 2017 31 December 2016 Within 1 year 198,718,207 106,699,057 1 to 2 years 7,803,912 5,268,247 2 to 3 years 841,160 1,121,768 Over 3 year 8,391,241 26,834,582 215,754,520 139,923,654 Ageing starts from the date that the other receivables are recognised.
As at 31 December 2017, other receivables of RMB 8,300,017 (31 December 2016: RMB 25,898,935) were past due. However, based on the analysis of financial status and credit record of debtors, the Group expected that the overdue amounts could be recovered with no existence of impairment, thus no provisions for bad debts were individually provided. The ageing of overdue other receivables is analysed as follows:
31 December 2017 31 December 2016 1 to 2 years 5,912,738 5,476,603 2 to 3 years 696,885 473,906 Over 3 years 1,690,394 19,948,426 8,300,017 25,898,935 (b) Other receivables are analysed by categories as follows:
31 December 2017 31 December 2016
Ending balance Provision for bad debts Ending balance Provision for bad debts% of total
Provision
% of total
Provision Amount balance Amount % Amount balance Amount % With amounts
that are
individually
significant
and that the
related
provision for
bad debts is
provided on
the individual
basis 171,216,80079.36% - - 85,142,409 60.85% - - With amounts
that are not
individually
significant but
that the
related
provision for
44,537,72020.64% (6,846,527) 15.37% 54,781,245 39.15% (6,423,698) 11.73%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) bad debts is
provided on
the individual
basis
215,754,520100.00% (6,846,527) 3.17% 139,923,654 100.00% (6,423,698) 4.59%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(5) Other receivables(Cont’d)
(c) Increase, recovery or reversal, and write-off for provision of bad debts in the current year
31 December 2017 31 December 2016 Opening balance (6,423,698) (6,365,291) Increase in the current year (422,829) (58,407) Recovery or reversal in the current year - - Ending balance (6,846,527) (6,423,698) (d) As at 31 December 2017, the top five balances of other receivables categorised by debtors were summarised as follows:
% of total Provision for Nature Balance Ageing balance bad debts Guangdong Yudean
Environmental Protection Co.,Receivables from sales
Ltd.(“Yudean Environmental”) of by-products 136,540,065 Within 1 year 63.28% - Maoming Port Bohe New Port
Construction Headquarters
Office Advances for land 23,446,000 Within 1 year 10.87% - Huilai Country Office, State Receivables from VAT
Administration of Taxation return 5,740,735 Within 2 years 2.66% - Receivables from
Maoming Jiarun Investment Co., borrowed labour
Ltd. management fee 5,490,000 Within 1 year 2.54% - Huizhou Zhonghai Shipping Receivables from
Agency Co., Ltd. towboat service fee 3,071,530 Within 1 year 1.43% - 174,288,330 80.78% - (e) As at 31 December 2017, the analysis of theGroup’s receivables of government grants was as follows:
Estimated time, amount and Government grants Balance Ageing basis of collection Huilai Country Office, State Expected to be fully Administration of Taxation Immediate refund of VAT 5,740,735 Within 2 years recovered by June 2018 Xuwen Country Office, State Expected to be fully Administration of Taxation Immediate refund of VAT 727,783 Within 1 year recovered by June 2018 Zhanjiang Municipal Office, State Expected to be fully Administration of Taxation Immediate refund of VAT 6,039 Within 1 year recovered by June 2018 6,474,557
(6) Inventories
(a) Inventories are summarised by categories as follows:
31 December 2017 31 December 2016
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Provision for decline Provision for decline
Ending
in the value of
Carrying Ending
in the value of Carrying balance inventories amount balance inventories amount Fuel 807,187,691 - 807,187,691 806,132,327 - 806,132,327 Spare parts 714,566,924 (17,420,859) 697,146,065 739,267,517 (59,602,850) 679,664,667 Others 23,301,017 - 23,301,017 27,356,247 - 27,356,247 1,545,055,632 (17,420,859) 1,527,634,773 1,572,756,091 (59,602,850) 1,513,153,241
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(6) Inventories (Cont'd)
(b) Provision for decline in the value of inventories is analysed as below:
Decrease in the current year
31 December 31 December 2016 Reversal or write-off Others 2017 Spare parts (59,602,850) 42,181,991 - (17,420,859) As at 31 December 2017, the Group made provision for decline in the value of inventories because some spare parts were rendered useless and impaired as a result of technology upgrade.
(c) Provision for decline in the value of inventories is as follows:
Specific basis for determination of Reason for reversal or write-off of provision for net realisable value decline in the value of inventories in the current year Spare parts Market price Disposal and scrap of spare parts (7) Other current assets
31 December 2017 31 December 2016 VAT to be deducted 1,106,133,996 868,022,220 Income tax prepaid 31,389,365 12,496,080 Others 59,108 1,537,291 1,137,582,469 882,055,591 (8) Available-for-sale financial assets
31 December 2017 31 December 2016 Measured at fair value
- Available-for-sale equity instruments 408,992,985 419,736,308 Measured at cost
- Available-for-sale equity instruments 859,651,686 859,651,686 1,268,644,671 1,279,387,994 Less: Provision for impairment (25,010,686) - 1,243,633,985 1,279,387,994
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(8) Available-for-sale financial assets(Cont’d)
(a) Related information of available-for-sale financial assets is analysed as follows:
Available-for-sale financial assets measured at fair value:
31 December 2017 31 December 2016 Available-for-sale equity instruments
- Fair value 408,992,985 419,736,308 - Cost 255,328,616 255,328,616 - Accumulated amount included in other
comprehensive income 153,664,369 164,407,692 - Accumulated provision for impairment - - (i) As at 31 December 2017, the Company held 12,600,000 tradable A shares in Shenzhen Energy with fair value of RMB 76,356,000, and the investment cost was RMB 15,890,628. The investment was stated at fair value with reference to the market price. During the year, losses at fair value amounted to RMB 10,206,000 (2016: RMB 37,170,000), and other comprehensive income was adjusted downwards accordingly.
(ii) As at 31 December 2017, the Company held 55,532,250 tradable A shares in Shenergy with fair value of RMB 325,418,985, and the investment cost was RMB 235,837,988. The investment was stated at fair value with reference to the market price. During the year, losses at fair value amounted to RMB 555,323 (2016: losses of RMB 93,294,180), and other comprehensive income was adjusted downwards accordingly.
(iii) As at 31 December 2017, the Company held 1,800,000 shares of GMG International Tendering Co., Ltd. traded at the National Equities Exchange and Quotations system with fair value of RMB 7,218,000, and the investment cost was RMB 3,600,000. The investment was stated at fair value with reference to the market price. During the year, gains at fair value amounted to RMB 18,000 (2016: losses of RMB 3,150,000), and other comprehensive income was adjusted upwards accordingly.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(8) Available-for-sale financial assets(Cont’d)
(b) Available-for-sale financial assets measured at cost:
Increase in Shareholding Cash dividends 31 December the current 31 December ratio in invested in the current 2016 year 2017 entities(%) year Available-for-sale equity
instruments - cost
- Shenzhen Capital Group Co.,
Ltd. 115,000,000 - 115,000,000 3.67% 16,978,349 - Sunshine Insurance Group
Corporation 356,000,000 - 356,000,000 3.38% 21,000,000 - South Sea Wind Electricity
Development Co., Ltd. 70,000,000 - 70,000,000 10.00% - - Weixin Yuntou Yudean Zhaxi
Energy Co., Ltd. (“Weixin
Yuntou”) 318,651,686 - 318,651,686 19.55% - 859,651,686 - 859,651,686 37,978,349 Available-for-sale equity
instruments - provision
for impairment
- Weixin Yuntou(i) - (25,010,686) (25,010,686)
859,651,686 (25,010,686) 834,641,000
The available-for-sale financial assets measured at cost mainly include the unlisted equity investments held by the Company which are not quoted in an active market and whose fair value cannot be reliably measured as the variability in the range of reasonable fair value measurements is significant and the probabilities of the various estimates used to determine the fair value cannot be reasonably determined.
(i) As Weixin Yuntou started continuous operating loss, theCompany’s management raised provision for impairment of RMB 25,010,686 on the basis of the difference between the book value of the available-for-sale financial assets and the present value of future cash flow determined by market profitability of similar financial assets at that time.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(9) Long-term receivables
31 December 2017 31 December 2016
Book Provision for Carrying Book Provision for Carrying Range of Items balance bad debts amount balance bad debts amount discount rate Sales and
leaseback
deposits 84,358,065 - 84,358,065 136,075,412 - 136,075,4125.31% to7.05% As at 31 December 2017, theGroup’s long-term receivables mainly represented the present value of RMB 160,000,000 of deposits paid for fixed assets held under sales and leaseback (31 December 2016: RMB 160,000,000).
(10) Long-term equity investments
31 December 2017 31 December 2016 Joint ventures (a) 605,678,402 584,241,360 Associates (b) 5,195,328,010 4,848,396,390 5,801,006,412 5,432,637,750 Less: Provision for impairment of long-term equity
investments - - 5,801,006,412 5,432,637,750
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(10) Long-term equity investments(Cont’d)
(a) Joint ventures
Movements for the current year
Provision for Net gains or Adjustments to other
Other
Cash dividends
Provision
impairment at 31 December Increase in Decrease in losses under comprehensive changes in or profits for 31 December the end of the 2016 investment investment equity method income equity declared impairment Others 2017 year Guangdong Electric
Power Industry Fuel
Co., Ltd. (“Industry
Fuel”) 584,241,360 - - 80,668,157 - - (59,231,115) - - 605,678,402 - The equity-related information of the joint ventures is set out in Note VI(2).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(10) Long-term equity investments(Cont’d)
(b) Associates
Movements for the current year
Adjustment to Cash Provision for Net gains or
other dividends or Provision for Transferred impairment 31 December Increase in Decrease in
losses under
comprehensive Changes in profits impairment out in current 31 December at the end of 2016 investment investment equity method income other equity declared loss year 2017 the year Shanxi Yudean Energy Co.,
Ltd.(“Shanxi Yudean
Energy”) 998,393,392 - - 226,047,854 - - (8,000,000) - - 1,216,441,246 - Yudean Finance 667,666,853 - - 75,329,385 - - (42,295,033) - - 700,701,205 - Guangdong Guohua Yudean
Electric Co., Ltd.
(“Taishan Electric”) 1,970,490,827 - - 86,266,136 - - (95,281,354) - - 1,961,475,609 - Guangdong Yudean
Shipping Co., Ltd.
(“Yudean Shipping”) 935,332,553 - - 8,613,940 - - (2,188,557) - - 941,757,936 - Guangdong Yudean
Western Investment Co.,
Ltd. (“Western
Investment”) 200,011,582 - - (46,314,869) - - - - - 153,696,713 - Huaneng Shantou Wind
Power Co., Ltd.
(“Huaneng Shantou Wind
Power”) 61,986,226 - - 6,174,448 - - (5,410,000) - - 62,750,674 - Yangshan Jiangkeng
Hydropower Co., Ltd.
(“Yangshan Jiangkeng”) 5,991,055 - - 616,304 - - (933,933) - - 5,673,426 - Yangshan Zhongxinkeng
Electric Co., Ltd.
(“Yangshan
Zhongxinkeng”) 8,523,902 - - 684,457 - - (1,698,988) - - 7,509,371 - Guangdong Yudean
Property Self-Insurance
Co., Ltd. (“Yudean
Property - 147,000,000 - (1,678,170) - - - - - 145,321,830 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Self-Insurance”)(i)
4,848,396,390 147,000,000 - 355,739,485 - - (155,807,865) - - 5,195,328,010 - (i) The company set up Guangdong Yudean Property Self-Insurance Co., Ltd. with Yudean Group on April, 2017. The Company invested RMB 147,000,000, accounting for49% of total investment.
The equity-related information of the associates is set out in Note VI(2).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(11) Investment properties
Buildings Cost
- Opening balance and ending balance 20,135,165 Accumulated depreciation
- Opening balance (11,202,928) - Increase in the current year (635,598) - Ending balance (11,838,526) Carrying amount
- Ending balance 8,296,639 - Opening balance 8,932,237 (12) Fixed assets
Power generation
Motor
Other
Buildings equipment vehicles equipment Total Cost
31 December 2016 17,122,935,233 54,742,668,249 612,243,075 1,160,457,302 73,638,303,859 Increase in the current year
Purchase 175,605,750 110,861,016 11,573,858 39,700,981 337,741,605 Transfers from construction
in progress (c) 965,559,989 1,359,820,394 2,274,584 79,422,416 2,407,077,383 Adjustment for project
settlement differences 523,242 (16,148,881) (33,390) (2,600) (15,661,629) Disposals and scrap in the
current year (17,748,375) (1,117,005,696) (16,733,826) (6,945,841) (1,158,433,738) Reclassification to other
current assets - - - (255,338) (255,338) 31 December 2017 18,246,875,839 55,080,195,082 609,324,301 1,272,376,920 75,208,772,142 Accumulated depreciation
31 December 2016 (5,644,005,857) (23,660,669,651) (425,757,766) (776,998,641) (30,507,431,915) Increase in the current year
Provision (b) (491,308,432) (2,907,517,345) (39,974,785) (60,378,566) (3,499,179,128) Decrease in the current year
Disposal and scrap 4,940,689 655,172,318 14,271,979 6,068,967 680,453,953 Reclassification to other
current assets - - - 196,230 196,230 31 December 2017 (6,130,373,600) (25,913,014,678) (451,460,572) (831,112,010) (33,325,960,860) Provision for impairment loss
31 December 2016 (129,030,264) (1,180,825,371) (2,322,621) (4,008,167) (1,316,186,423) Increases in the current year
Provision (d) - (29,483,080) - - (29,483,080)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Decrease in the current year
Disposal and scrap 11,709,278 446,253,305 1,089,403 12,551 459,064,537 31 December 2017 (117,320,986) (764,055,146) (1,233,218) (3,995,616) (886,604,966) Carrying amount
31 December 2017 11,999,181,253 28,403,125,258 156,630,511 437,269,294 40,996,206,316 31 December 2016 11,349,899,112 29,901,173,227 184,162,688 379,450,494 41,814,685,521
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(12) Fixed assets(Cont’d)
(a) As at 31 December 2017, power generation equipment with the carrying amount of RMB 757,878,678 (the cost of RMB 2,562,570,238) (31 December 2016: the carrying amount of RMB 816,058,138 and the cost of RMB 2,562,570,238) were pledged as collateral for long-term borrowings of RMB 85,000,000 (31 December 2016: RMB 226,400,000) (Note IV(33)(b)).
As at 31 December 2017, no buildings were pledged as collateral for long-term borrowings (31 December 2016: Nil).
(b) In 2017, theGroup’s depreciation amount charged for fixed assets was RMB 3,499,179,128 (2016: RMB 3,939,547,160), among which RMB 3,446,599,794 , RMB 4,185, RMB 46,987,909 and RMB 5,587,240 (2016: RMB 3,893,532,712, RMB 4,185, RMB 42,638,087, RMB 3,372,176) were charged to cost of sales, selling and distribution expenses, general and administrative expenses and construction in progress respectively.
(c) The costs of fixed assets transferred from construction in progress amounted to RMB 2,407,077,383 (2016: RMB 2,367,688,811)(Note IV(13)(a)).
(d) Impairment of fixed assets
In 2017, movements of provision for impairment of fixed assets were as follows:
31 December Increase in the Decrease in the 31 December 2016 current year current year 2017 Guangdong Yuejia Electric Co.,
Ltd. (“Yuejia Electric”) (i) 481,538,999 - (1,089,403) 480,449,596 Zhongyue Energy (iii) 214,553,161 12,990,034 (214,880,231) 12,662,964 Guangdong Red Bay Power
Generation Co., Ltd. (“Red Bay
Power”) (iii) 184,988,419 - (91,162,974) 93,825,445 Xuwen Wind Power (ii) 126,877,473 - - 126,877,473 Zhanjiang Electric Co., Ltd.
(“Zhanjiang Electric”) (iii) 89,280,832 15,153,177 (75,141,663) 29,292,346 Guangdong Yudean Jinghai Power
Co., Ltd. (“Jinghai Power”) (iii) 71,082,445 - (47,388,149) 23,694,296 Guangdong Shaoguan Yuejiang
Electric Power Co., Ltd.
(“Yuejiang Power”) (iii) 52,870,382 1,339,869 (118,387) 54,091,864 Maoming Zhenneng Thermal
Power Co., Ltd. (“Maoming
Zhenneng”) (iii) 49,057,453 - (19,305,769) 29,751,684 Shajiao A Power plant (iii) 45,937,259 - (9,977,961) 35,959,298 1,316,186,423 29,483,080 (459,064,537) 886,604,966
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(12) Fixed assets(Cont’d)
(d) Impairment of fixed assets (Cont'd)
(i) Impairment of fixed assets related to generator units of Yuejia Electric
The four generator units of Yuejia Electric have been shut down by August 2016. As at 31 December 2016, the Group made provisions of RMB 481,538,999 for impairment of asset groups related to generator units of Yuejia Electric. In 2017, management continued to dispose part of the production equipment and transferred out RMB 1,089,403 of provision for impairment of fixed assets. As at 31 December 2017, the balance of provision for impairment of fixed assets related to generator units of Yuejia Electric was RMB 480,449,596.
(ii) Impairment of generator units of Xuwen Wind Power
In July 2014, super typhoon Rammasun slammed the Yongshi Wind Power Plant owned by Xuwen Wind Power. Eighteen generator units were destroyed (Cost of the generator units was RMB 138,358,965, with accumulated depreciation of RMB 11,481,492). As the units were completely destroyed, management recorded provision of RMB 126,877,473 for impairment of these units against their full carrying amounts. As at 31 December 2017, the fixed assets were yet to be disposed.
(iii) Impairment of ultra-low emissions, energy-saving, and catalyst of denitrification projects
According to Ultra-low Emissions and Energy-saving Transformation Work Program in Full Operation (Huan Fa[2015] No. 164) jointly issued by Ministry of Environmental Protection, National Development and Reform Commission and Bureau of Energy, it required fully operating ultra-low emissions and energy-saving transformation and reducing coal consumption and pollutant discharge. For this purpose, the Group made specific plans to propel the implementation of ultra-low emissions and energy-saving program, so that the reconstruction project of its coal-fired units could be accomplished on schedule and run steadily. Based on the specific circumstance of implementation of theGroup’s coal-fired units on the program, certain part of equipment units are required to be dismantled or scrapped in advance. The Group recorded corresponding provision for impairment according to the expected recoverable amounts of catalyst of denitrification. As at 31 December 2016, the amount of provisions for the impairment were RMB 707,769,951. In 2017, the Group recorded an additional provision of RMB 29,483,080 for impairment on the basis of implementation of reconstruction projects. Besides, the provision for impairment of the fixed assets amounting to RMB 457,975,134 were reversed due to dismantlement and disposal of related assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(12) Fixed assets(Cont’d)
(e) Fixed assets held under finance leases
Accumulated
Cost depreciation Carrying amount 31 December 2017
Power generator equipment 3,621,850,800 (1,634,876,213) 1,986,974,587 31 December 2016
Power generator equipment 3,621,850,800 (1,242,103,758) 2,379,747,042 Details of the future lease payments of fixed assets held under finance leases are disclosed in Note IV(35). (f) Fixed assets with pending certificates of ownership:
Carrying amount Reason for pending certificate of ownership Plants and buildings 329,442,220 Awaiting government approval As at 31 December 2017, after consulting theGroup’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.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(13) Construction in progress
31 December 2017 31 December 2016
Ending Provision for Carrying Provision for Carrying balance impairment loss amount Ending balance impairment loss amount Bohe Coal
integration
project 5,301,125,305 - 5,301,125,305 3,540,338,713 - 3,540,338,713 Huizhou Natural
Gas thermal
and power
cogeneration
expansion
project 1,368,242,612 - 1,368,242,612 267,728,615 - 267,728,615 Zhongyue 1, 2#
generator units
alteration
project 317,584,933 - 317,584,933 - - - Xuwen Qujie
wind power
project 312,791,806 - 312,791,806 157,109,585 - 157,109,585 Xuwen Shiban
Ling wind
power project 224,363,966 - 224,363,966 227,143,871 - 227,143,871 Humen Electric
2*1000MW
project 137,373,040 (137,373,040) - 137,373,040 (49,461,265) 87,911,775 Jinghai 1-4#
generators
ultra-low
emission
reduction
alteration
project 41,786,331 - 41,786,331 40,323,340 - 40,323,340 Zhanjiang
Electric1-4#
generators
ultra-low
emission
reduction
alteration
project 43,214,650 - 43,214,650 13,813,751 - 13,813,751 Lincang Dayakou
Hydropower
Station 29,048,654 - 29,048,654 1,051,344,320 - 1,051,344,320 Red BayNo.5&6
generator units 26,446,446 - 26,446,446 26,360,597 - 26,360,597 Other
infrastructure
construction
projects 462,343,094 (14,906,223) 447,436,871 320,277,569 (11,980,219) 308,297,350 Technology
improvement
and other
projects 356,532,229 (886,463) 355,645,766 371,119,846 (886,463) 370,233,383 Leizhou
Hongxinlou
wind power
project - - - 252,688,463 - 252,688,463 8,620,853,066 (153,165,726) 8,467,687,340 6,405,621,710 (62,327,947) 6,343,293,763
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(13) Construction in progress (Cont'd)
(a) Movements of major construction in progress
Transfer to fixed Proportion of Capitalised Including: Capitalised
Increase in the assets(Note Other 31 Decemberin vestment to the Project borrowing borrowing costs for the Capitalisation Source of Project name Budg3e1t December 2016 current year IV(12)(c)) Impairment decrease 2017 budget(%) progress costs year rate(%) funding Borrowing, Bohe Coal integration proprietary project 9,785,950,000 3,540,338,713 1,760,786,592 - - - 5,301,125,305 54.17%54.17% 151,722,961 52,732,643 4.41% funding Humen Electric Not Proprietary2*1000MW project Not applicable 87,911,775 - - (87,911,775) - - Not applicable applicable - - - funding Red BayNo.5&6 Proprietary generator units 7,714,370,000 26,360,597 85,849 - - - 26,446,446 0.34% 0.50% - - - funding Borrowing, Lincang Dayakou proprietary Hydropower Station 1,209,578,400 1,051,344,320 71,880,945 (1,094,176,611) - - 29,048,654 92.86%92.86% 142,886,856 23,189,127 4.41% funding Huizhou Natural Gas
thermal and power Borrowing, cogeneration proprietary expansion project 3,516,060,000 267,728,615 1,100,513,997 - - - 1,368,242,612 38.91%38.91% 20,296,649 18,669,106 4.41% funding Jinghai1-4# generators
ultra-low emission
reduction alteration Proprietary project 558,000,000 40,323,340 283,405,175 (281,942,184) - - 41,786,331 58.38%58.38% - - - funding Dianbai Reshui wind Proprietary power plant project 483,714,800 118,376 335,128 - - - 453,504 92.38%98.00% - - - funding Borrowing, Xuwen Qujie wind proprietary power project 466,450,000 157,109,585 178,415,172 - - (22,732,951) 312,791,806 72.91%77.00% 11,395,270 6,813,169 4.41% funding Borrowing, Leizhou Hongxinlou proprietary wind power project 462,920,000 252,688,463 103,942,081 (327,306,140) (29,324,404) - 77.04%100.00% 10,565,245 6,791,373 4.55% funding Borrowing, Xuwen Shiban Ling proprietary wind power project 460,639,300 227,143,871 21,483,914 - - (24,263,819) 224,363,966 53.97%61.00% 8,142,804 4,544,942 4.41% funding Zhanjiang Wind1-4#
generators
ultra-low emission Proprietary renovation project 259,000,000 13,813,751 146,800,899 (117,400,000) - - 43,214,650 61.73%61.73% - - - funding Zhongyue 1, 2# 531,200,000 - 317,584,933 - - - 317,584,933 59.79%90.00% 2,300,278 2,300,278 4.90% Borrowing,
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) generator units proprietary alteration project funding Other infrastructure Not
construction projects Not applicable 308,178,974 159,074,316 (17,343,919) (2,926,004) - 446,983,367 Not applicable applicable - - - Technology
improvement and Not
other projects Not applicable 370,233,383 561,590,074 (568,908,529) - (7,269,162) 355,645,766 Not applicable applicable - - - 6,343,293,763 4,705,899,075 (2,407,077,383) (90,837,779) (83,590,336) 8,467,687,340 347,310,063 115,040,638
(i) Other decreases of construction in progress during the year mainly represented the adjustment on the project costs based on the actual costs (recorded by estimated project progress in previous years) during the year and transfer out of upfront expenses and income from test run that cannot bring economic benefits.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(13) Construction in progress (Cont'd)
(b) Provision for impairment of construction in progress
31 December Increase in the Decrease in the 31 December
Item 2016 current year current year 2017 Reason for provision Humen Electric2*1000MW project (49,461,265) (87,911,775) - (137,373,040) shutoff of construction Zhanjiang Electric old office building Impairment of upfront expenses renovation (886,463) - - (886,463) for construction in progress ShajiaoA4# coal yard sea-fill yard capacity Impairment of upfront expenses increase project (5,802,000) - - (5,802,000) for construction in progress Province Wind Power project early stage Impairment of upfront expenses cost impairment (2,824,090) (2,926,004) - (5,750,094) for construction in progress Lincang Hydro Power project early stage Impairment of upfront expenses cost impairment (3,354,129) - - (3,354,129) for construction in progress (62,327,947) (90,837,779) - (153,165,726)
(i) Preparation work including preliminary feasibility studies, design and three supplies and one levelling have proceeded for the project. However, influenced by national policies upon the industry, the project have stagnated and sign of entire assets impairment have occurred. After impairment test, management made provision of impairment amounting to RMB 87,911,775 for the project in 2017 (2016: RMB 39,107,109). As at 31 December 2017, management have recorded provision for impairment of the project against its full carrying amounts.
(c) As at 31 December 2017, some projects under construction were pending the approval documents. Management expected to obtain the relevant approval documents as scheduled. In addition, management expected stable cash inflows from operating activities once the new projects were put into production. Therefore, the risk of impairment of such projects was low.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(14) Construction materials
31 December 2017 31 December 2016 Equipment for specific use 34,372,179 - Materials for specific use 1,496,854 1,496,854 35,869,033 1,496,854 (15) Fixed assets pending for disposal
31 December 2017 31 December 2016 Scraped parts of power generation equipment 14,622,066 4,304,229 Other equipment 40,167 - 14,662,233 4,304,229
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(16) Intangible assets
Associated projects for
electricity transmission Non-patent
and microwave Transportation technology and
engineering Land use right Sea use right project Franchise right Software others Total Cost
31 December 2016 442,517,684 1,812,946,498 129,906,544 22,468,672 13,720,736 97,267,317 756,769 2,519,584,220 Increase in the current year
Purchase - 49,171 - - - 12,564,712 193,978 12,807,861 31 December 2017 442,517,684 1,812,995,669 129,906,544 22,468,672 13,720,736 109,832,029 950,747 2,532,392,081 Accumulated amortisation
31 December 2016 (405,126,139) (254,537,767) (17,864,908) (21,447,068) (8,958,563) (69,600,907) (347,669) (777,883,021) Increase in the current year
Charge for the year - (40,488,334) (2,619,492) - (952,142) (10,386,924) (66,700) (54,513,592) 31 December 2017 (405,126,139) (295,026,101) (20,484,400) (21,447,068) (9,910,705) (79,987,831) (414,369) (832,396,613) Provision for impairment loss
31 December 2016 (33,189,374) - - (1,021,604) - - - (34,210,978) 31 December 2017 (33,189,374) - - (1,021,604) - - - (34,210,978) Carrying amount
31 December 2017 4,202,171 1,517,969,568 109,422,144 - 3,810,031 29,844,198 536,378 1,665,784,490 31 December 2016 4,202,171 1,558,408,731 112,041,636 - 4,762,173 27,666,410 409,100 1,707,490,221
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(16) Intangible assets(Cont’d)
(a) In 2017, the amortised amount of intangible assets was RMB 54,513,592 (2016: RMB 54,051,058).
(b) As at 31 December 2017, Provisions for impairment of the use rights of associated projects for electricity transmission and transformation, microwave engineering use right and transportation engineering of Yuejia Electric were made at amount of RMB 34,210,978 (31 December 2016: RMB 34,210,978).
(c) As at 31 December 2017, the Group had obtained land use right certificates for all of its lands, except for lands with carrying amount of RMB 48,304,742 that were under approval procedures for land use (31 December 2016: RMB 51,465,074). After consulting theGroup’s legal consultant, management believed that there were no substantial legal obstacles in obtaining the certificates and no material adverse impact on the normal operation of the Group will be incurred.
(17) Goodwill
31 December 2017 and 2016 Goodwill -
Guangdong Province Wind Power Generation Co., Ltd., (“Guangdong
Wind Power”) 2,449,886 Lincang Yudean Energy Co., Ltd., (“Lincang Energy”) 25,036,894 27,486,780 (a) In 2013, the Group acquired55% shares in Guangdong Wind Power with a combined cost of RMB 5,994,670. The excess of the combined cost over the fair value of theGroup’s share of Guangdong WindPower’s identifiable assets and liabilities amounted to RMB 2,449,886 and was recognised as good will.
(b) On 5 January 2015, the Group exchanged for51.00% of the equity in Lincang Energy held by third parties with14.34% of equity in Weixin Yuntou. The excess of the combined cost over the fair value of theGroup’s share of LincangEnergy’s identifiable assets and liabilities amounted to RMB 25,036,894 and was recognised as goodwill.
(18) Long-term prepaid expenses
Amortisation
31 December Increase in the charged in the 31 December 2016 current year current year 2017 Long-term lease charges 21,371,959 - (2,028,166) 19,343,793 Improvements to fixed assets held
under operating leases 4,675,141 2,689,094 (1,674,621) 5,689,614 Others 8,564,612 1,391,211 (7,981,859) 1,973,964 34,611,712 4,080,305 (11,684,646) 27,007,371
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(19) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
31 December 2017 31 December 2016
Deductible temporary Deductible temporary
differences and Deferred tax differences and Deferred tax deductible losses assets deductible losses assets Provision for asset
impairment 601,414,037 150,345,688 778,810,681 193,720,196 Deductible losses 543,075,416 135,768,855 112,722,870 28,180,717 Intra-Group transactions 202,928,868 50,732,217 220,966,988 55,241,747 Net income from test run
included in construction
in progress 117,089,330 26,510,083 53,276,223 13,158,344 Employee benefits
payable 86,241,170 21,560,293 58,555,576 14,838,523 Depreciation of fixed
assets 76,893,416 19,223,353 77,011,308 19,252,827 Capital government grants 56,576,917 14,144,229 63,727,865 15,931,966 Amortisation of land use
right 3,170,586 792,647 3,011,274 752,819 Pre-operating expenses - - 3,089,245 386,156 1,687,389,740 419,077,365 1,371,172,030 341,463,295 Including:
Expected to be recovered
within one year
(inclusive) 115,367,229 153,444,772 Expected to be recovered
after one year 303,710,136 188,018,523 419,077,365 341,463,295 (b) Deferred tax liabilities before offsetting
31 December 2017 31 December 2016
Taxable temporary Deferred tax Taxable temporary Deferred tax difference liabilities difference liabilities Changes in fair value of
available-for-sale
financial assets
included in other
comprehensive income (153,664,369) (38,416,092) (164,407,693) (41,101,923) Revaluation upon
acquisition (91,379,088) (22,844,772) (94,486,868) (23,621,718) Net expenses in test run
included in construction
in progress (37,809,283) (9,452,322) (42,114,648) (10,528,662)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) (282,852,740) (70,713,186) (301,009,208) (75,252,303) Including:
Expected to be recovered
within one year
(inclusive) (1,492,421) (2,329,404) Expected to be recovered
after one year (69,220,765) (72,922,899) (70,713,186) (75,252,303)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(19) 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 2017 31 December 2016 Deductible temporary differences 936,551,327 913,316,296 Deductible losses 587,890,568 252,062,736 1,524,441,895 1,165,379,032 (d) Deductible losses for which no deferred income tax asset was recognised will expire in the following years: 31 December 2017 31 December 2016 2017 - 67,060,276 2018 2,504,832 2,504,832 2019 8,513,773 7,350,102 2020 5,008,444 7,401,514 2021 148,194,058 167,746,012 2022 423,669,461 - 587,890,568 252,062,736 Management believed that as at the maturity date for the above deductible losses, the relevant subject of tax payment does not have sufficient taxable income to deduct the above deductible losses, therefore no related deferred tax asset was recognised.
(e) The net balances of deferred tax assets and liabilities after offsetting are as follows:
31 December 2017 31 December 2016
Balance after Balance after Offset amount offset Offset amount offset Deferred tax assets (46,524,326) 372,553,039 (37,534,026) 303,929,269 Deferred tax liabilities 46,524,326 (24,188,860) 37,534,026 (37,718,277)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(20) Other non-current assets
Item 31 December 2017 31 December 2016 Prepayment for construction 350,347,973 542,965,106 Unrealised losses on sale and leaseback (a) 173,916,629 193,703,865 Prepayment for equipment 165,761,100 1,081,412,840 Prepayments for land use right 3,732,680 39,765,321 Prepayments for house purchase - 150,799,140 Others 889,151 2,878,159 694,647,533 2,011,524,431 (a) Unrealised losses on leaseback are the difference between the selling price of the power generation equipment and its carrying value, and its remaining balance after depreciation was based on the depreciation schedule of the leaseback power generation equipment.
(21) Provision for asset impairments
31 December Increase in the Reversal in the Write-off in the 31 December 2016 current year current year current year 2017 Provision for bad debts (6,423,698) (422,829) - - (6,846,527) Including:
Provision for bad debts for other
receivables (6,423,698) (422,829) - - (6,846,527) Provision for decline in the value of
inventories (59,602,850) - - 42,181,991 (17,420,859) Provision for impairment of fixed assets(1,316,186,423) (29,483,080) - 459,064,537 (886,604,966) Provision for impairment of
construction in progress (62,327,947) (90,837,779) - - (153,165,726) Provision for impairment of
available-for-sale financial assets - (25,010,686) - - (25,010,686) Provision for impairment of intangible
assets (34,210,978) - - - (34,210,978) (1,478,751,896) (145,754,374) - 501,246,528 (1,123,259,742) (22) Short-term borrowings
31 December 2017 31 December 2016 Unsecured loan 9,270,000,000 5,758,860,000 (a) As at 31 December 2017, the annual interest rates of the short-term borrowings ranged from3.92% to5.02% (31 December 2016: from3.92% to5.32%).
(b) As at 31 December 2017, balance of short-term credit loans provided by related party Yudean Finance amounted to RMB 5,637,000,000 (31 December 2016: RMB 3,710,000,000) (Note VIII(6)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(23) Notes payable
31 December 2017 31 December 2016 Bank acceptance notes (a) 297,611,800 1,088,100,837 Trade acceptance notes (b) - 242,380,000 297,611,800 1,330,480,837 The above notes payable are all due within one year.
(a) As at 31 December 2017, the Group had RMB 297,611,800 acceptance notes from related party Yudean Finance (31 December 2016: RMB 655,078,278).
(b) The Group used acceptance notes to pay for coal or fuel procured from theCompany’s joint venture, Fuel Supply. According to the three-party agreement signed among the Group, Yudean Finance and Fuel Supply, discounting expenses will be borne by the Group when Fuel Supply discounts the notes they receive. As at 31 December 2017, the balance of bank acceptance notes issued by the Group and discounted by Fuel Supply with Yudean Finance amounted to RMB 230,000,000 (31 December 2016: RMB 847,458,278) with discount rate of2.70% to4.17% (31 December 2016:2.70% to3.48%). The acceptance notes were ranging from three to twelve months (31 December 2016: due from three to twelve months). The amount of the above discounted notes payable represented the amount payable to Yudean Finance. The Group paid total amount of RMB 13,638,031 (31 December 2016: RMB 20,564,233) of discounting interest to Yudean Finance in 2017 (Note VIII(6)).
(24) Accounts payable
31 December 2017 31 December 2016 Fuel payable 1,530,075,127 2,190,716,850 Materials and spare parts payable 483,460,431 799,093,816 Maintenance and administrative fees payable 89,461,265 89,461,265 Others 116,030,438 87,978,515 2,219,027,261 3,167,250,446 (a) As at 31 December 2017, accounts payable ageing more than one year of RMB 136,266,488 (31 December 2016: RMB 156,691,389) mainly were maintenance and administrative fees payable of RMB 89,461,265 (31 December 2016: RMB 89,461,265) and fuel and materials payable of RMB 46,805,223 (31 December 2016: RMB 67,230,124).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(25) Advances from customers
31 December 2017 31 December 2016 Advances for grid payment 1,713,424 12,208,678 Advances from disposal of renewable resources - 162,884 Others 224,799 84,798 1,938,223 12,456,360 (a) As at 31 December 2017, there was no large amount advances from customers ageing over one year (31 December 2016: Nil).
(26) Employee benefits payable
31 December 2017 31 December 2016 Short-term employee benefits payable (a) 140,101,582 125,994,004 Defined contribution plans payable (b) - - Post-employment benefits payable (c) 17,637,046 18,128,124 157,738,628 144,122,128 (a) Short-term employee benefits
31 December Increase in the Decrease in the 31 December 2016 current year current year 2017 Wages and salaries, bonus,
allowances and subsidies 50,978 1,153,893,717 (1,153,893,717) 50,978 Staff welfare 3,719,802 111,119,864 (112,974,782) 1,864,884 Social insurance 45,602,861 64,170,915 (59,364,014) 50,409,762 Including: Medical insurance 45,602,861 57,205,341 (52,398,440) 50,409,762 Work injury insurance - 3,683,306 (3,683,306) - Maternity insurance - 3,282,268 (3,282,268) - Housing funds - 149,745,956 (149,745,956) - Labour union funds and employee
education funds 74,382,591 50,376,334 (41,917,257) 82,841,668 Other short-term employee
benefits 2,237,772 104,412,515 (101,715,997) 4,934,290 125,994,004 1,633,719,301 (1,619,611,723) 140,101,582 (b) Defined contribution plans payable
31 December Increase in the Decrease in the 31 December 2016 current year current year 2017
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Pension insurance - 161,827,107 (161,827,107) - Unemployment insurance - 3,965,046 (3,965,046) - Annuity - 52,173,048 (52,173,048) - - 217,965,201 (217,965,201) - (c) Post-employment benefits payable refer to early retirement benefits payable due by the Group within one year (Note IV(38)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(27) Taxes payable
31 December 2017 31 December 2016 Unpaid VAT 159,547,521 133,295,631 Enterprise income tax payable 59,224,530 128,468,570 Individual income tax payable 29,612,341 33,222,950 Land use tax payable 14,990,255 9,707,984 City maintenance and construction tax payable 3,500,667 2,327,949 Pollution discharge fee payable 2,996,840 3,456,932 Property tax payable 2,877,522 6,552,214 Educational surcharge payable 2,895,952 1,954,625 Embankment fee payable - 2,879,847 Others 1,639,774 5,053,142 277,285,402 326,919,844 (28) Interests payable
31 December 2017 31 December 2016 Interests payable for debentures 50,486,869 44,398,814 Interests payable for long-term borrowings with
interest paid in instalment and principal repaid
on maturity 36,701,382 27,938,770 Interests payable for short-term borrowings 11,010,687 10,807,042 Other interests payable 354,166 504,167 98,553,104 83,648,793 (29) Dividend payable
31 December 2017 31 December 2016 Payable to non-tradable owners of the Company 9,703,930 9,703,930 The above dividend payable refers to dividend payable for non-tradable shares reform that is in the process of completing necessary formalities. The payment will be arranged after the formalities are completed.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(30) Other payables
31 December 2017 31 December 2016 Construction and equipment payable 3,430,308,319 2,587,231,394 State Oceanic Administration penalty payable (IV(54)(a)) 172,144,350 172,000,000 Project warranty payable 156,112,962 369,890,625 Payable for advances 12,726,072 19,936,021 Payable for purchase of unit capacity 4,000,000 4,000,000 Others 133,220,968 139,498,955 3,908,512,671 3,292,556,995 As at 31 December 2017, other payables of RMB 1,742,036,695 (31 December 2016: RMB 1,076,042,535) aged over one year mainly represent (1) construction and equipment payable, and project warranty payable, that have not been settled because the related projects have not completed their final inspection or are still within their warranty periods; and (2) State Oceanic Administration penalty payable, that has not been settled because judicial proceedings related to the penalty have not completed.
(31) Current portion of non-current liabilities
31 December 2017 31 December 2016 Long-term borrowings due within one year (a) (Note
IV(33)) 1,445,497,943 990,474,807 Debentures payable due within one year (b) (Note IV(34)) 1,197,935,476 - Long-term payables due within one year (c) (Note IV(35)) 369,256,941 443,169,716 3,012,690,360 1,433,644,523 (a) Long-term borrowings due within one year
Item 31 December 2017 31 December 2016 Pledged loan (i) 209,579,575 184,196,290 Guaranteed loan (ii) 58,427,500 58,427,500 Credit loan 1,177,490,868 747,851,017 1,445,497,943 990,474,807 (i) As at 31 December 2017, the charge right for electricity and accounts receivable were treated as pledge for long-term borrowings due within one year for the following subsidiaries:
31 December 2017 31 December 2016 Yuejiang Power 180,897,292 105,353,210 Zhanjiang Wind Power 17,520,000 17,520,000 Xuwen Wind Power 10,062,668 61,323,080
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Leizhou Wind Power 1,099,615 - 209,579,575 184,196,290
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(31) Current portion of non-current liabilities(Cont’d)
(a) Long-term borrowings due within one year(Cont’d)
(ii) As at 31 December 2017, Zhanjiang Wind Power provided maximum amount guarantee for Xuwen WindPower’s long-term borrowings of RMB 10,427,500 (31 December 2016: RMB 10,427,500) due within one year. The Company provided joint and several guarantee for YuejiangPower’s long-term borrowings of RMB 48,000,000 (31 December 2016: RMB 48,000,000) due within one year.
(iii) As at 31 December 2017, the annual interest rate of long-term borrowings due within one year range from1.29% to4.90% (31 December 2016: from1.29% to5.31%). The borrowings will be due within 12 months. (b) Details of debentures payable due within one year are disclosed in Note IV(34).
(c) Long-term payables due within one year
As at 31 December 2017, long-term payables due within one year were the net financing lease payable of RMB 369,256,941 (namely, the remaining net amount of the total amount of RMB 403,242,457 after deducting the unrecognised finance charge of RMB 33,985,516). As at 31 December 2016, long-term payables due within one year were the net financing lease payable of RMB 443,169,716 (namely, the remaining net amount of the total amount of RMB 557,802,821 after deducting the unrecognised finance charge of RMB 114,633,105).
As at 31 December 2017, details of long-term payables due within one year have been disclosed in Note VI(35).
(32) Other non-current liabilities
31 December 2017 31 December 2016 Short-term debentures payable - 1,723,070,000
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(32) Other current liabilities(Cont’d)
(a) Related information of short-term debentures payable are as follows:
Issuance Amortisation of 31 Issuance Maturity Issuance 31 December during the Interest at discounts or Repayments for December Face value date period amounts 2016 year face value premium the year 2017 First batch of short-term
financing notes issued by
Guangdong Electric Power
Development Co., Ltd.,
2016 700,000,000 07/06/2016 270 days 700,000,000 711,565,644 - 3,448,219 - (715,013,863) - Second batch of short-term
financing notes issued by
Guangdong Electric Power
Development Co., Ltd.,
2016 500,000,000 11/08/2016 270 days 500,000,000 505,017,370 - 4,453,699 - (509,471,069) - First batch of short-term
financing notes issued by
Guangdong Huizhou
Pinghai Power Plant in
2016 500,000,000 20/07/2016 270 days 500,000,000 506,486,986 - 4,128,082 - (510,615,068) - 1,700,000,000 1,700,000,000 1,723,070,000 - 12,030,000 - (1,735,100,000) -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(33) Long-term borrowings
31 December 2017 31 December 2016 Pledge loan (a) 2,698,978,707 2,537,296,396 Loan secured by mortgages (b) 85,000,000 226,400,000 Guaranteed loan (c) 1,665,240,000 1,716,667,500 Credit loan 16,462,003,105 16,398,282,948 20,911,221,812 20,878,646,844 Less: Long-term borrowings due within one
year (Note IV(31)(a)) (1,445,497,943) (990,474,807) 19,465,723,869 19,888,172,037 (a) As at 31 December 2017, the long-term pledge loan of the following subsidiaries were secured by the future revenue from power generation and accounts receivable.
31 December 2017 31 December 2016 Yuejiang Power (i) 2,276,504,889 2,223,720,000 Leizhou Wind Power (ii) 188,420,594 - Zhanjiang Wind Power (iii) 156,465,000 173,985,000 Xuwen Wind Power (iv) 77,588,224 139,591,396 2,698,978,707 2,537,296,396 (i) As at 31 December 2017, theCompany’s subsidiary Yuejiang Power borrowed RMB 2,276,504,889 from bank consortium and the Industrial and Commercial Bank of China, secured by YuejiangPower’s right to charge electricity. The maturity date is on 21 June 2020 and the annual interest rate ranges from4.41% to4.53%. The borrowings include long-term borrowings due within one year amounting to RMB 180,897,292 (2016: Totally RMB 2,223,720,000, including long-term borrowings due within one year amounting to RMB 105,353,210).
(ii) As at 31 December 2017, theCompany’s subsidiary Leizhou Wind Power borrowed RMB 188,420,594 from the Industrial and Commercial Bank of China, secured by Leizhou WindPower’s right for revenue of electricity charge. The maturity date is on 29 April 2030 and the annual interest rate ranges from4.41% to4.66%. The borrowings include the long-term borrowings due within one year amounting to RMB 1,099,615, which was changed from credit loan to pledge loan in accordance with the contract, since the company became officially under operation in December 2017. (the credit loan for the year ended 31 December 2016 was RMB 12,300,209).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(33) Long-term borrowings (Cont'd)
(a) Long-term pledge loan (Cont'd)
(iii) As at 31 December 2017, theCompany’s subsidiary Zhanjiang Wind Power borrowed RMB 156,465,000 from the Industrial and Commercial Bank of China, secured by Zhanjiang WindPower’s right for revenue of electricity charge. The maturity date is on 7 May 2024 and the annual interest rate is4.66% (2016:4.41%). The borrowings include long-term borrowings due within one year amounting to RMB 17,520,000 (2016: RMB 173,985,000, including a long-term borrowings due within one year amounting to RMB 17,520,000).
(iv) Based on the Loan Transfer Agreement of Yudean Yongshi Wind Power Project for Loan Protocol under the Climate Change Framework of European Investment Banks between Zhanjiang Wind Power and Department of Finance of Guangdong Province, theCompany’s subsidiary Zhanjiang Wind Power acquired an USD loan transferred from the Loan Protocol under‘Chinese Climate ChangeFramework’ between China and European investment banks. The loan has been used on Xuwen Yongshi Wind Power project and is secured by Xuwen WindPower’s right for revenue of electricity charge. As at 31 December 2017, the balance of the loan above was totalled at USD 11,874,173 (equivalent to RMB 77,588,224) (2016: USD 20,122,733 (equivalent to RMB 139,591,396)), among which balance of the long-term borrowings due within one year amounted to USD 1,540,000 (equivalent to RMB 10,062,668) (2016: USD 8,840,000 (equivalent to RMB 61,323,080)). The maturity date of the loan is 2 March 2029 with the annual interest rate from0.92%% to1.29% (2016: from0.92% to1.29%). Meanwhile the loans are guaranteed by the Company.
(b) As at 31 December 2017, long-term borrowings of RMB 85,000,000 (31 December 2016: RMB 226,400,000) of Shenzhen Guangqian Electric Co., Ltd (“Guangqian Electric”) was secured by power generation equipment with a carrying amount of RMB 757,878,678 and a cost of RMB 2,562,570,238) (31 December 2016: a carrying amount of RMB 816,058,138 and a cost of RMB 2,562,570,238). The annual interest rate of the loan is from4.41% to4.86% (31 December 2016: from4.41% to5.09%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(33) Long-term borrowings (Cont'd)
(c) As at 31 December 2017, the balance of theCompany’s subsidiary Xuwen WindPower’s long-term borrowings from Yudean Finance was RMB 37,200,000, including long-term borrowings due within one year of RMB 7,400,000, which was secured by the guarantee provided by Zhanjiang Wind Power (2016: RMB 44,600,000, including long-term borrowings due within one year amounted to RMB 7,400,000). The annual interest rate of the loan is4.66% (2016:4.66%), and the maturity date is on 21 August 2022.
As at 31 December 2017, the balance of theCompany’s subsidiary Xuwen WindPower’s long-term borrowings from Yudean Finance was RMB 19,000,000, which was secured by the guarantee provided by Zhanjiang Wind Power (2016: RMB 12,000,000). The annual interest rate of the loan is4.66% (2016:4.66%), and the maturity date is on 28 November 2031.
As at 31 December 2017, the balance of theCompany’s subsidiary Xuwen WindPower’s long-term loan from Bank of Communications Co., Ltd. was RMB 17,040,000, including long-term borrowings due within one year of RMB 3,027,500, which was secured by the guarantee provided by Zhanjiang Wind Power (2016: RMB 20,067,500, including long-term borrowings due within one year amounted to RMB 3,027,500). The annual interest rate of the loan is4.90% (2016:4.90%), and the maturity date is on 5 December 2022.
As at 31 December 2017, Yudean provided guarantee for theCompany’s long-term loan of RMB 1,500,000,000 (2016: RMB 1,500,000,000) from Pacific Investment Management. The interest rate of the loan is5.00% (2016:5.00%), and the maturity date is on 13 August 2020 (Note VIII(5)(c)).
As at 31 December 2017, the long-term borrowings of theCompany’s subsidiary Yuejiang Power amounting to RMB 92,000,000 were secured by the guarantee provided by the Company based on its proportion of shareholding. The balance of the long-term borrowings due within one year included in the loan amounts to RMB 48,000,000 (31 December 2016: RMB 140,000,000, among which balance of long-term borrowings due within one year was RMB 48,000,000). The interest rate of the loan is4.75% (2016:4.90%), with the maturity date on 2 July 2019.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(34) Debentures payable
Transfer to current
portion of
Amortisation non-current
31 December Interests at of discounts Other liabilities during 31 December 2017 2016 face value or premium decrese the year
16 Pinghai
Bond 01 (a) 703,141,849 (21,700,000) (793,211) 27,466,849 - 698,168,211 12 Yudean
Bond (b) 1,196,982,619 (59,400,000) (952,857) 59,400,000 1,197,935,476 - 1,900,124,468 (81,100,000) (1,746,068) 86,866,849 1,197,935,476 698,168,211 (a) As approved by CSRC Circular SFC License[2016] No. 1864, theCompany’s subsidiary Guangdong Huizhou Pinghai Power Plant Co., Ltd (“Pinghai Power”) issued 5-year book-entry corporate debentures in real-name system with face value of RMB 700,000,000 (“16 Pinghai 01”) to the public on 26 September 2016. The Company altogether raised RMB 697,375,000 after deducting an issue expense of RMB 2,625,000. The loan is subject to an annual interest rate of3.10% counted from 26 September 2016 and should be payable annually on simple interest. As at 31 December 2017, debentures payable were measured at amortised cost using effective interest method, with the effective interest rate of3.18%.
(b) As approved by CSRC Circular SFC License[2012] No. 1421, the Company issued 7-year book-entry corporate debentures in real-name system with face value of RMB 1,200,000,000 (“12 Yudean Bond”) to the public in 18 March 2013. The Company altogether raised RMB 1,193,330,000 after deducting an issue expense of RMB 6,670,000. The loan is subject to an annual interest rate of4.95% counted from 18 March 2013 and should be payable annually on simple interest. After a maturity period of 5 years, the bondholder is entitled to sell the “12 Yudean Bond” held back to the company at full/part amount of its face value within the backsell declaration period for investors. The Company will transfer out the balance of debentures payable to current portion of non-current liabilities. As at 31 December 2017, debentures payable were measured at amortised cost using effective interest method, with the effective interest rate of5.04%.
(35) Long-term payables
31 December 2017 31 December 2016 Sales and leaseback and other payables (a) 1,827,516,182 2,270,722,370 Payables for share repurchase (b) 90,000,000 90,000,000 Less: Current portion of long-term payables (369,256,941) (443,169,716) 1,548,259,241 1,917,552,654 (a) The finance lease payable is mainly the balance of minimum lease payment less unrecognised finance charge for power generation equipment by subsidiaries - Jinghai Power, Yuejiang Power and Zhongyue Energy. The Company provided guarantee for YuejiangPower’s finance lease up to65% of total amount of the finance lease and signed a counter guarantee contract with Yuejiang Power.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(35) Long-term payables(Cont’d)
(a) (Cont'd)
TheGroup’s minimum finance lease payments are as follows:
Minimum finance lease payments 31 December 2017 31 December 2016 Within 1 year (inclusive) 403,242,457 557,802,821 Over 1 year but within 2 years (inclusive) 373,429,119 459,467,904 Over 2 years but within 3 years (inclusive) 353,810,789 422,733,636 Over 3 years 761,447,305 1,267,888,524 Sub-total 1,891,929,670 2,707,892,885 Less: Unrecognised financial expense (64,413,488) (437,170,515) 1,827,516,182 2,270,722,370 The above finance lease payable due within one year less unrecognised finance charge is listed in Note IV(31).
(b) In 2016, the share repurchase payables are: Guangdong Yuecai Investment Management Co., Ltd (“Yuecai Investment”) increasing capital of RMB 10,000,000 in theCompany’s subsidiary Guangdong Yudean Leizhou Wind Power Co., Ltd (“Leizhou Wind Power”), increasing capital of RMB 50,000,000 in theCompany’s subsidiary Dianbai Wind Power; and acquiring30% stake in theCompany’s holding subsidiary Xuwen Wind Power at a consideration of RMB 30,000,000. According to the agreement, the Company shall repurchase the shares held by Yuecai Investment after the five-year equity participation, and the price of repurchase shall equals to YuecaiInvestment’s actual amount of contribution of RMB 90,000,000 in the capital injection and the fixed rate equity premium.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(36) Payables for specific projects
Beginning Increase in the Decrease in the Ending Item balance current year current year balance Supporting funds for expansion (a) 24,960,000 - - 24,960,000 Supply of water, electricity and heat
and property management (b) - 39,645,011 - 39,645,011 Relocation and construction of windy
power plant 1,715,385 - 1,715,385 - 26,675,385 39,645,011 1,715,385 64,605,011 (a) The payables for specific project represent the fund granted for benefits improvement and capacity expansion by governments at provincial and central level. According to the document issued by Yunnan Water Conservancy& Hypower Investment Co., Ltd. (Yun Shui Tou Fa[2015] No. 16), such payables for specific project were subject to an interest rate of4% from 1 January 2015. The corresponding interest was recorded in financial expenses by the Company.
(b) Such payables for specific project represent the fund for separated hand-over of supply of water, electricity and heat and property management, which was allocated by the Department of Finance of Guangdong Province and Yudean, including RMB 18,391,895 from the Department of Finance of Guangdong Province and RMB 21,253,116 from Yudean. According to the document issued by Department of Finance of Guangdong Province (Yue Cai Gong[2017] No. 222), the Department allocated subsidies for necessary renovation and reconstruction of the supply of water, electricity and heat and property management inemployees’ family area charged by provincial enterprises before the separated hand-over.
(37) Deferred income
Decrease in
31 December Increase in the the current 31 December
2016 current year year 2017 Source Grants Government provided by grants (a) 125,650,072 33,592,900 (16,722,709) 142,520,263 government
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(37) Deferred income(Cont’d)
(a) Government grants
Decrease in the current year
31 December Increase in the Recorded in Other 31 December
Government grants Note 2016 current year other income movements 2017 Asset related/Income related Shajiao A Zhenkou pump house (i) 29,313,253 - (753,231) - 28,560,022 ASSETS Energy saving funds (ii) 23,736,827 - (2,873,723) - 20,863,104 ASSETS Tax refund for PRC-made equipment (iii) 19,517,767 - (2,296,208) - 17,221,559 ASSETS Development and competitiveness funds from SASAC (iv) 9,333,333 - (666,667) - 8,666,666 ASSETS Incentives for energy efficiency of power plant by Dongguan city (v) 9,324,825 - (543,194) - 8,781,631 ASSETS5# generation set of desulfurization project 6,153,847 - (3,076,923) - 3,076,924 ASSETS Expansion on flow reconstruction project 4,149,062 - (262,007) - 3,887,055 ASSETS Sha A– 2016 central finance energy saving fund 4,038,125 - (255,001) - 3,783,124 ASSETS Refurbishment on air preheater 3,299,233 - (205,791) - 3,093,442 ASSETS Dianbai Reshui wind power plant project 3,000,000 - - - 3,000,000 ASSETS Special prize funds of recycle economy and energy saving by Shenzhen city 2,953,988 - (246,667) - 2,707,321 ASSETS Denitration project 2,893,163 - (308,134) - 2,585,029 ASSETS 2016 Provincial industry and information development special fund for
technological transformation of enterprises 1,500,000 - - (1,500,000) - ASSETS Special funds for differential electricity price 1,318,000 - (291,114) - 1,026,886 ASSETS Water-freshing project 1,230,770 - (153,846) - 1,076,924 ASSETS Special prize funds of recycle economy and energy saving by Shaoguan city 1,125,999 - (202,103) - 923,896 ASSETS Circulating water pump special fund for technological renovation 1,000,000 - - - 1,000,000 ASSETS1&2# Air preheater energy saving project 1,000,000 - - - 1,000,000 ASSETS Development fund for Dayakou Project 400,000 - (400,000) - - ASSETS Sha A– Return of port dues 259,510 - (259,510) - - ASSETS Social security treatment clearing account relating tofirm’s stable position subsidy 102,370 - - - 102,370 Income
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Comprehensive technology upgrading for the energy saving of1&2# generator
units turbine (vi) - 10,000,000 - - 10,000,000 ASSETS Second incentives for comprehensive and typical demonstration projects under
financial policies of energy saving - 9,000,000 (900,000) - 8,100,000 ASSETS Energy saving funds used as policy liquidation subsidies in previous years - 4,640,000 (474,769) - 4,165,231 ASSETS Government subsidies from the financial treasury payment centre of Qujiang
District, Shaoguan - 3,952,900 (384,521) - 3,568,379 ASSETS Specific funds for denitrification and energy saving reconstruction of 300MW
generator units. - 6,000,000 (669,300) - 5,330,700 ASSETS 125,650,072 33,592,900 (15,222,709) (1,500,000) 142,520,263
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV
Notes to the consolidated financial statements(Cont’d)
(37) Deferred income(Cont’d)
(a)
Government grants (Cont'd)
(i)
In 2015, as required by the local government, the pump house of Shajiao A located in Changdi Road, Dianchang town, was required to remove, relocate and reconstruct with provisional estimation of compensation amounting to RMB 20,320,000. On 9 October 2016, since the Humen government finally confirmed total compensation of RMB 30,411,446, the newly added compensation for removal and reconstruction this year was RMB 7,211,446, which shall be disclosed under payables for specific projects on receipt of the amount, transferred into deferred income when expenditures for removal and reconstruction incur, and amortized upon completion of relevant construction over 30 years.
(ii) This represents the energy-saving funds received by Yuejiang Power for reform of energy saving and emission reduction technology in 2015, and assistance fund received in 2016 for representative demonstration project under the energy saving and emission reduction policy. It is amortised over the estimated useful lives of 13 years from the completion date of the project.
(iii) This represents the value-added tax refunded for purchase of PRC-produced equipment received by Shibeishan. It is amortised over the estimated useful lives of 13 years from the completion date of the project.
(iv) This represents the reform and development fund received by Zhanjiang Wind Power in 2011 in relation to Yongshi Wind Project. The Group amortises the fund during the income period of the project on an average basis.
(v) This represents the No.1918, No.1692 and No.1794 incentives of energy efficiency of power plant of Dongguan city received by Shajiao A in 2014, 2015 and 2016 respectively. It is amortised over the estimated useful lives of 13 years from the completion date of the project.
(vi) This presents the government grants (first batch) received by Zhongyue Energy in Zhanjiang in 2017 from the investment plan under the central budget (2017) in priority projects of resource conservation and recycling. The subsidy is used for the comprehensive energy saving technology upgrading project of the turbines of ZhongyueEnergy’s1&2# generator units. As at 31 December 2017, the technology upgrading project for such generator units was yet to be accomplished and transferred to fixed assets. The Group expects that the government grants will be amortised on the straight-line basis over the estimated useful lives of assets after the completion of the project.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(38) Long-term employee benefits payable
31 December 2017 31 December 2016 Termination benefits (a) 75,609,880 106,185,517 Other long-term employee benefits payable (b) 39,097,210 40,345,908 Less: The current portion to be paid (23,084,183) (23,699,176) 91,622,907 122,832,249 The employee benefits payable within one year are included in employee benefits payable.
Some employees of the Group have taken early retirement. As at the balance sheet date, the main actuarial assumptions used in estimating the obligation arising from the early retirement benefits are as follows:
31 December 2017 31 December 2016 Discount rates 4.22% 2.70% -4.27% Early retirement benefits recognised in profit or loss for the current period:
2017 2016 General and administrative expenses (c) (46,790,029) 78,442,638 Financial expenses 118,849 93,078 (a) According to theGroup’s regulations for internal retirement of employees, the employees can apply for early retirement before statutory retirement age. Employees can obtain salary on a monthly basis by a certain ratio of the original salary until they reach the statutory retirement age. Management expects the termination benefits to be paid in the future are determined by the present value of cash flow, when accrued the above termination benefits. As at 31 December 2017, 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 internal retirement and estimated the present value of future termination benefits by treasury bond interest rate of4.22% (2016:2.70% to4.27%) of the same period. As at 31 December 2017 the Group transferred the termination benefits of RMB 57,972,834 (31 December 2016: RMB 88,057,393) due over one year into long-term employee benefits payable. Termination benefit due within one year totalled at RMB 17,637,046 (31 December 2016: RMB 18,128,124) are recognised in employee benefits payable.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(38) Long-term employee benefits payable(Cont’d)
(b) According to relevant regulations on social medical insurance in places where the subsidiaries of the Company and the Group locate, individual participating basic medical insurance for urban residents shall continue to make contribution until he reaches the regulated contribution years after he reaches the statutory retirement age, if his accumulated contribution years do not satisfy the local regulations. The expected present values of cash flows that shall be paid for medical insurance after the retirement of employees till prescribed terms are recognised as long-term employee benefits payable and recorded in profit or loss for the period or cost of relevant assets. As at 31 December 2017, the balance of theGroup’s other long-term employee benefits payable was mainly the additional payment of medical insurance made for retired employees. The Group calculated, based on a certain ratio of the original salary, the expected expense for each employee in each year from the end of current year to the prescribed accumulated payment years and estimated the future present value of cash payment for the medical insurance of related retired employees by treasury bond interest rate of4.22% (2016:2.70% to4.27%) in the same period. As at 31 December 2017, other long-term employee benefits payable totalled at RMB 39,097,210 (31 December 2016: RMB 40,345,908), and the other long-term employee benefits payable due within one year amounted to RMB 5,447,137 (31 December 2016: RMB 5,571,052) charged into employee benefits payable.
(c) In 2017, the Group lowered the remuneration standards for internal retirement, hence reduced the cash disbursement of predicted future termination benefits, and accordingly decreased administrative expenses amounting to RMB 77,146,950 during this year.
(39) Other non-current liabilities
31 December 2017 31 December 2016 Capital injection 16,405,569 39,000,000 As at 31 December 2017 and 2016, theGroup’s other non-current liabilities represented the capital injection received by Yuejiang Power from minority shareholders. However, such capital injection was recorded as other non-current liabilities as the registration for changes of business license has not been completed.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(40) Share capital
Movements for the current year
Housing fund
31 December Issuance of transferred to 31 December 2016 new shares Bonus share shares Others Sub-total 2017 Shares subject to trading restriction:
- Shares held by domestic state-owned legal person 1,893,342,621 - - - - - 1,893,342,621 - Other domestic shares
Including: Shares held by domestic non-state-owned
legal person 4,620,666 - - - - - 4,620,666 Shares held by domestic natural
person 3,536 - - - - - 3,536 Shares not subject to trading restriction
- RMB-dominated ordinary shares 2,553,909,163 - - - - - 2,553,909,163 - Domestically-listed foreign shares 798,408,000 - - - - - 798,408,000 5,250,283,986 - - - - - 5,250,283,986 Movements for the current year
Housing fund
31 December Issuance of transferred to 31 December 2015 new shares Bonus share shares Others Sub-total 2016 Shares subject to trading restriction:
- Shares held by domestic state-owned legal person 1,893,342,621 - - - - - 1,893,342,621 - Other domestic shares
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Including: Shares held by domestic non-state-owned
legal person 4,620,666 - - - - - 4,620,666 Shares held by domestic natural
person 3,536 - - - - - 3,536 Shares not subject to trading restriction
- RMB-dominated ordinary shares 2,553,909,163 - - - - - 2,553,909,163 - Domestically-listed foreign shares 798,408,000 - - - - - 798,408,000 5,250,283,986 - - - - - 5,250,283,986
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(41) Capital surplus
31 December Increase in the Decrease in the 31 December 2016 current year current year 2017 Share premium 4,445,477,866 - - 4,445,477,866 Revaluation reserve 119,593,718 - - 119,593,718 Investment from Yudean 395,000,000 - - 395,000,000 Share of interest in the investee
based on shareholding 20,785,182 - - 20,785,182 Transfer of capital surplus
recognised under previous
accounting system 20,474,592 - - 20,474,592 Others 1,676,120 1,243,207 - 2,919,327 5,003,007,478 1,243,207 - 5,004,250,685 31 December Increase in the Decrease in the 31 December 2015 current year current year 2016 Capital premium 4,445,477,866 - - 4,445,477,866 Revaluation reserve 119,593,718 - - 119,593,718 Investment from Yudean 395,000,000 - - 395,000,000 Share of interest in the investee
based on shareholding 24,876,079 - (4,090,897) 20,785,182 Transfer of capital surplus
recognised under previous
accounting system 20,474,592 - - 20,474,592 Others 1,654,903 21,217 - 1,676,120 5,007,077,158 21,217 (4,090,897) 5,003,007,478
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(42) Other comprehensive income
Other comprehensive income in the balance
sheet Other comprehensive income in income statement for the year ended 31 December 2017 Less: Amounts
Attributable previously recognised in Attributable to Attributable to to the parent Accruals before other comprehensive the parent minority 31 December company 31 December income tax in the income transferred out in Less: Income company after shareholders 2016 after tax 2017 current year the current year tax expenses tax after tax Other comprehensive income that will be
subsequently reclassified to profit or loss
Shares of other comprehensive income of the
inevestee accounted for using equity method
that will be subsequently reclassified to profit or
loss 21,753,244 - 21,753,244 - - - - - Gains or losses arising from changes in fair value
of available-for-sale financial assets 123,305,771 (8,057,492) 115,248,279 (10,743,323) - 2,685,831 (8,057,492) - 145,059,015 (8,057,492) 137,001,523 (10,743,323) - 2,685,831 (8,057,492) - Other comprehensive income in the balance
sheet Other comprehensive income in income statement for the year ended 31 December 2016 Less: Amounts
Attributable previously recognised in Attributable to Attributable to the parent Accruals before other comprehensive the parent to minority 31 December company 31 December income tax in the income transfer out in Less: Income company after shareholders 2015 after tax 2016 current year the current year tax expenses tax after tax Other comprehensive income that will be
subsequently reclassified to profit or loss
Shares of other comprehensive income of the
inevestee accounted for using equity method
that will be subsequently reclassified to profit or 22,192,308 (439,064) 21,753,244 (439,064) - - (439,064) -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) loss
Gains or losses arising from changes in fair value
of available-for-sale financial assets 223,516,407 (100,210,636) 123,305,771 (133,614,180) - 33,403,544 (100,210,636) - 245,708,715 (100,649,700) 145,059,015 (134,053,244) - 33,403,544 (100,649,700) -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(43) Surplus reserve
31 December Increase in the Decrease in the 31 December 2016 current year current year 2017 Statutory surplus reserve 2,428,747,208 212,960,545 - 2,641,707,753 Discretionary surplus
reserve 4,416,254,610 532,401,361 - 4,948,655,971 6,845,001,818 745,361,906 - 7,590,363,724 31 December Increase in the Decrease in the 31 December 2015 current year current year 2016 Statutory surplus reserve 2,133,658,624 295,088,584 - 2,428,747,208 Discretionary surplus
reserve 3,678,533,151 737,721,459 - 4,416,254,610 5,812,191,775 1,032,810,043 - 6,845,001,818 In accordance with the Company Law and theCompany’s Articles of Association, the Company should appropriate10% of net profit for the year to the statutory surplus reserve, and the Company can cease appropriation when the statutory surplus reserve accumulated to more than50% of the registered capital. The Company appropriates for the discretionary surplus reserve after theshareholders’ meeting approves the proposal from the Board of Directors. The surplus reserves can be used to cover the loss or increase the share capital upon approval.
According to the resolution at theshareholders’ meeting dated 7 May 2017, the Company appropriated10% of net profit for 2016, amounting to RMB 212,960,545 (2016:10% of net profit for 2015, amounting to RMB 295,088,584) to the statutory surplus reserves. Meanwhile, the Company appropriated25% of net profit for 2016, amounting to RMB 532,401,361 (2016:25% of net profit for 2015, amounting to RMB 737,721,459) to discretionary surplus reserves.
(44) Undistributed profits
2017 2016 Undistributed profits at the beginning of the year 6,135,494,928 7,439,335,347 Add: Net profit attributable to equity owners of the
company 743,180,431 936,534,941 Less: Appropriation to statutory surplus
Reserve (Note IV(43)) (212,960,545) (295,088,584) Appropriation to discretionary surplus
Reserve (Note IV(43)) (532,401,361) (737,721,459) Dividends payable on ordinary shares (a) (420,022,718) (1,207,565,317) Undistributed profits at end of year 5,713,290,735 6,135,494,928 (a) In accordance with the resolution at the Board ofShareholders’ meeting dated 7 May 2017, the Company proposed a cash dividend to the shareholders at RMB 0.8 per 10 shares, amounting to RMB 420,022,718 calculated by 5,250,283,986 issued shares.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(44) Undistributed profits(Cont’d)
(b) Undistributed profits at the end of the year
The surplus reserves attributable to the parent company appropriated by subsidiaries this year were RMB 102,706,924 (2016: RMB 170,679,326).
As at 31 December 2017, the undistributed profits attributable to the parent company included an appropriation of RMB 2,223,884,635 (31 December 2016: RMB 2,178,241,202) to surplus reserves made by theCompany’s subsidiaries.
(45) Revenue and cost of sales
2017 2016 Revenue from main operations 26,393,153,579 22,522,639,179 Revenue from other operations 250,638,478 158,480,843 26,643,792,057 22,681,120,022 2017 2016 Cost of sales from main operations 23,277,935,709 17,750,728,050 Cost of sales from other operations 14,352,960 42,898,332 23,292,288,669 17,793,626,382 (a) Revenue and cost of sales from main operations:
2017 2016
Revenue from Cost of sales from Revenue from Cost of sales from main operations main operations main operations main operations Revenue from sales of
electricity 26,250,079,293 23,156,713,366 22,342,322,648 17,642,493,659 Revenue from steam 93,907,579 77,158,338 69,753,251 53,336,133 Rendering of services 49,166,707 107,147,095 110,563,280 54,898,258 26,393,153,579 23,277,935,709 22,522,639,179 17,750,728,050
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(45) Revenue and cost of sales(Cont’d)
(b) Revenue and cost of sales from other operations
2017 2016
Revenue from Cost of sales from Revenue from Cost of sales from other operations other operations other operations other operations Revenue from integrated
utilisation of coal ash 203,698,123 8,004,336 65,549,708 17,272,560 Rental income 14,691,747 22,008 9,538,280 259,375 Revenue from sales of
materials 3,228,908 358,995 58,627,109 23,421,697 Revenue from sales of
certified emission
reduction (CER) - - 164,291 - Others 29,019,700 5,967,621 24,601,455 1,944,700 250,638,478 14,352,960 158,480,843 42,898,332 Information for revenue, cost of sales, and profit from main operating activities are included in segment reporting.
(46) Taxes and surcharges
2017 2016 Tax base City maintenance and construction tax 73,168,035 104,255,132 Note III Real estate tax 69,109,064 57,974,658 Note III Educational surcharge 58,982,876 87,152,497 Note III Land use tax 24,793,681 37,827,914
Stamp tax 17,479,308 10,275,621
Vehicle and vessel use tax 336,680 258,209
Business tax 2,800 1,388,194
Others - 558,741
243,872,444 299,690,966
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(47) General and administrative expenses
2017 2016 Labour cost 238,192,466 328,629,069 Labour insurance 47,896,800 58,979,822 Amortisation of intangible assets 53,133,360 52,578,628 Depreciation expenses (IV(11), IV(12)) 47,623,507 43,273,685 Fire safety expenses 40,578,207 42,250,964 Property management expenses 26,750,517 29,369,214 Agency fee 22,951,448 10,968,815 Office expenses 21,491,527 22,661,698 Sewage charges 21,401,263 21,729,363 Research and development expenses 16,980,873 15,362,442 Rental expenses 12,304,808 12,357,658 Afforestation fee 11,909,733 13,988,006 Traffic expenses 8,992,751 10,283,874 Maintenance cost 8,483,661 16,456,262 Labour costs 4,284,878 5,271,885 Travelling expenses 6,817,094 6,494,572 Entertainment expense 4,505,193 5,151,228 Insurance expenses 2,874,227 3,555,224 Expenses on board meetings 640,032 762,295 Embankment fee 578,439 8,451,791 Taxation - 18,086,180 Others 56,607,341 49,217,348 654,998,125 775,880,023
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(48) Financial expenses
2017 2016 Interest of debentures 93,130,000 120,893,956 Interest expenses 1,267,471,049 1,326,829,002 Less: Capitalised interest (115,040,638) (171,903,394) Sub-total of interest expenses 1,245,560,411 1,275,819,564 Interest expenses of discounted notes 14,534,341 34,408,880 Amortisation of long-term debentures (Note
IV(34)) 1,746,068 952,857 Less: Interest income (65,153,386) (68,416,457) Exchange (gains)/losses - net (4,702,846) 10,835,311 Amortisation of unrecognised finance charge 83,103,789 105,231,373 Bank charges and others 4,167,164 10,866,650 1,279,255,541 1,369,698,178
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(49) Asset impairment losses
2017 2016 Impairment losses of construction in progress 90,837,779 51,087,328 Impairment losses of fixed assets 29,483,080 707,243,955 Impairment losses of financial assets held for sale 25,010,686 - Bad debts provision 422,829 58,407 Reversal of decline in the value of inventories - (119,561) 145,754,374 758,270,129 (50) Investment income
2017 2016 Gains from long-term equity investments under
equity method 436,407,642 290,956,937 Investment income obtained from
available-for-sale financial assets during the
holding period 52,319,444 50,151,450 Others 359,463 256,276 489,086,549 341,364,663 The Group obtains returns from investment without any significant restrictions.
(51) Gains on disposals of assets
Amount recognised in non-recurring profit or loss 2017 2016 in 2017 Losses on disposal of fixed assets 4,720,404 3,723,321 4,720,404
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(52) Other income
Asset related/ 2017 2016 Income related Special fund of provincial
industrialisation and
informatisation development
(2017) for technological upgrading
of enterprises 18,595,400 - Income Revenue from timely levy and refund
of VAT 9,873,727 - Income Shajiao A5# generation set of
desulfurization project 3,076,923 - Assets Energy saving funds 2,873,723 - Assets Tax refund for PRC-made equipment 2,296,208 - Assets Subsidy from Bureau of Finance of
Huidong County for atmospheric
pollution control 2,000,000 - Income Others 12,156,841 - Assets and income 50,872,822 -
(53) Non-operating income
Amount recognised in non-recurring profit or loss 2017 2016 in 2017 Claims and compensation income 5,223,824 29,433,641 5,223,824 Exemptions of payables 688,329 38,770,319 688,329 Government grants inrrelevant to
ordinary activities (a) 345,500 27,389,745 345,500 Others 3,207,321 3,649,135 3,207,321 9,464,974 99,242,840 9,464,974
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(53) Non-operating income (Cont'd)
(a) Details of government grants
2017 2016 Government grants related to assets - 12,635,896 Other government grants related to assets and
directly recorded in income statement:
2015 incentive compensation for stable growth
of industry in Nansha 140,000 - Revenue from timely levy and refund of VAT - 8,219,325 Specific fund for energy conservation and
emission reduction - 3,455,583 Subsidy for spot power generation - 96,323 Others 205,500 2,982,618 345,500 27,389,745 (54) Non-operating expenses
Amount recognised in non-recurring profit or loss 2017 2016 in 2017 Penalty and overdue fine (a) 7,130,563 208,701,041 7,130,563 Others 2,761,811 4,423,160 2,761,811 9,892,374 213,124,201 9,892,374 (a) Penalty and overdue fine in 2016 mainly represents administrative penalty for subsidiary Pinghai Power. Since Pinghai Power implemented engineering and bank revetment project from August 2007 to June 2016 without permission, Administration of Ocean and Fisheries of Guangdong Province issued a penalty notice of approximately RMB 172,144,350 to Pinghai Power on 14 November 2016, recorded as non-operating expenses by the Group. As at 31 December 2017, Pinghai Power has appealed to Guangdong Higher People's Court, but the litigation outcome has not been determined. According to the Agreement on Purchase of Assets by Issuing Shares in 2012, Yudean promised that, for any loss incurred from potential significant litigation, arbitration, administrative penalties caused by activities of target company before settlement date and/or other events violating relevant laws and regulations that failed to be reflected in target asset prices and net assets value of the target company determined by specific audit at the settlement day, Yudean will make full cash compensation for the Company at the proportion of targetcompany’s equity that has been transferred to the Company in such transaction within 30 days after legally confirming the actual losses caused by such events. In accordance with the result of administrative reconsideration or litigation outcome, Yudean will compensate the Company based on the actual losses mentioned above. As at 31 December 2017, the Group could not confirm the amount of compensation to be received from Yudean, therefore the Group has not yet booked any receivables or income.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(55) Income tax expenses
2017 2016 Current income tax calculated based on tax law and related
regulations 495,956,673 822,940,083 Deferred income tax (79,467,357) (204,095,194) 416,489,316 618,844,889 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:
2017 2016 Total profit 1,554,210,475 1,904,907,160 Income tax calculated at applicable tax rates 388,552,619 476,226,790 Effect of preferential tax rates of subsidiaries (22,615,361) (10,421,387) Income not subject to tax (127,632,250) (88,678,565) Costs, expenses and losses not deductible for tax
purposes 13,494,284 91,186,106 Deductible losses for which no deferred tax asset was
recognised in current period 107,242,635 41,936,503 Temporary differences for which no deferred tax asset was
recognised in current period 54,279,872 52,134,316 Utilisation of deductible losses for which no deferred
income tax asset was recognised in previous periods - (626,778) Utilisation of deductible temporary differences for which no
deferred tax asset was recognised in previous periods (5,566,961) (11,273,674) Effect of other deductible expenses (4,301,326) - Tax filing differences of income tax in prior years 5,963,530 33,989,056 Repayment of income tax of tax inspection 7,072,274 34,372,522 Income tax expenses 416,489,316 618,844,889
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(56) Earnings per share
(a) Basic earnings per share
Basic earnings per share is calculated by dividing consolidated net profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding:
2017 2016 Consolidated net profit attributable to ordinary
shareholders of the parent company 743,180,431 936,534,941 Weighted average number of outstanding ordinary
shares of the Company 5,250,283,986 5,250,283,986 Basic earnings per share 0.14 0.18 Including:
- Basic earnings per share from continuing operations: 0.14 0.18 - Basic earnings per share from discontinued operations - - (b) Diluted earnings per share
Diluted earnings per share is calculated by dividing net profit attributable to ordinary shareholders of the Company adjusted based on the dilutive potential ordinary shares by the adjusted weighted average number of ordinary shares outstanding. In 2017, there were no dilutive potential ordinary shares (2016: Nil), and hence diluted earnings per share is equal to basic earnings per share.
(57) Expenses by nature
Cost of sales, taxes and surcharges, selling and distribution expenses, general and administrative expenses, financial expenses, and asset impairment losses in the income statement are classified below according to nature:
2017 2016 Consumed fuel and low value consumables, etc. 17,222,768,104 11,047,651,241 Depreciation and amortisation expenses 3,566,558,755 3,991,792,274 Employee benefits 1,672,491,580 1,844,417,629 Financial expenses 1,279,255,541 1,369,698,178 Repair expenses 902,064,084 970,267,291 Others 818,183,405 998,362,412 Impairment losses on non-current assets 145,331,545 758,331,283 Rental 17,740,135 19,452,535 25,624,393,149 20,999,972,843
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(58) Notes to the cash flow statement
(a) Cash received relating to other operating activities
2017 2016 Interest income 66,910,733 61,967,997 Government grants 59,495,276 70,933,827 Leasing income 13,425,844 9,538,280 Claims and compensation income 5,223,824 29,433,641 Others 4,241,150 3,649,135 149,296,827 175,522,880 (b) Other cash paid relating to operating activities
2017 2016 Insurance expenses 90,337,396 88,916,778 Sewage charges 64,746,917 62,109,458 Fire safety expenses 40,578,207 45,306,772 Traffic expenses 27,060,505 28,119,439 Property management expenses 26,750,517 45,238,089 Office expenses 25,371,981 31,935,916 Agency fee 22,951,448 10,968,815 Utility fees 21,248,782 22,928,170 Rental expenses 17,740,135 19,452,535 Union dues 17,500,027 19,792,653 Research and development expenses 16,980,873 15,362,442 Travelling expenses 11,512,096 11,748,240 Maintenance cost 8,483,661 16,456,262 Entertainment expense 5,830,761 5,177,418 Embankment fee 578,439 8,451,791 Others 89,067,896 44,804,516 486,739,641 476,769,294
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(58) Notes to the cash flow statement(Cont’d)
(c) Cash received relating to other financing activities
2017 2016 Income from odd lots 42,438 21,217 Amount from Yuecai Investment - 90,000,000 42,438 90,021,217 (59) 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
2017 2016 Net profit 1,137,721,159 1,286,062,271 Add: Provisions for asset impairment 145,754,374 758,270,129 Depreciation of fixed assets and
investment properties 3,499,814,726 3,936,810,582 Amortisation of intangible assets, long-term
prepaid expenses and deferred income 72,988,124 57,962,455 Losses on disposal of fixed assets,
intangible assets and other long-term
assets 4,720,404 3,723,321 Financial expenses 1,344,945,364 1,427,247,985 Investment income (489,086,549) (341,364,663) Increase in deferred tax (79,467,357) (203,813,125) Increase in inventories (14,481,532) (179,379,057) Increase in operating receivables (111,321,004) (446,056,749) (Decrease)/increase in operating payables (1,835,553,206) 2,405,312,669 Net cash flows from operating activities 3,676,034,503 8,704,775,818 Net increase/(decrease) in cash and cash equivalents
2017 2016 Cash at the end of the year 4,996,580,490 5,184,873,650 Less: Cash at the beginning of the year (5,184,873,650) (5,227,406,725) Net decrease in cash and cash equivalents (188,293,160) (42,533,075)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) IV Notes to the consolidated financial statements(Cont’d)
(59) Supplementary information to the cash flow statement(Cont’d)
(b) Cash and cash equivalents
31 December 2017 31 December 2016 Cash on hand 37,745 49,457 Cash at bank that can be readily drawn on demand 4,996,542,745 5,184,824,193 4,996,580,490 5,184,873,650 (60) Monetary items denominated in foreign currencies
31 December 2017
Balance in foreign
currencies Exchange rate Balance in RMB Cash at bank and on hand -
USD 190 6.5342 1,241 HKD 12,881 0.8359 10,767 12,008 Long-term borrowings -
USD 10,334,173 6.5342 67,525,556 EUR 765,397 7.8023 5,971,857 73,497,413 Current portion of non-current
liabilities -
USD 1,540,000 6.5342 10,062,668 EUR 314,641 7.8023 2,454,923 12,517,591 V Changes in consolidation scope
Subsidiaries established during the year:
Major
business Place of Nature of Shareholding Acquisition Name of subsidiaries location registration business Registered capital (%) method Tongdao Yuexin Wind Huaihua, Huaihua,
Power Co., Ltd. Hunan Hunan Electricity
(“Tongdao Company”) Province Province generation 10,000,000 100% Investment Xupu,
Hunan Xupu Yuefeng Huaihua, Huaihua,
New Energy Co., Ltd. Hunan Hunan Electricity
(“Xupu Yuefeng”) Province Province generation 20,000,000 100% Investment
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Guangxi Wuxuan
Yuefeng New Energy Wuxuan,
Co., Ltd.(“Wuxuan Guangxi Guangxi Electricity
Yuefeng”) Province Province generation 20,000,000 100% Investment Huizhou Pingdian
Comprehensive
Energy Co.,
Ltd.(“Pingdian Electricity
Comprehensive”) Huizhou Huizhou generation 20,000,000 45% Investment
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VI Interest in other entities
(1) Interest in subsidiaries
(a) Composition of the Group
Subsidiaries Major business location Place of registration Nature of business Shareholding(%) Acquisition method Direct Indirect
Maoming Zhenneng Maoming Maoming Electricity generation 66.61% - Investment Jinghai Power Jieyang Jieyang Electricity generation 65.00% - Investment Zhanjiang Wind Power Zhanjiang Zhanjiang Electricity generation 70.00% - Investment Guangdong Yudean Anxin Electric Inspection& Installation Co., Ltd. (“Anxin
Inspection”) Dongguan Dongguan Electricity generation100.00% - Investment Guangdong Yudean Humen Electric Co., Ltd. (“Humen Electric”) Dongguan Dongguan Electricity generation 60.00% - Investment Guangdong Yudean Bohe Coal Power Co., Ltd. (“Bohe Coal”) Maoming Maoming Electricity generation100.00% - Investment Business combinations involving Zhanjiang Yuheng Electric Co., Ltd. (“Yuheng Electric”) Zhanjiang Zhanjiang Electricity generation - 76.00% enterprises under common control Xuwen Wind Power Zhanjiang Zhanjiang Electricity generation - 70.00% Investment Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd. (“Huadu Natural
Gas”) Guangzhou Guangzhou Electricity generation 65.00% - Investment Guangdong Yudean Dabu Electric Co., Ltd. (“Dabu Electric”) Meizhou Meizhou Electricity generation100.00% - Investment Leizhou Wind Power Leizhou Leizhou Electricity generation 80.00% 14.00% 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 combination under common Yuejia Electric Meizhou Meizhou Electricity generation 58.00% - control Business combination under common Yuejiang Power Shaoguan Shaoguan Electricity generation 90.00% - control Business combination under common Zhongyue Energy Zhanjiang Zhanjiang Electricity generation 90.00% - control Yudean Power Sales Co., Ltd. (“Power Sales”) Guangzhou Guangzhou Electricity generation100.00% - Investment Qujie Power Zhanjiang Zhanjiang Electricity generation100.00% - Investment Yudean Yangjiang Offshore Wind Power Co., Ltd. (“Yangjiang Wind Power”) Yangjiang Yangjiang Electricity generation -100.00% Investment Business combinations involving Lincang Energy Lincang, Yunan Lincang Electricity generation100.00% enterprises not under common control
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Business combination under common Guangqian Electric Shenzhen Shenzhen Electricity generation100.00% - control Business combination under common Guangdong Huizhou Natural Gas Power Co., Ltd. (“Huizhou Natural Gas”) Huizhou Huizhou Electricity generation 67.00% - control Business combination under common Pinghai Power Huizhou Huizhou Electricity generation 45.00% - control Business combination under common Shibeishan Wind Power Jieyang Jieyang Electricity generation - 70.00% control Business combination under common Red Bay Power Shanwei Shanwei Electricity generation 65.00% - control Business combinations involving Guangdong Province Wind Power Co., Ltd. Guangzhou Guangzhou Electricity generation100.00% - enterprises not under common control Tongdao Yuexin Wind Power Co., Ltd. Huaihua, Hunan Huaihua Electricity generation100.00% Investment
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VI Interest in other entities (Cont'd)
(1) Interest in subsidiaries(Cont’d)
(a) Composition of the Group(Cont’d)
Nature of
Subsidiaries Major business location Place of registration business Shareholding(%) Acquisition method Direct Indirect
Electricity
Guangdong Yudean Pingyuan Wind Power Co., Ltd. (“Pingyuan Wind Power”) Meizhou Meizhou generation - 100.00% Investment Electricity
Guangdong Yudean Heping Wind Power Co., Ltd. (“Heping Wind Power”) Heyuan Heyuan generation - 100.00% Investment Business combinations involving Electricity enterprises not under common Huilai Wind Power Jieyang Jieyang generation - 70.00% control Guangdong Yuejiang Hongrui Power Technology Development Co., Ltd. (“Hongrui Electricity
Technology”) Shaoguan Shaoguan generation - 90.00% Investment Guangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd. (“Yongan Natural Electricity
gas”) Zhaoqing Zhaoqing generation 90.00% - Investment Electricity
Xupu Yuefeng Huaihua, Hunan Xupu, Huaihua, Hunan generation - 100.00% Investment Wuxuan, Guangxi Electricity
Wuxuan Yuefeng Guangxi Province Province generation - 100.00% Investment Electricity
Pinghai Comprehensive Huizhou Huizhou generation - 45.00% Investment (i) Pinghai Power was acquired from Yudean by the Group in 2012 through offering non-public shares. According to the agreement between Yudean and Guangdong Huaxia Electric Power Development Co., Ltd. (“Huaxia Electric”), which holds40% equity in Pinghai Power, the delegated shareholder and director from Huaxia Electric maintain consensus with those of Yudean when exercising their voting rights during theshareholders’ meeting and Board ofDirectors’ meeting at Pinghai Power; besides, after Yudean transfers its45% equity in Pinghai Power to the Company, the delegatedshareholder’s representative and director from Huaxia Electric also reach consensus with those of the Company when exercising their voting rights during theshareholders’ meeting and Board ofDirectors’ meeting at Pinghai Power. Therefore, the Company owns the control power over Pinghai Power.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) (ii) The voting rights proportions of the Company over its subsidiaries Zhanjiang Wind Power, Xuwen Wind Power, Leizhou Wind Power, Yuejia Electric and Shibeishan are60.00%,60.00%,60.00%,56.00% and60.00%, respectively. Since the proportions are determined based on relevant rules of thesesubsidiaries’ articles of association, theCompany’s voting proportion and shareholding percentage over the subsidiaries are inconsistent.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VI Interest in other entities (Cont'd)
(1) Interest in subsidiaries(Cont’d)
(b) Subsidiaries with significant minority interests
Shareholding of minority Gains and losses attributable to Dividends distributed to 31 December 2017 Minority Subsidiaries shareholders(%) minority shareholders in 2017 minority shareholders in 2017 interests Jinghai Power 35.00% 81,595,643 131,516,240 1,260,224,943 Zhanjiang Electric 24.00% 39,358,114 26,565,106 970,218,779 Huizhou Natural Gas 33.00% 68,801,281 60,955,686 577,956,273 Pinghai Power 55.00% 240,167,577 193,736,052 1,118,956,851 Red Bay 35.00% 83,391,817 65,318,134 1,164,274,223 The major financial information of the significant non-fully-owned subsidiaries of the Group is listed below:
31 December 2017 31 December 2016
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 Jinghai Power 1,220,230,956 8,519,603,527 9,739,834,483 2,649,314,880 3,489,876,908 6,139,191,788 1,040,862,549 8,869,631,166 9,910,493,715 1,945,979,818 4,221,240,924 6,167,220,742 Zhanjiang Electric 2,809,749,417 1,600,195,341 4,409,944,758 335,297,509 32,069,003 367,366,512 2,635,811,946 1,628,729,534 4,264,541,480 266,643,782 8,623,652 275,267,434 Huizhou Natural Gas 531,864,001 2,867,325,353 3,399,189,354 819,036,708 828,770,000 1,647,806,708 310,256,019 2,261,163,527 2,571,419,546 985,737,730 - 985,737,730 Pinghai Power 1,009,047,306 4,875,445,336 5,884,492,642 1,359,960,430 2,490,065,211 3,850,025,641 1,305,072,062 5,218,722,817 6,523,794,879 1,778,709,983 2,795,038,849 4,573,748,832 Red Bay 1,010,276,845 6,165,453,533 7,175,730,378 1,942,232,599 1,907,000,000 3,849,232,599 952,162,266 6,568,486,587 7,520,648,853 2,218,790,170 2,027,000,000 4,245,790,170 2017 2016
Total comprehensive Cash flows from Total comprehensive Cash flows from Revenue Net profit income operating activities Revenue Net profit income operating activities Jinghai Power 4,811,801,719 233,130,409 233,130,409 1,131,168,452 4,045,943,116 417,511,874 417,511,874 1,512,227,824
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Zhanjiang Electric 1,944,172,914 163,992,141 163,992,141 328,892,120 1,546,826,426 139,957,686 139,957,686 288,752,081 Huizhou Natural Gas 1,727,670,061 208,488,731 208,488,731 372,435,087 1,651,548,233 205,238,001 205,238,001 401,856,187 Pinghai Power 3,392,086,464 436,668,322 436,668,322 942,514,472 2,367,109,748 360,261,257 360,261,257 1,001,697,986 Red Bay 3,916,842,705 238,262,334 238,262,334 391,792,666 3,160,742,921 207,359,152 207,359,152 1,888,050,299
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VI Interest in other entities (Cont'd)
(2) Interests in joint ventures and associates
(a) Basic information of significant joint ventures and associates
Major business Place of Nature of Whether strategic to
location registration business the Group's activities Shareholding(%) Direct Indirect Joint venture
Industry fuel Guangzhou Guangzhou Fuel trade Yes 50.00% - Associates -
Yudean
Finance Guangzhou Guangzhou Finance Yes 25.00% - Taishan Power
Electric Taishan Taishan generation Yes 20.00% - The above equity investments are all measured using equity method by the Group.
(b) Summarised financial information of significant joint ventures:
31 December 2017 31 December 2016 Industry fuel Industry fuel Current assets 3,023,652,373 2,795,941,710 Including: Cash and cash equivalents 1,486,090,950 765,618,880 Non-current assets 238,031,473 243,947,673 Total assets 3,261,683,846 3,039,889,383 Current liabilities 2,049,097,586 1,870,177,206 Net assets 1,212,586,260 1,169,712,177 Attributable to equity owners of the company 1,212,586,260 1,169,712,177 Shares of net assets based on shareholding (i) 606,293,130 584,856,088 Adjustments (614,728) (614,728) Carrying value of equity investment in joint
venture 605,678,402 584,241,360 Revenue 20,866,250,505 14,358,128,349 Financial expenses 5,757,908 7,792,812 Income tax expenses (54,847,117) (42,865,045) Net profit 167,764,414 131,624,701
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Total comprehensive income 167,764,414 131,624,701 Dividends received from joint ventures by the
Group for the current year 59,231,115 79,989,336 (i) The Group calculates share of assets in proportion of the shareholdings based on the amount attributable to the parent company of joint ventures in their consolidated financial statements, which has taken into account impacts of both the fair value of the identifiable assets and liabilities of the joint ventures upon the acquisition of investments and accounting policy unifying.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VI Interest in other entities (Cont'd)
(2) Interests in joint ventures and associates
(c) Key financial information of significant associates
31 December 2017 31 December 2016
Yudean Finance Taishan Electric Yudean Finance Taishan Electric
Current assets 8,683,630,097 940,022,602 5,211,498,322 1,442,926,060
Non-current assets 13,100,038,881 13,059,475,755 11,831,239,639 13,558,011,862
Total assets 21,783,668,978 13,999,498,357 17,042,737,961 15,000,937,922
Current liabilities 19,034,164,167 2,890,641,148 14,425,370,556 5,147,444,203
Non-current liabilities - 1,300,500,000 - -
Total liabilities 19,034,164,167 4,191,141,148 14,425,370,556 5,147,444,203
Minority interests - 979,164 - 1,039,584
Attributable to equity
owners of the
company 2,749,504,811 9,807,378,045 2,617,367,405 9,852,454,135
Shares of net assets
based on
shareholding (i) 687,376,205 1,961,475,609 654,341,853 1,970,490,827
Adjustments
- Goodwill 13,325,000 - 13,325,000 -
Carrying value of
equity investments
in associates 700,701,205 1,961,475,609 667,666,853 1,970,490,827
Revenue 639,369,624 6,858,639,385 590,119,177 6,309,810,906
Net profit 301,317,539 596,418,401 227,377,359 1,030,668,936
Other comprehensive
income - (201,400) - (3,220)
Total comprehensive
income 301,317,539 596,217,001 227,377,359 1,030,665,716
Dividends received
from associates by
the Group for the
current year 42,295,033 95,281,354 59,406,856 306,239,183
(i) The Group calculates share of assets in proportion of the shareholdings based on the amount
attributable to the parent company of associates in their consolidated financial statements,
which has taken into account the impact of both the fair value of the identifiable net assets and
liabilities of the associate upon the acquisition of investment and accounting policy unifying.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VI Interest in other entities (Cont'd)
(2) Interests in joint ventures and associates(Cont’d)
(d) Information of immaterial associates is summarised as follows:
2017 2016 Associates:
Aggregate carrying value of investment 2,533,151,196 2,223,563,710 Aggregate amount based on shareholding
Net profit/(loss) (i) 194,143,964 (905,554) Other comprehensive income (i) - (439,064) Total comprehensive income 194,143,964 (1,344,618) (i) The net profit and other comprehensive income have taken into account the impacts of both the fair value of the identifiable assets and liabilities upon the acquisition of investment and accounting policies unifying. VII Segment information
The reportable segments of the Group are the business units that provide different products or service, or operate in the different areas. Different businesses or areas require different technologies and marketing strategies, the Group, therefore, separately manages the production and operation of each reportable segment and evaluates their operating results respectively, in order to make decisions about resources to be allocated to these segments and to assess their performance.
The Group possesses 8 reportable segments, in charge of power generating and selling in different regions in Guangdong Province.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are allocated based on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the segments based on the proportion of eachsegment’s revenue.
For the purposes of assessing segment performance and distributing resources among segments, theGroup’s management regularly reviews assets, liabilities, income, expenses and business performance attributable to each reportable segment on the following bases:
Segment assets include all tangible assets, intangible assets, other long-term assets and current assets like accounts receivable, with the exception of deferred tax assets and other unallocated corporate assets. Segment liabilities include payables and advances, bank borrowings and interest payable, long-term and short-term debentures and dividends payable attributable to the individual segments, but exclude deferred tax liabilities.
Segment financial performance represents operating income (including trading revenues from external customers and inter-segment), deducting expenses, depreciation, amortisation and impairment losses attributable to the individual segments, and interest income and expense from cash balances and borrowings directly attributable to one of the segments. The calculation of pricing among inter-segments is determined with reference to similar terms for external parties.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VII Segment information(Cont’d)
(a) Segment information as at and for the year ended 31 December 2017 is as follows:
Maoming Zhanjiang Zhongyue
The Company Jinghai Power Pinghai Power Red Bay Zhenneng Electric Energy Others Elimination Total Revenue from external
customers 2,117,444,166 4,811,801,719 3,392,086,464 3,916,842,705 1,606,408,261 1,938,695,991 1,289,553,459 7,570,959,292 - 26,643,792,057 Inter-segment revenue 55,725 - - - - 5,476,923 - 105,915,559 (111,448,207) - Cost of sales from main
operations (2,014,615,189) (4,159,809,344) (2,594,540,505) (3,344,808,620) (1,609,917,306) (1,700,604,512) (1,353,391,795) (6,626,133,789) 125,885,351 (23,277,935,709) Interest income 4,215,500 1,301,144 4,647,642 2,223,345 1,085,577 21,691,173 5,932,507 24,056,498 - 65,153,386 Interest expenses (199,610,835) (217,463,086) (130,480,952) (133,675,087) (71,293,749) - (128,253,251) (403,911,839) 39,128,388 (1,245,560,411) Investment income from
associates and joint
ventures 430,233,196 - - - - - - 6,174,446 - 436,407,642 Asset impairment losses (673,578,111) - - (438,532) - (15,137,474) (12,990,036) (92,177,648) 648,567,427 (145,754,374) Depreciation and
amortisation expenses (126,140,089) (683,130,808) (388,880,201) (539,874,860) (203,959,542) (155,323,006) (280,559,563) (1,207,732,543) 19,041,857 (3,566,558,755) Total profit 644,885,699 305,415,844 595,737,707 318,743,687 (126,843,762) 221,664,415 (251,416,610) 202,489,174 (356,465,679) 1,554,210,475 Income tax expenses 51,661,211 (72,285,435) (159,069,385) (80,481,353) 32,510,738 (57,672,274) 28,865,939 (156,286,172) (3,732,585) (416,489,316) Net profit 696,546,910 233,130,409 436,668,322 238,262,334 (94,333,024) 163,992,141 (222,550,671) 46,203,002 (360,198,264) 1,137,721,159 Total assets 27,497,912,825 9,739,834,483 5,884,492,642 7,175,730,378 3,078,550,795 4,409,944,758 4,946,405,691 29,750,996,883 (21,476,453,132) 71,007,415,323 Total liabilities 4,954,412,031 6,139,191,788 3,850,025,641 3,849,232,599 2,102,558,428 367,366,512 3,908,964,964 19,511,142,287 (3,378,338,940) 41,304,555,310 Non-cash expenses other
than depreciation and
amortisation - - - - - - - - - - Long-term equity investments
in associates and joint
ventures 5,738,255,738 - - - - - - 62,750,674 - 5,801,006,412
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Addition of non-current
assets (i) (234,867,651) (350,027,639) (343,277,481) (403,033,054) (67,918,141) (28,534,193) (393,861,476) 914,217,148 871,828,226 (35,474,261) (i) Non-current assets do not include financial instruments, long-term equity investments, and deferred tax assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VII Segment information(Cont’d)
(b) Segment information as at and for the year ended 31 December 2016 is as follows:
Maoming Zhanjiang Zhongyue
The Company Jinghai Power Pinghai Power Red Bay Zhenneng Electric Energy Others Elimination Total Revenue from external
customers 2,029,821,268 4,045,943,116 2,367,109,748 3,160,742,921 1,385,525,272 1,538,339,761 1,305,549,969 6,848,087,967 - 22,681,120,022 Inter-segment revenue 55,762 - - - - 8,486,665 - 32,909,529 (41,451,956) - Cost of sales from main
operations (1,632,941,869) (3,023,351,550) (1,604,469,871) (2,399,446,338) (1,193,440,593) (1,206,167,130) (1,186,585,047) (5,544,180,279) 39,854,627 (17,750,728,050) Interest income 8,853,201 2,094,821 5,568,834 1,489,845 1,629,421 23,127,292 2,094,821 23,558,222 - 68,416,457 Interest expenses (216,357,055) (248,817,575) (162,136,215) (158,084,166) (75,032,498) - (150,435,110) (439,602,790) 31,511,587 (1,418,953,822) Investment income from
associates and joint
ventures 286,517,653 - - - - - - 4,439,284 - 290,956,937 Asset impairment losses (85,722,207) (71,082,445) - (185,046,826) (48,399,956) (99,763,144) (214,553,161) (87,566,487) 33,864,097 (758,270,129) Depreciation and
amortisation expenses (149,374,830) (803,991,479) (386,898,704) (673,876,429) (241,085,512) (195,148,839) (336,546,850) (1,204,956,182) 86,551 (3,991,792,274) Total profit 294,389,329 577,512,708 514,056,212 302,217,187 24,547,127 212,472,632 (285,414,662) 491,863,910 (226,737,283) 1,904,907,160 Income tax expenses (14,527,156) (160,000,834) (153,794,955) (94,858,035) (6,915,095) (72,514,946) 71,358,724 (186,786,816) (805,776) (618,844,889) Net profit 279,862,173 417,511,874 360,261,257 207,359,152 17,632,032 139,957,686 (214,055,938) 305,077,094 (227,543,059) 1,286,062,271 Total assets 9,768,752,508 9,891,480,438 6,523,794,879 7,457,579,958 3,055,176,239 4,223,302,053 4,894,482,366 26,940,628,694 (2,078,193,375) 70,677,003,760 Total liabilities 5,007,337,148 6,167,220,742 4,573,748,832 4,245,790,170 1,968,982,019 275,267,434 3,702,319,250 17,210,337,616 (1,810,564,213) 41,340,438,998 Non-cash expenses other
than depreciation and
amortisation - - - - - - - - - - Long-term equity investments
in associates and joint
ventures 5,370,651,524 - - - - - - 61,986,226 - 5,432,637,750 Increase in non-current 284,348,299 (757,579,689) (380,373,632) (934,438,547) (256,965,509) (229,237,976) (604,436,296) 2,960,112,249 (1,442,693,689) (1,361,264,790)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) assets (i)
(i) Non-current assets do not include financial instruments, long-term equity investments, and deferred tax assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VII Segment information(Cont’d)
(c) Geographical information
TheGroup’s operating income derives from the development and operation of electric plants in China and all assets are within China.
(d) Major customers
In 2017, the revenue from GPGC and its subsidiaries was RMB 26,250,079,293 (2016: RMB 22,342,322,648), which took up98.52% of theGroup’s operating income (2016:98.51%).
VIII Related parties and related party transactions
(1) 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 plant and Yudean Guangzhou sales of electricity Ultimate holding party of the Company is State-owned Assets Supervision And Administration Commission of the People's Government of Guangdong Province.
(b) Registered capital and changes in registered capital of the parent company
31 December Increase in the Decrease in the 31 December 2016 current year current year 2017 Yudean 23,000,000,000 - - 23,000,000,000 (c) The percentages of shareholding and voting rights in the Company held by the parent company
31 December 2017 31 December 2016
Shareholding
Shareholding(%) Voting rights(%) (%) Voting rights(%) Yudean 67.39% 67.39% 67.39% 67.39% (2) Information of subsidiaries
The general information and other related information of the subsidiaries are set out in Note VI(1)(a).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VIII Related parties and related party transactions(Cont’d)
(3) Information of joint ventures and associates
Apart from material joint ventures and associates disclosed in Note VI, other joint ventures and associates that involved in related party transactions with the Company are listed as follows:
Name of the Company Relationship with the Group Yudean Shipping Associate (4) Information of other related parties
Relationship with the Group Maoming Thermal Controlled by Yudean Shaoguan Electric Power Plant Controlled by Yudean Shajiao C Controlled by Yudean Guangdong Yudean Hydroelectric Power Plant (“Xinfengjiang Electric
Service”) Controlled by Yudean Guangdong Province Zhuhai Power Generation Co., Ltd. (“Zhuhai
Electric”) Controlled by Yudean Guangdong Zhuhai Jinwan Power Co., Ltd. (“Zhuhai Jinwan Electric”) Controlled by Yudean Guangdong Yudean Property Management Co., Ltd. (“Yudean PM”) Controlled by Yudean Guangdong Yudean Information Technology Co., Ltd. (“Yudean
Technology”) Controlled by Yudean Guangdong Yudean Property Investment Co., Ltd. (“Yudean PI”) Controlled by Yudean Zhuhai Grand Power Energy Development Co., Ltd. (“Zhuhai Grand
Power”) Controlled by Yudean Yudean Environmental Controlled by Yudean Shenzhen Tianxin Insurance Brokers Co., Ltd. (“Shenzhen Tianxin”) Controlled by Yudean Guangzhou Huangpu Power Engineering Co., Ltd. (“Huangpu Power
Engineering”) Controlled by Yudean Guangzhou Huangpu Yuehua Power Plant Human Resources Co., Ltd.
(“Huangpu Yuehua Human Resources”) Controlled by Yudean
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VIII Related parties and related party transactions(Cont’d)
(4) Information of other related parties (Cont'd)
Relationship with the Group Inner Mongolia Yudean Menghua New Energy Co., Ltd.
(“Menghua New Energy”) Controlled by Yudean Guangdong Yuehua Power Co., Ltd. (“Yuehua Power”) Controlled by Yudean Guangdong Yudean Yunhe Power Co., Ltd. (“Yunhe Power”) Controlled by Yudean Guangdong Yuelong Power Generation Co., Ltd. (“Yuelong Power”) Controlled by Yudean Guangdong Yudean Zhongshan Thermal Power Plant (“Zhongshan
Thermal”) Controlled by Yudean Guangdong Port of Yangjiang Harbour Service Co., Ltd. (“Port of
Yangjiang”) Controlled by Yudean Guangzhou Development District Yudean New Energy Co., Ltd.
(“Yudean New Energy”) Controlled by Yudean Guangdong Guanghe Power Co., Ltd. (“Guanghe Power”) Controlled by Yudean Guangdong Xinhui Power Generation Co., Ltd. (“Xinhui Power”) Controlled by Yudean Guangdong Yudean Natural Gas Co., Ltd. (“Yudean Natural Gas”) Controlled by Yudean Controlled by Yudean (5) Related party transactions
(a) Purchase and sales of goods, and provision and receipt of service
Purchase of goods and receipt of services:
Pricing policy of
Type of related party related party
Related parties transaction transaction 2017 2016 Industry fuel Purchase of fuel Agreement price 14,389,960,951 7,256,425,415 Yudean Natural Gas Purchase of fuel Agreement price 260,827,167 - YUDEAN Purchase of materials Agreement price
ENVIRONMENTAL 118,654,832 90,943,208 Yudean PM Receipt of property services Agreement price 31,553,554 28,971,851 Yudean Shipping Receipt of tug services Agreement price 24,720,000 23,401,132 Huangpu Yuehua Receipt of human resource Agreement price
Human outsourcing services
Resources 14,570,164 3,705,387 Huangpu Power Receipt of maintenance and Agreement price
Engineering repair services 11,533,589 11,818,622 Port of Yangjiang Receipt of tug services Agreement price 8,029,908 7,648,589 Yudean Technology Distribution service fee Agreement price 2,864,767 2,322,018 Maoming Thermal Receipt of leasing services Agreement price 2,724,380 - Yunhe Power Distribution service fee Agreement price 1,548,428 - Zhuhai Jinwan Distribution service fee Agreement price
Electric 206,533 - Zhuhai Grand Power Purchase of equipment Agreement price - 635,598 14,867,194,273 7,435,017,977
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VIII Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(a) Purchase and sales of goods, and provision and receipt of service(Cont’d)
Sales of goods and provision of services:
Pricing policy
Type of related party of related party
Related parties transaction transaction 2017 2016 YUDEAN Revenue from sales of Agreement
ENVIRONMENTAL by-products price 158,181,213 104,804,428 Provision of maintenance and Agreement
Shajiao C repair services price 33,858,057 49,180,735 Agreement
Yunhe Power Income from transferring coal price 14,676,471 - Provision of maintenance and Agreement
Yunhe Power repair services price 8,377,100 11,948,718 Electricity income from Agreement
Zhuhai Jinwan Electric deviation assessment price 4,208,214 - Electricity income from Agreement
Yunhe Power deviation assessment price 3,205,702 - Agreement
Yuehua Power Provision for training service price 2,175,049 - Electricity income from Agreement
Guanghe Power deviation assessment price 1,868,165 - Agreement
Xinhui Power Provision for training service price 1,456,767 - Electricity income from Agreement
Yuelong Power deviation assessment price 788,661 - Provision of maintenance and Agreement
Yudean New Energy repair services price 651,395 - Electricity income from Agreement
Yuehua Power deviation assessment price 129,932 - Provision of maintenance and Agreement
Zhuhai Jinwan Electric repair services price 126,904 4,332,129 Provision of consulting Agreement
Menghua New Energe services price 308,871 - Agreement
Zhongshan Thermal Provision of training services price - 169,660 Huangpu Power Provision of maintenance and Agreement
Engineering repair services price - 83,499 230,012,501 170,519,169 (b) Purchase of electric power
Related parties 2017 2016 Zhuhai Jinwan Electric 55,868,421 7,260,000 Yunhe Power 37,018,286 3,630,000
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Guanghe Power 25,568,631 5,989,500 Yuelong Power 8,427,938 - Yuehua Power 1,318,520
128,201,796 21,598,500 The amount of purchase for 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.
VIII Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(c) Leases
The Group as the lessee:
Leasing payment Leasing payment recognised in Name of lessor Type of leased assets recognised in 2017 2016 YudeanPI* Housing rental 8,293,375 7,043,724 Maoming Thermal Land rental 1,043,884 1,068,452 YudeanPI* Billboard rental 760,686 798,720 Maoming Thermal Housing rental 148,005 155,405 Shaoguan Electric Power Plant Housing rental - 43,700 Yuehua Power Housing rental 25,826 36,156 Shaoguan Electric Power Plant Equipment rental - 12,000 10,271,776 9,158,157* The above contracts will be updated every year and they have been renewed on 1 January 2018.
The Group as the lessor:
Leasing income Leasing income recognised in Name of lessee Type of leased assets recognised in 2017 2016 Shajiao C Housing rental 195,524 - (d) Guarantee
The Group as the guaranteed party
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Guaranteed Whether the guarantee Guarantor amount Starting date Maturity date has been fulfilled or not Yudean 1,500,000,000 14/08/2013 13/08/2022 No
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VIII Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(d()e )F und Lending among related parties
(i) According to the 2017 Framework Agreement on Financial Services between the Company and Yudean Finance, Yudean Finance is committed to offering the Group a credit line of less than RMB 17,000,000,000 in 2017. In 2017, the Group borrowed a total of RMB 8,468,213,230 (2016: RMB 5,400,090,000) from Yudean Finance based on actual capital requirement. The Group paid an interest of RMB 297,702,035 (2016: RMB 281,054,753) for such borrowing (Note VIII(5)(j)).
(ii) In 2017, the net amount of theGroup’s deposits in Yudean Finance increased by RMB 646,703,288 (2016: a net increase of RMB 351,400,189). Interests due from Yudean Finance amounted to RMB 60,170,777 (2016: RMB 62,372,555). In light of the frequent deposits and withdrawals, the Group only disclosed the amount of net change in deposits.
(iii) As disclosed in Note IV(23), according to the three-party agreement signed among the Group, Yudean Finance and Industry Fuel, the amount of the notes issued to Industry Fuel by the Group and discounted with Yudean Finance represents the amount payable to Yudean Finance. Given the frequent transactions, only the net change of the balance of commercial acceptance notes discounted with Yudean Finance as at 31 December is disclosed. As at 31 December 2017, the net amount of YudeanFinance’s discounting of acceptance notes issued by the Group to Industry Fuel increased by RMB 617,458,278. In 2017, the discounting interest charged by Yudean Finance and borne by the Group which was included in the discounting interest expenses in the year amounted to RMB 13,638,031.
(iv) Transactions between the Company and its subsidiaries
In 2017, the net increase in non-secured loans borrowed by the Company from its subsidiaries was RMB 800,000,000 (2016: net decrease of RMB 600,000,000) with an annual interest rate of3.92% (2016: from4.14% to5.32%). An interest expense of RMB 37,916,159 (2016: RMB 34,809,951) was recognised. The balance of borrowings at the end of 2017 was RMB 1,100,000,000 (2016: RMB 300,000,000). The Company only discloses the net change in loan of capital with its subsidiaries due to the frequent transaction of funds. In 2017, the net decrease in non-secured loans provided by the Company to its subsidiaries was RMB 33,540,000 (2016: net decrease of RMB 35,000,000) with an annual interest rate from4.75% to4.99% (2016:4.41% to4.75%). An interest income of RMB 17,784,373 (2016: RMB 21,556,285) was recognised. The balance of borrowings at the end of 2017 was RMB 401,460,000 (2016: RMB 435,000,000). The Company only disclosed the net change in loan of capital with its subsidiaries due to the frequent transaction of funds.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VIII Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(f) Payment by related parties on behalf of the Group
2017 2016 Shaoguan Electric Power Plant 613,807 10,974,060 (g) Purchase of small thermal generator unit capacity
In 2017, the Group did not involve in any related party transaction related to purchase of small thermal generator unit capacity.
2016
Related party % of similar Purchaser Seller transactions Pricing principle Amount transaction Purchase of small
thermal generator unit
Jinghai PowerYuehua Power capacity Agreement price 10,000,000 100% (h) Allocation of common expenses
TheCompany’s branches Shajiao A and Shajiao C agreed to share common expenses based on their agreed allocation percentage. In 2017, the common expenses received by the Group from Shajiao C was RMB 2,642,602 (2016: RMB 2,968,411).
(i) Interest income
2017 2016 Interest on deposits paid by Yudean Finance 60,170,777 62,372,555 Percentage of interest income 92.35% 91.17% (j) Interest expenses
2017 2016 Interest on borrowings paid to Yudean Finance 297,702,035 281,054,753 Notes discounting interest paid to Yudean
Finance 13,638,031 20,564,233 311,340,066 301,618,986 Percentage of interest expenses 20.76% 18.99%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) In 2017, the loans provided by Yudean Finance to the Group carry an annual interest rate from3.92% to4.53% (2016: from3.92% to5.31%).
VIII Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(k) Joint investment
As at 31 December 2017, co-invested subsidiaries, joint ventures, and associates between the Group and Yudean were listed below:
Percentage of equity attributable to Yudean Yudean Finance 65% Industry Fuel 50% Shanxi Yudean Energy 60% Yudean Property Self-Insurance 49% Western Investment 35% (l) Transfer of asset
Type of related party
Related party transaction Pricing principle 2017 2016 Purchase of small
Yuehua thermal generator unit
Power capacity Agreement price - 10,000,000 (m) Remuneration of key management
2017 2016 Remuneration of key management 3,859,328 4,154,624
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VIII Related parties and related party transactions(Cont’d)
(6) Receivables from and payables to related parties
Receivables from related parties:
31 December 2017 31 December 2016
Provision for Provision for Ending balance bad debts Ending balance bad debts Cash at bank and
on hand Yudean Finance 4,152,300,806 - 4,799,004,094 - Accounts
receivable Shajiao C 13,185,631 - 26,500,702 - Zhuhai Jinwan
Electric 4,923,611 - 2,599,915 - Yunhe Power 2,526,785 - 3,511,430 - Yudean New Energy 762,132 - - - Guanghe Power 35,177 - - - Yuelong Power 15,550 - 2,502,752 - Zhuhai Electric - - 279,747 - 21,448,886 - 35,394,546 - YUDEAN
Other receivables ENVIRONMENTAL 136,540,065 - 66,823,439 - Yudean PI 1,274,519 - 1,134,699 - Yudean PM 413,282 - 367,626 - Shajiao C 253,097 - 305,995 - Menghua New
Energy 241,844 - 16,320 - 138,722,807 - 68,648,079 - 31 December 2017 31 December 2016
Provision for Provision for Ending balance bad debts Ending balance bad debts Interest receivable Yudean Finance 14,923,771 - 16,640,918 - Advances to
suppliers Industry Fuel 589,294,868 - 911,360,683 - Payables to related parties
31 December 2017 31 December 2016 Accounts payable Industry Fuel 1,463,573,252 2,172,819,322 Maoming Thermal 89,461,265 89,461,265 YUDEAN ENVIRONMENTAL 62,871,339 50,170,970
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Huangpu Power Engineering 3,335,568 91,283 Yunhe Power 1,006,553 - Huangpu Yuehua Human Resources 566,250 - Zhuhai Jinwan Electric 218,925 - Yudean Technology 68,000 702,577 Zhuhai Grand Power 37,183 - Yuelong Power 34,071 66,818 Yudean Shipping - 3,660,000 1,621,172,406 2,316,972,235
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VIII 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 2017 31 December 2016 Other payables Shaoguan Electric Power
Plant 11,024,853 10,974,060 Huangpu Power
Engineering 2,451,285 7,866,983 Yudean PM 5,300,494 4,864,696 Maoming Thermal 7,187,525 4,000,000 Yudean Shipping 4,280,000 3,660,000 Huangpu Yuehua Human
Resources 1,701,219 2,209,375 Yudean PI 1,360,639 1,051,099 Yudean Technology 1,028,740 112,500 YUDEAN
ENVIRONMENTAL 631,264 1,084,284 Shenzhen Tianxin 70,000 70,000 Zhuhai Grand Power - 37,183 35,036,019 35,930,180 31 December 2017 31 December 2016 Interest payable Yudean Finance 10,451,874 67,537,822 Notes payable Industry Fuel 67,611,800 50,000,000 Yudean Finance 230,000,000 847,458,278 297,611,800 897,458,278 Short-term
borrowings Yudean Finance 5,637,000,000 3,710,000,000 Current portion of
non-current
liabilities Yudean Finance 191,763,707 267,331,709 Long-term
borrowings Yudean Finance 2,533,388,877 2,040,222,573 Part of information on short-term borrowings and long-term borrowings obtained from related parties is disclosed in Notes IV(22), IV(31), IV(33); details on notes payable discounted by Yudean Finance is disclosed in Note IV(23). Except for the aforesaid borrowings and notes payable, other receivables from and payables to related parties are interest-free and unsecured current accounts that will be paid off when needed.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) VIII Related parties and related party transactions(Cont’d)
(7) Commitments in relation to related parties
Leases
31 December 2017 31 December 2016 - Lessee
Maoming Thermal 23,920,348 25,054,634 Yudean PI 8,264,642 6,974,129 32,184,990 32,028,763 (8) Investment commitments
As at 31 December 2017, the Group did not make any investment commitments with related parties.
IX Contingencies
As at 31 December 2017, the Company provided joint guarantee for bank borrowings amounting to RMB 122,670,000 for Yunnan Baoshan Binlangjiang Hydroelectricity Development Co Ltd., of which the liability relief procedure is being handled.
As at 31 December 2017, the Company provided joint guarantee for bank borrowings from European Investment Bank amounting to RMB 77,588,224 for Zhanjiang Wind Power (Note IV (33)(a)(iv)); and the Company provided joint guarantee for bank borrowings amounting to RMB 92,000,000 (Note IV(33)(c)) for Yuejiang Power, based on the percentage of equity owned in Yuejiang Power.
X 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 2017 31 December 2016 Buildings and power generation equipment 4,974,441,491 7,748,261,014 The above capital commitments will be primarily used for the construction of new electric plants and the purchase of new generator units.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) X Commitments(Cont’d)
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts are summarised as follows:
31 December 2017 31 December 2016 Within 1 year 8,721,054 6,356,203 1 to 2 years 6,569,416 2,484,753 2 to 3 years 4,000,026 1,787,713 Over 3 years 30,360,476 30,902,928 49,650,972 41,531,597 (3) Implementation of prior commitments
(a) The Eighth Session of the Board passed the Proposal of Establishment of Dagaoshan Wind Power Project Company in Dong Autonomous County of Tongdao in Hunan Province during its 14th meeting on 28 October 2016. To propel the preliminary work of the Hunan Dagaoshan Wind Power project and develop and extend wind power in Hunan Province, the board agreed to establish solely-owned “Dagaoshan Wind Power Project Company” in charge of investment, development and construction of the Dagaoshan Wind Power project. The initial contribution of the registration capital was tentatively set as RMB 10,000,000, and the remaining capital will be injected at proper time according to the approval of the project and the construction plan deliberated and approved by the board of directors. According to the notice of pre-approval on corporate name, the Dagaoshan Wind Power project is granted with a corporate name, Tongdao Yuexin Wind Power Co., Ltd. As at 31 December 2017, the Company did not make capital contribution.
(b) The Seventh Session of the Board passed the Proposal of Capital Injection in Guangdong Yudean Bohe Coal Power Co., Ltd. during its 11th meeting on 29 October 2012, pursuant to which the Company agreed to inject RMB 854,570,000 in cash to Bohe Coal for the construction of terminal project. The injection would be made in batches based on the capital requirement of the project. On 22 August 2013, the Seventh Session of the Board passed the Proposal of Invest to Establish Guangdong Maoming Bohe Electric Power Generation Project during its 15th meeting, pursuant to which the Company agreed to inject RMB 1,375,000,000 to Bohe Coal for the construction of Bohe electric plant. The injection of the initial capital of Bohe Coal of RMB 285,000,000 was completed. The subsequent injection of RMB 1,090,000,000 will be made in batches based on the capital requirement of the project. The aforesaid capital commitment is totalled at RMB 2,229,570,000. As at 31 December 2017, the Company injected RMB 2,229,000,000 to Bohe Coal.
(c) The Eighth Session of the Board passed the Proposal of Capital Injection in Guangdong Shaoguan Yuejiang Electric Power Co., Ltd. during its 2nd meeting on 24 August 2014, pursuant to which the Company is required to inject RMB 923,000,000(20% of the total project investment) on its90% shareholding proportion to promote the Upgrade Project(2×600MW) of Shaoguan Power invested by Yuejiang Electric, namely, to offer supplementary capital injection of RMB 232,310,000 on the basis of the initial injection of RMB 690,690,000 approved during 11th meeting of The Sixth Session of the Board in 2010. As at 31 December 2017, the Company has completed the cumulative capital injection.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) X Commitments(Cont’d)
(3) Implementation of prior commitments(Cont’d)
(d) The Eighth Session of the Board passed the Proposal of Establishment of Guangdong Yudean Property Self-Insurance Co., Ltd. during its 9th meeting on 12 November 2015. In order to enhance theCompany’s capability of managing quantitative risks and insurance, the board agreed to establish Guangdong Yudean Property Self-Insurance Co., Ltd. with Yudean, the controlling shareholders, in which the Company contributed RMB147,000,000 and accounted for49% of the equity. As at 31 December 2017, the Company had injected a registered capital of RMB 147,000,000 to Guangdong Yudean Property Self-Insurance Co., Ltd., thus the accumulated capital injection was completed by the Company.
(e) The Eighth Session of the Board passed the Proposal of Investment in the Establishment of2×400MW Fuel Gas - Steam Thermal Power Cogeneration Project in Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd. during its 15th meeting dated 24 April 2017. To promote the subsequent development of natural gas thermal power project in Huadu, the Company is required to inject a total capital of RMB 467,110,800 to Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd. based on its shareholding proportion of65% in this company. In addition to the whole capital injected since the incorporation of the project company, the Company still need to inject another RMB 369,610,800. As at 31 December 2017, the Company had injected RMB 89,050,000, and the accumulated injection of capital was RMB 186,550,000.
(f) The Seventh Session of the Board passed the Proposal of Investment in Phase II Thermal Power Cogeneration Project of Huizhou LNG Electric during its 14th meeting in April 2013. According to the proposal, the Board permits the Company to invest in Phase II Thermal Power Cogeneration Project of Huizhou LNG Electric with the contribution ratio of67%. The capital is about RMB 569,000,000 in total, which will be made in batches based on the project progress and capital requirement. The Company injected RMB 42,670,000 and RMB 52,330,000 respectively in September and December 2017.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XI Events after the balance sheet date
(1) According to the requirement of Retirement of Shajiao Power Plant and Construction work of alternative power source([2018] No.578) by Guangdong Development and Reform Commission on 7 February 2018, all ten generator units of Shajiao power plant should be gradually retired by the end of 2025. Meantime, the alternative power source should be implemented in appropriate district, and related transformation of power network and staff resettlement should be well prepared. Based on the correspondence, theCompany’s Shajiao A should shut off all five generator units before 2023, including1# generator units shut off by 2019,2# and3# generator units shut off by 2020,4# and5# generator units shut off by 2023. As at 31 December 2017, the carrying value of long-term assets of Shajiao A related to retired generator unis amounting to nearly RMB 1,100,000,000. Up to the issruance date of the finanancial statement, proposals of implementation of retirement, construction of alternative power source, corresponding transformation of power network and staff resettlement, land development and other concerns are still in the process of research. Management are unable to reasonably estimate the influence on theGroup’s future financial conditions, business performance and cash flow.
(2) According to a resolution of the Board of Directors (“BOD”) dated 26 April 2017, the BOD suggested that the Group appropriate statutory surplus reserve of RMB 69,654,691, representing10% of net profit, and discretionary surplus reserve of RMB 174,136,728, representing25% of net profit (2016: statutory surplus reserve of RMB 212,960,545 and discretionary surplus reserve of RMB 532,401,361); furthermore, the BOD suggested that the Group distribute cash dividends to shareholders at the rate of RMB 0.8 for every 10 shares, amounting to a total of RMB 420,022,719 (2016: RMB 0.8 for every 10 shares for shareholders, with a total amount of RMB 420,022,719). This proposal is still to be approved by the general meeting of shareholders. The distribution of cash dividends proposed subsequent to the balance sheet date was not recognised as liabilities at the balance sheet date.
XII Financial risk
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
TheGroup’s major operational activities are carried out in Mainland China and a majority of the transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from the recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect to US dollars. TheGroup’s finance department at its headquarters is responsible for monitoring the amount of assets and liabilities, and transactions denominated in foreign currencies in order to reduce foreign exchange risk to the greatest extent. Therefore, the Group may consider adopt proper ways to mitigate the foreign exchange risk. During 2017 and 2016, the Group did not enter into any forward exchange contracts or currency swap contracts.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XII Financial risk(Cont’d)
(1) Market risk(Cont’d)
(a) Foreign exchange risk(Cont’d)
31 December 2017
USD EUR HKD Total Financial assets
denominated in foreign
currency -
Cash at bank and on hand 1,241 - 10,767 12,008 Financial liabilities
denominated in foreign
currency -
Long-term borrowings 67,525,556 5,971,857 - 73,497,413 Current portion of
non-current liabilities 10,062,668 2,454,923 - 12,517,591 77,588,224 8,426,780 - 86,015,004 31 December 2016
USD EUR HKD Total Financial assets
denominated in foreign
currency -
Cash at bank and on hand 1,230 - 11,521 12,751 Other current assets 1,000,209 - - 1,000,209 1,001,439 - 11,521 1,012,960 Financial liabilities
denominated in foreign
currency -
Long-term borrowings 78,268,316 7,891,621 - 86,159,937 Current portion of
non-current liabilities 61,323,080 2,299,019 - 63,622,099 139,591,396 10,190,640 - 149,782,036 As at 31 December 2017, if RMB had strengthened/weakened by10% against the US dollar for various financial assets and liabilities denominated in US dollar while all other variables had been held constant, theGroup’s net profit for the year would have been approximately RMB 5,819,024 (31 December 2016: approximately RMB 10,394,247) higher/lower.
As at 31 December 2017, if RMB had strengthened/weakened by10% against the EUR for various financial liabilities denominated in EUR while all other variables had been held constant, theGroup’s net profit for the year would have been approximately RMB 632,009 (31 December 2016: approximately RMB 764,298) lower/higher.
As at 31 December 2017, if RMB had strengthened/weakened by10% against the HKD for various financial
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) assets denominated in HKD while all other variables had been held constant, theGroup’s net profit for the year would have been approximately RMB 808 (31 December 2016: approximately RMB 864) lower/higher.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XII Financial risk(Cont’d)
(1) Market risk(Cont’d)
(b) Interest rate risk
TheGroup’s interest rate risk mainly arises from long-term interest bearing borrowings including long-term borrowings, debentures payable and long-term payables. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 31 December 2017, theGroup’s long-term interest bearing borrowings were mainly RMB-denominated with floating rates, amounting to RMB 21,013,983,110 (31 December 2016: RMB 25,139,493,682).
TheGroup’s finance department at its headquarters continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new borrowing and the interest expenses with respect to theGroup’s outstanding floating rate borrowings, and therefore could have a material adverse effect on theGroup’s financial position. The Group determines the proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions, and performs periodic reviews and monitors to maintain appropriate combinations of fixed and floating rates. In 2017 and 2016, the Group did not hedge the interest rate risk with derivative financial instruments.
As at 31 December 2017, if interest rates on the floating rate borrowings had risen/fallen by 10 basis points while all other variables had been held constant, theGroup’s net profit would have decreased/increased by approximately RMB 18,043,307 (31 December 2016: rise/fall by 10 basis points, approximately RMB 19,208,821).
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, accounts receivable, other receivables, etc.
The Group expects that there is no significant credit risk associated with cash at bank since they are deposited at Yudean Finance, state-owned banks and other medium or large size listed banks. Management does not expect that there will be any significant losses from non-performance by these counterparties.
In addition, the Group has policies to limit the credit exposure on accounts receivable and other receivables. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a controllable extent.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XII Financial risk(Cont’d)
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by theGroup’s finance department in its headquarters. TheGroup’s finance department at its headquarters monitors rolling forecasts of the Group's short-term and long-term liquidity requirements to ensure it has sufficient cash and securities that are readily convertible to cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity dates below at their undiscounted contractual cash flows:
31 December 2017
Carrying amount Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total on balance sheet Short-term
borrowings 9,539,414,580 - - - 9,539,414,580 9,270,000,000 Notes payable 297,611,800 - - - 297,611,800 297,611,800 Payables 6,235,796,966 - - - 6,235,796,966 6,235,796,966 Long-term borrowings
and long-term
borrowings due
within one year 2,336,337,873 2,698,035,335 7,228,027,270 15,219,780,032 27,482,180,510 20,911,221,812 Debentures payable
and debentures
payable due within
one year 1,234,393,699 21,700,000 743,400,000 - 1,999,493,699 1,896,103,687 Long-term payables 406,242,457 376,429,119 752,323,464 457,267,963 1,992,263,003 1,548,259,241 20,049,797,375 3,096,164,454 8,723,750,734 15,677,047,995 47,546,760,558 40,158,993,506 31 December 2016
Carrying amount Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total on balance sheet Short-term
borrowings 5,943,733,314 - - - 5,943,733,314 5,758,860,000 Notes payable 1,330,480,837 - - - 1,330,480,837 1,330,480,837 Payables 6,553,160,164 - - - 6,553,160,164 6,553,160,164 Other non-current
liabilities 1,752,100,000 - - - 1,752,100,000 1,723,070,000 Long-term borrowings
and long-term
borrowings due
within one year 2,215,133,043 2,201,693,415 7,235,020,086 15,854,820,433 27,506,666,977 20,878,646,844 Debentures payable
and debentures
payable due within
one year 81,100,000 81,100,000 2,083,900,000 - 2,246,100,000 1,900,124,468 Long-term payables 591,752,787 405,242,457 1,002,131,561 572,555,653 2,571,682,458 2,360,722,370 18,467,460,145 2,688,035,872 10,321,051,647 16,427,376,086 47,903,923,750 40,505,064,683 TheGroup’s available financing credit lines under agreement with the financial institutions as at balance sheet date are as follows:
31 December 2017 31 December 2016
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Available financing credit lines under
agreement with the financing institutions 17,931,865,295 19,190,750,661
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XIII 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.
XIII Fair value estimates(Cont’d)
(1) Assets measured at fair value on a recurring basis
As at 31 December 2017, the assets measured at fair value on a recurring basis by the above three levels were analysed below:
Level 1 Level 2 Level 3 Total Available-for-sale financial assets
-
Available-for-sale equity
instruments 408,992,985 - - 408,992,985 As at 31 December 2016, the assets measured at fair value on a recurring basis by the above three levels were analysed below:
Level 1 Level 2 Level 3 Total Available-for-sale financial assets
-
Available-for-sale equity
instruments 419,736,308 - - 419,736,308 The Group takes the date on which events causing the transfers between the levels take place as the timing specific for recognising the transfers. There is no transfer between Level 1 and Level 2 for the current year. The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not traded in an active market is determined by the Group using valuation technique. The valuation models used mainly comprise discounted cash flow model and market comparable corporate model. The inputs of the valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate, credit spread, liquidity premium, EBITDA multiplier, liquidity discount etc.
(2) Assets and liabilities not measured at fair value but for which the fair value is disclosed
TheGroup’s financial assets and liabilities measured at amortised cost mainly include receivables, short-term borrowings, payables, long-term borrowings, debentures payable and long-term payables, etc.
The carrying amount of the financial assets and liabilities not measured at fair value is a reasonable
approximation of their fair value.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XIV Capital management
TheGroup’s capital management policies aim to safeguard theGroup’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
The Group's total capital is calculated as‘owners’equity’ as shown in the consolidated balance sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on the basis of gearing ratio.
As at 31 December 2017 and 2016, the Group's gearing ratios were listed below:
31 December 2017 31 December 2016 Gearing ratio 58.17% 58.49% XV Notes to the financial statements
(1) Accounts receivable
31 December 2017 31 December 2016 Accounts receivable 195,462,150 212,343,198 Less: Provision for bad debts - - 195,462,150 212,343,198 (a) The ageing analysis of accounts receivable is as follows:
31 December 2017 31 December 2016 Within 1 year 195,462,150 212,343,198 As at 31 December 2017 and 31 December 2016, the Company did not have any accounts receivable overdue but not impaired.
(b) Accounts receivable are analysed by categories as follows:
31 December 2017 31 December 2016
Ending balance Provision for bad debts Ending balance Provision for bad debts% of
% of total Percentage total Percentage Amount balance Amount (%) Amount balance Amount (%) With amounts that are
individually
significant and that
the related
provision for bad
debts is provided
on the individual
basis 195,462,150100.00% - - 211,416,39699.56% - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) With amounts that are
not individually
significant but that
the related
provision for bad
debts is provided
on the individual
basis - - - - 926,8020.44% - - 195,462,150100.00% - - 212,343,198100.00% - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XV Notes to the financialstatements(Cont’d)
(1) Accountsreceivable(Cont’d)
(c) As at 31 December 2017, the five largest accounts receivable aggregated by debtor were summarised and analysed as follows:
Provision for
Ending balance bad debts Percentage Total balance of the five largest accounts
receivable 195,462,150 - - (2) Other receivables
31 December 2017 31 December 2016 Entrusted loans receivable - 100,000,000 Petty cash receivable 901,951 313,648 Others 27,082,353 22,620,101 Less: Provision for bad debts - - 27,984,304 122,933,749 (a) The ageing of other receivables is analysed as follows:
31 December 2017 31 December 2016 Within 1 year 27,280,473 121,014,722 1 to 2 years 18,403 1,032,788 2 to 3 years 35,176 - Over 3 years 650,252 886,239 27,984,304 122,933,749 As at 31 December of 2017 and 2016, the Company were clear of significant overdue amount of other receivables with no provision for impairment.
(b) Other receivables are analysed by categories as follows:
31 December 2017 31 December 2016
Ending balance Provision for bad debts Ending balance Provision for bad debts% of total Percentage % of total Percentage Amount balance Amount (%) Amount balance Amount (%) With amounts that are
individually
significant and that
the related
provision for bad 22,394,10980.02% - - 115,767,02394.17% - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) debts is provided
on the individual
basis
With amounts that are
not individually
significant but that
the related
provision for bad
debts is provided
on the individual
basis 5,590,19519.98% - - 7,166,726 5.83% - - 27,984,304100.00% - - 122,933,749 100% - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XV Notes to the financial statements(Cont’d)
(2) Other receivables(Cont’d)
(c) As at 31 December 2017, other receivables from top five debtors in respect of outstanding balance are summarised as follows:
Percentage in total
balance of other Provision for Nature Balance Ageing receivables bad debts YUDEAN Sales of coal
ENVIRONMENTAL ash 22,394,109 Within 1 year 80.02% - Anxin Inspection Advances 871,043 Within 1 year 3.11% - Guangdong Yudean
Property Investment Co.,
Ltd. Deposit 597,764 Within 1 year 2.14% - Guangdong Dongguan
Fuel Branch, Sinopec Gas card
Sales Co., Ltd. deposit 350,000 Within 3 year 1.25% - Guangdong Yudean
Property Management
Co., Ltd. Deposit 195,188 Within 1 year 0.70% - 24,408,104 87.22% - (3) Long-term equity investments
31 December 2017 31 December 2016 Subsidiaries (a) 18,770,291,604 18,015,651,604 Joint ventures (b) 605,678,402 584,241,360 Associates (c) 5,132,577,336 4,786,410,164 Less: Long-term equity investments - provision for
impairment of subsidiary (a) (1,138,134,640) (489,567,215) 23,370,412,702 22,896,735,913
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XV Notes to the financial statements(Cont’d)
(3) Long-term equity investments(Cont’d)
(a) Subsidiaries
Movements for the current year
Ending balance Declared cash 31 December Increase in Decrease in Provision for 31 December of provision for dividends during 2016 investment investment impairment Others 2017 impairment the year Zhanjiang Electric 2,185,334,400 - - - - 2,185,334,400 - 84,122,835 Yuejia Electric 176,095,071 - - - - 176,095,071 (455,584,267) - Maoming Zhenneng 687,458,978 - - - - 687,458,978 - 10,570,227 Jinghai Power 1,930,395,668 - - - - 1,930,395,668 - 244,244,446 Zhanjiang Wind Power 242,277,000 - - - - 242,277,000 - - Zhongyue Energy 1,150,248,115 - - (187,248,115) - 963,000,000 (187,248,115) - Humen Electric 56,017,052 - - (52,824,636) - 3,192,416 (86,807,584) - Anxin Inspection 20,000,000 - - - - 20,000,000 - 17,536,791 Bohe Coal 1,985,000,000 244,000,000 - - - 2,229,000,000 - - Pinghai Power 720,311,347 - - - - 720,311,347 - 158,511,316 Red Bay 2,220,023,386 - - - - 2,220,023,386 - 121,305,105 Huizhou Natural Gas 977,416,646 95,090,000 - - - 1,072,506,646 - 123,758,514 Guangqian Electric 1,353,153,223 - - - - 1,353,153,223 - 220,357,088 Yuejiang Power 856,694,674 297,000,000 - (408,494,674) - 745,200,000 (408,494,674) - Huadu Natural Gas 78,000,000 108,550,000 - - - 186,550,000 - - Dapu Power 1,000,000,000 - - - - 1,000,000,000 - - Sub-total 15,638,425,560 744,640,000 - (648,567,425) - 15,734,498,135 (1,138,134,640) 980,406,322
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XV Notes to the financial statements(Cont’d)
(3) Long-term equity investments(Cont’d)
(a) Subsidiaries (Cont'd)
Movements for the current year
Ending balance of Declared cash Increase in Decrease in Provision for provision for dividends during 31 December 2016 investment investment impairment Others 3 1 December 2017 impairment loss the year Guangdong Wind
Power 827,419,390 - - - - 827,419,390 - - Leizhou Wind
Power 80,800,000 - - - - 80,800,000 - - Qujie Wind Power 231,750,000 - - - - 231,750,000 - - Power Sales 230,000,000 - - - - 230,000,000 - 50,000,000 Lincang Energy 427,689,439 - - - - 427,689,439 - - Yongan Natural
Gas 90,000,000 - - - - 90,000,000 - - Tongdao Company - 10,000,000 - - - 10,000,000 - - Sub-total 1,887,658,829 10,000,000 - - - 1,897,658,829 - 50,000,000 Total 17,526,084,389 754,640,000 - (648,567,425) - 17,632,156,964 (1,138,134,640) 1,030,406,323 Relevant information of theCompany’s subsidiaries is set out in Note VI.
Zhongyue Energy and Yuejiang Power have suffered from continued operating losses. Management of the Company respectively made provision for impairment of long-term equity investment amounting to RMB 187,248,115 and RMB 408,494,674 after assessing the recoverable amounts of this long-term equity investment on the basis of equipty shares in Zhongyue Energy and Yuejiang Power.
In anticipation of the four generator units of Yuejia Electric to be shut down successively around 2016, theCompany’s management has provided for an impairment amounting to RMB 455,584,267 on the difference between theCompany’s entitlement in YuejiaElectric’s equity and its investment costs in Yuejia Electric in 2009, 2011and
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) 2013 after assessing the recoverable amounts of this long-term equity investment. As at 31 December 2017, the balance of impairment for long-term equity investments of Yuejia Electric was RMB 455,584,267 (2016: RMB 455,584,267).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XV Notes to the financial statements(Cont’d)
(3) Long-term equity investments(Cont’d)
(a) Subsidiaries (Cont'd)
The2×1000MW Ultra Supercritical Unit Engineering Project by theCompany’s holding subsidiary Guangdong Yudean Humen Electric Co., Ltd. has been implemented with pre-stage feasibility analysis, design, three supplies and one levelling and other preparations. The project is remaining stagnant affected by national industrial policies recent years, and the entire assets have indications of possible impairment. After the impairment test, provision for impairment loss of RMB 39,107,109 and RMB 87,911,775 has been made respectively in 2016 and 2017 for the project. After evaluating the recoverable amount of the long-term equity investment, theCompany’s management made the provision for impairment of Humen Electric amounting to RMB 86,807,584 according to theCompany’s equity proportion. As at 31 December 2017, the balance of provision for impairment of long-term investments of Humen Electric was RMB 86,807,584 (2016: RMB 33,982,948).
(b) Joint ventures
Movements for the current year
Share of net Adjustment to Ending profit/(loss) other Others Cash balance of 31 December Increase in Decrease in under equity comprehensive changes in dividends/profi Provision for 31 December provision for 2016 investment investment method income equity ts declared impairment Transfer out 2017 impairment Industry Fuel 584,241,360 - - 80,668,157 - - (59,231,115) - - 605,678,402 -© Associates
Movements for the current year
Share of net Adjustment to Ending profit/(loss) other Others Cash balance of 31 December Increase in Decrease in under equity comprehensiv changes in dividends/prof Provision for 31 December provision for 2016 investment investment method e income equity its declared impairment Transfer out 2017 impairment Shanxi Yudean Energy 998,393,392 - - 226,047,854 - - (8,000,000) - - 1,216,441,246 - Yudean Finance 667,666,853 - - 75,329,385 - - (42,295,033) - - 700,701,205 - Taishan Electric 1,970,490,827 - - 86,266,136 - - (95,281,354) - - 1,961,475,609 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) Yudean Shipping 935,332,553 - - 8,613,940 - - (2,188,557) - - 941,757,936 - Western Investment 200,011,582 - - (46,314,869) - - - - - 153,696,713 - Jiangkeng Hydropower 5,991,055 - - 616,304 - - (933,933) - - 5,673,426 - Yangshan Zhongxinkeng
Electric 8,523,902 - - 684,457 - - (1,698,988) - - 7,509,371 - Yudean Property Insurance - 147,000,000 - (1,678,170) - - - - - 145,321,830 - 4,786,410,164 147,000,000 - 349,565,037 - - (150,397,865) - - 5,132,577,336 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) XV Notes to the financial statements(Cont’d)
(4) Revenue and cost of sales
2017 2016 Revenue from main operations 2,069,432,698 2,003,442,330 Revenue from other operations 48,067,193 26,434,700 2,117,499,891 2,029,877,030 2017 2016 Cost of sales from main operations 2,014,615,189 1,632,941,869 Other operating expenses 4,520,324 15,319,659 2,019,135,513 1,648,261,528 (a) Revenue and cost of sales from main operations:
2017 2016
Revenue from Cost of sales from Revenue from Cost of sales from main operations main operations main operations main operations Revenue from sales of
electricity 2,055,641,237 2,004,239,952 1,995,549,884 1,626,804,586 Revenue from steam 13,791,461 10,375,237 7,892,446 6,137,283 2,069,432,698 2,014,615,189 2,003,442,330 1,632,941,869 (b) Revenue and cost of sales from other operations
2017 2016
Revenue from Cost of sales from Revenue from Cost of sales from other operations other operations other operations other operations Sales of materials 25,927,045 1,555,514 19,791,562 14,912,040 Rental income 4,852,933 21,077 5,182,165 234,605 Others 17,287,215 2,943,733 1,460,973 173,014 48,067,193 4,520,324 26,434,700 15,319,659 (5) Assets impairment losses
2017 2016 Impairment losses of long-term equity investment 648,567,425 33,982,948 Impairment losses of available-for-sale financial
assets 25,010,686 - Impairment losses of construction in progress - 5,802,000 Impairment losses of fixed assets - 45,937,259
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) 673,578,111 85,722,207 (6) Investment income
2017 2016 Income from long-term equity investments under
cost method 1,030,406,322 1,849,743,271 Gain from long-term equity investments under
equity method 430,233,195 286,517,653 Investment income obtained from
available-for-sale financial assets during the
holding period 52,319,444 50,151,450 Interest income from entrusted loans 17,688,957 19,963,211 Others 359,463 256,276 1,531,007,381 2,206,631,861 There is no significant restriction for remittance of return on investment for the Group.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) I Statement of non-recurring profit or loss
2017 2016 Losses on disposal of non-current assets 4,720,404 3,723,321 Government grants recognised in profit or loss for the
current period (41,344,595) (19,074,097) Tax, overdue fine, and penalty paid after tax inspection 7,274,913 125,842,425 Expenditure of resettlement of early retired employees
due to combination - 59,541,635 Non-operating (income)/expenses other than aforesaid
items (6,502,013) 104,916,156 (35,851,291) 274,949,440 Effect of income tax 10,104,459 18,950,258 Effect on minority interests after taxation 1,020,520 (155,736,881) (24,726,312) 138,162,817 Basis for preparation of statement of non-recurring profit or loss
Pursuant to the Explanatory Announcement for Information Disclosure of Companies Offering Securities to the Public No.1 - Non-recurring Profit or Loss (2008) issued by China Securities Regulatory Commission, non-recurring profit or loss refers to profit or loss arising from transactions and events that are not directly related to thecompany’s normal course of business and that are related to thecompany’s normal course of business and have impact on the right judgement of thecompany’s operation performance and profitability of users of the financial statements due to special nature and occasional occurrence.
II Return on net assets and earnings per share
Weighted average
Earnings per share
return on netasset(%) Basic earnings per share Diluted earnings per share 2017 2016 2017 2016 2017 2016 Net profit attributable to
ordinary shareholders
of the Company 3.16% 3.99% 0.14 0.18 0.14 0.18 Net profit attributable to
ordinary shareholders
of the Company after
deducting
non-recurring profit or
loss 3.06% 4.58% 0.14 0.20 0.14 0.20
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (All amounts in RMB Yuan unless otherwise stated) III Differences of accounting data under Chinese and foreign accounting policies
Differences in net profit and net assets attributable to the shareholdings of the company included in the consolidated financial statement prepared under the International Financial Reporting Standards (IFRSs) and the China Accounting Standards (CASs) are as follows:
Net profit Net assets
2017 2016 2017 2016 Under the CASs 743,180,431 936,534,941 23,695,190,653 23,378,847,225 Items and amounts adjusted
under the IFRSs
a. Difference in recognition of
goodwill on business
combination under
common control - - 64,623,000 64,623,000 b. Difference in recognition of
land use value upon
business combination (630,000) (630,000) 18,230,000 18,860,000 c. Impact on minority interests 54,120 54,120 4,756,099 4,701,979 Under the IFRSs 742,604,551 935,959,061 23,782,799,752 23,467,032,204 (a) Difference in recognition of goodwill on business combination under common control and difference in recognition of land use value upon business combination
Under the requirement of new CASs, goodwill arising from business combination under common control should not be recognised and capital reserve should be adjusted accordingly; whereas under the requirement of IFRSs, goodwill arising from business combination under common control should be recognised and it represents the excess on acquisition costs over the share of identifiable fair value of net asset from the acquiree on business combination. All assets obtained from the acquiree on business combination should be measured on their fair values. The measurement of the two standards will continue to show a difference. (b) Impact on minority shareholders
The above mentioned difference in recognition of land use value upon business combination exists in the Company and some holding subsidiaries, thus causes effect against minority interests.
Guangdong Electric Power Development Co., Ltd. 2017Annual Report XII. Documents for reference
1.Financial statements bearing the seal and signature of legal representative, financial controller and the person in charge of the accounting organ;
2.Original audit report seal with accounting firms and signature and seal from CPA;
3.All original copies of official documents and notices, which were disclosed in Securities Times,
China Securities and Hong Kong Commercial Daily (Both English and Chinese version);
4. Chinese Version of the annual report
The documents mentioned above are kept in office, and are ready for reference at any time (except public holidays, Saturday and Sunday).